Slide the strategy of international business IKEA in india

The strategy of international business: IKEA in India Group I.Introduction to IKEA General information - It was originally a general store founded in 1943 by Ingvar Kamprad IKEA has become a global home furnishings brand, bringing affordability, design, and comfort to people around the world - By 2021, the company has expanded to a total of 445 stores and 225,000 total employees, with revenues of €41.9 billion Past noticeable actions and its achievements “Through cost control” “Making the store into an amusement park” Mottos of IKEA $45.4 billion Global revenue 9th global retailer the most global furniture retail brand II Analysis of Indian market Reasons to enter India FIRST The Indian furniture industry is, as of now, very fragmented SECOND The Indian furniture market is accelerating at a significant pace  Both an opportunity and a challenge that IKEA must evaluate when expanding THIRD FOURTH The digital presence will be a strength in India There is a very sizable market to be reached in  Opportunity for IKEA to reach both the digital India generations and the older consumers Challenges • The Indian furniture market is a low-cost competition market where consumers are extremely price sensitive • IKEA is only ranked as the 7th largest furniture supplier in India PESTEL analysis - P E S T E L POLITICAL ECONOMIC SOCIAL TECHNOLOGY ENVIRONMENTAL LEGAL Allowing 100% FDI in the retail sector - Complex administrative framework - Reduction of corporate tax Increase in GDP - Large and young population - Research and development (R&D) - Cultural differences between India - E-commerce development 3rd most renowned leader in the world - for social responsibility and and Sweden environmental sustainability - High disposable income - Healthy and sustainable living - Continued urbanization - Climate positive initiatives - Social equality and fairness Legal policies and trading regulations - Don’t have specific legislations o privacy and data protection III IKEA’s business strategy in India Low-cost strategy in India IKEA's Flat Packaging Innovation Mass production Unique Construction Method Honeycomb structure Regular structure Low-cost strategy in India Independent shopping Take it home policy Promote Do it yourself (DIY) Pressure of local responsiveness In the case of IKEA in India, the pressure for local responsiveness is relatively low because IKEA sells to the same basic customers worldwide: young, upwardly mobile people who are looking for tasteful yet “disposable” furniture Billy Bookcase and flat-weave rugs Conclusion Kitchen IKEA’s textile section Food menu IKEA sells additional spice boxes, pressure In India, there will be more bright colors and Its meatballs will have chicken and cookers, and flat pans patterns vegetables here instead With high pressure for cost reduction and demand for local responsiveness is minimal, the best approach for IKEA in India is global standardization strategy IV Achievements in India FIRST SECOND THIRD IKEA has introduced a 400,000-square feet The firm sources products worth over €315 million During COVID-19 pandemic, the sales of IKEA Hyderabad facility offering its signature do-it- annually It has over 50 local suppliers and 45,000 still recorded an increase in sales and some yourself furniture co-workers noticeable achievements INTERNATIONAL BUSINESS Thanks for your attention If you have any questions, feel free to ask us!!! ~From Group with love ... III IKEA? ??s business strategy in India Low-cost strategy in India IKEA' s Flat Packaging Innovation Mass production Unique Construction Method Honeycomb structure Regular structure Low-cost strategy. .. structure Low-cost strategy in India Independent shopping Take it home policy Promote Do it yourself (DIY) Pressure of local responsiveness In the case of IKEA in India, the pressure for local responsiveness... responsiveness is minimal, the best approach for IKEA in India is global standardization strategy IV Achievements in India FIRST SECOND THIRD IKEA has introduced a 400,000-square feet The firm sources