IKEA India Expansion Strategy Dilemma Sudhanshu Shekhar Sagarika Paul Sandeep Puri Parijat Upadhyay
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Sure, let’s take a closer look at the IKEA India Expansion Strategy dilemma and suggest some ways forward: The Global Furniture Market – Growth Prospects and Emerging Trends – According to Euromonitor International’s 2018 report on furniture market, India is predicted to be the fastest-growing market in terms of value by 2023, growing by 8.8% at an impressive CAGR of 7.5%. –
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A dilemma has arisen in the minds of IKEA India’s senior management, after the country’s government banned home delivery of the Swedish furniture retailer. The reason: some politicians believe that home delivery will put the Indian customers at the mercy of the company. IKEA India has started selling furniture at 100 of its existing stores, but they will now only sell IKEA’s range at an additional 150 stores that are to be opened within the next two years. The additional stores
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IKEA India’s expansion strategy has created a dilemma for the company. It is facing the challenge of making its operations in the country profitable while being a good corporate citizen. India is an economically and socially disadvantaged country, and the success of IKEA’s expansion strategy requires a unique and uncommon approach. First, the company must find a way to generate a good profit in India. While a profit is not expected, it will be better for the company to have a reasonable one. The company should have
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The Indian economy continues to grow at an impressive rate of 7.4%, which has been one of the biggest success stories in the world. The government’s focus on developing the agricultural sector, boosting the manufacturing industry and the techno-economic developments are just a few examples of the country’s progress in these fields. However, as we have seen in recent years, the country also has a significant middle class. With this growth in the middle class, a growing number of people are shopping online more frequently. IKEA’s global
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“In 1994, IKEA launched its flagship store in India in Bangalore. I was part of that team, and as their first employee, I witnessed the store’s opening day. I remember being thrilled at the prospect of creating a home-owning culture, by providing home furnishing products to Indians, who, until then, had never been exposed to such a culture. The vision and strategy were exciting, and the possibilities of creating IKEA’s next growth phase were immense. However, the first couple of years
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IKEA India Expansion Strategy Dilemma: The Future of IKEA’s Indian Expansion IKEA India expands its portfolio and adds to the company’s existing line up. The company has taken steps to expand its business in the Indian market, focusing on the affordable housing segment, with an aim to become a 360-degree retail solutions provider. navigate here However, the company is facing a dilemma. Company Overview: IKEA India operates through two different segments – “