Reference no: EM133349939
IKEA INDIA CASE STUDY
QUESTIONS 1
a) Review IKEA's general environment segments and elements in India. - 1 & half page
-PESTLE analysis (6 segment - Political,economic,social,technological,legal & environmental)
-mention & explain in detail the elements for each segment.
-Definition for each segment is not required
b) Discuss how the differences in general environment in India (compared to other countries that IKEA has opened retail stores) will impact IKEA financially? - 1 & half page
-explain in detail
c) The choice of strategy should be based on an organization's key competencies. Deliberate this statement in relation to IKEA's decision to pursue international strategy instead of staying in Sweden? - 1&half page
- mention & explain in detail the 3-reason company pursue international strategy / go foreign market (market size, economicscale, location)
d) Discuss IKEA's choice of international entry mode compared to other international entry modes? - 1 & half page
- 5 mode of entry (choose one mode): exporting,licensing,franchising,jointventure,wholly owned subsidiary
-definition for each entry mode is not required
- chosen entry mode: wholly owned subsidiary
- explain and give reason in detail on the IKEA'S choice of entry mode - wholly owned subsidiary mode IKEA
Question 2 - for reference purpose
International Strategy Benefits
Why companies expand into foreign markets
1. Increased Market Size
• Domestic market may lack the size to support efficient scale manufacturing facilities.
2. Economies of Scale (or Learning)
• Expanding size or scope of markets helps to achieve economies of scale in manufacturing as well as marketing, R&D or distribution.
• Can spread costs over a larger sales base
• Can increase profit per unit
3. Location Advantages
• Low cost markets aid in developing competitive advantage by providing access to:
• raw materials
• transportation
• lower costs for labor
• key customers
• Energy
4. Achieving greater returns on capital and/or investment in new product/process developments
CASE - Business Model and Competitive Strategy of IKEA in India.
Attachment:- CASE.rar