IKEA India Entry Strategy

Essay by taransainiUniversity, Master's March 2013

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Executive Summary:

IKEA originated in 1943 by a 17 year old Ingvar Kamprad using his entrepreneurial skills selling items out of a catalog and continued to expand where his stores is located in more than 30 countries currently. IKEA sells furniture and other household products at a very low price so that everyone can afford them. IKEA is always looking to save money on their packaging, costs, and any other opportunity they get to save money. As a team we thought it would be most beneficial for IKEA to enter into India specifically Mumbai, India. India is one of the most emerging countries and gives IKEA a great opportunity. As a team we feel IKEA should implement interior designers that help people decide which furniture properly fits in their house hold. The interior designer will be extremely knowledgeable and accommodating when helping people decorate their homes.

India is an emerging country with one of the largest democracies in the world.

India has one of the largest populations in the World which is a great opportunity for IKEA. One problem with the huge population is the wide array of income ranging from the very wealthy all the way down to the lower class who may work for as little as a dollar a day. The furniture industry in India only consists of .05% of its GDP which is another reason IKEA has a great opportunity to be successful in India. India has a large opportunity for FDI (foreign direct investment) because of the current economic conditions and the rapid growth rate of the country in terms of GPD and other economic indicators.

IKEA in India will maintain the original Swedish logo and plans to target people in India in the lower middle class and above. It is estimated that...