We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

IKEA and India - Assignment Example

Comments (0)
Ikea & India Table of Contents 1. Part A: Analysis : p.3 a. Introduction : p.3 b. Analysis and justification of Indian market : p.4 c. Porter’s Five forces Model : p.4 d. 7 P’s : p.6 2. Part B: Discussion : p.10 a. Strategy development : p.10 b. Implementation : p.13 c…
Download full paper

Extract of sample
IKEA and India

Download file to see previous pages... During 1960s-1970s, it became the prominent furniture manufacturer in Sweden. In the 1980’s, IKEA expands dramatically into new markets such as USA, Italy, France and the UK (Ikea, 2012). At present, Ikea has operations in more than 40 countries in the world. However, it has no business units in India at present even though India is one of the most rapidly developing economies in the world. Many people believe that India may become a superpower both in terms of economic growth as well as military power in near future itself. Moreover, it is often said that global wealth is currently shifting from less heavily populated American and European continents to the more heavily populated Asian continent because of the rapid growth witnessing in India and China like countries. Prominent international companies are currently competing each other in establishing business units in India like emerging markets. Under such circumstances, it is difficult for Ikea like MNC’s to avoid India completely while formulating their international business strategies. This paper analyses the merits and demerits of India as a market for Ikea’s international business operations. Analysis and justification of Indian market Porter’s Five forces Model Michael Porter has identified five competitive forces which may affect the competitive power of an organization. They are; Threat of substitute products, Threat of new entrants, Intense rivalry among existing players, Bargaining power of suppliers and Bargaining power of Buyers (Porter’s Five Forces Model, 2009). The figure given below illustrates Porter’s five forces theory. (Porter’s Five Forces Model, 2009) Threat from new entrants is the first force in Porter’s five forces model. “Microeconomics teaches that profitable industries attract new competition until the downward pressure on prices has squeezed all the economic profit from the firms. New firms in an industry put downward pressure on prices, upward pressure on costs and an increased necessity for capital expenditures in order to compete” (Porter’s Five Forces- Threat of New Entrants, 2012). Furniture market in India is not much competitive because of the absence of prominent companies. In fact furniture manufacturing is a small scale industry in India and hence MNC’s like Ikea can easily overcome the resistance of small scale furniture manufacturers in India. In other words, Indian furniture industry is highly fragmented and Ikea can exploit such situation to their favor. Less threat from new entrants or competitors will help Ikea to increase their profits in Indian market. “Competitive rivalry will be high if there is little differentiation between the products sold between customers” (For Marketing Learners Globally, n. d). As mentioned earlier, Nokia may not face much competition in Indian market because of the absence of any furniture manufacturing MNC’s in Indian market. Small scale furniture manufacturers in India may not have the financial capabilities to compete with Ikea like big companies. “Supplier power exists when there are only few suppliers. It also exists when the switching cost becomes more for the organization to move from one supplier to another” (For Marketing Learners Globally, n.d). Availability of wood for manufacturing furniture is different at different locations in India. For example, India’s southernmost states such as Kerala have immense forest resources whereas North India has ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
IKEA Stores Layout and Sizes
The key objectives of high quality and low cost govern the design, manufacture, transportation, sale and assembly of IKEA products (Ikea.com. 2012). The guiding vision is the personal quest of Ingvar Kamprad, founder of IKEA. Kamprad hails from the Smaland province in southern Sweden, where natural resources are scarce, people work hard and live frugally.
10 Pages(2500 words)Assignment
Location and Layout of IKEA
Included in operations management are the determination of the location of the firm’s facilities such as its plants and stores, and the design of the layout of these facilities. There are general factors that must be taken into consideration in deciding upon the location and layout of facilities in general, and specific factors that are at play when the location and layout pertain to retail distribution facilities such as stores and outlets.
9 Pages(2250 words)Assignment
Incredible India
This country got its independence on the 15th of August 1947 after a very long struggle. The British left India in 1950. The Indians celebrate their Republic Day on the 26th of January 1950. This day their constitution was approved. Until its independence in 1947, the present day neighbors of India, Pakistan, Bangladesh, Myanmar, were all a part of British India.
4 Pages(1000 words)Assignment
IKEA Analysis Report (Operations management)1
Ingvar Kamprad has founded IKEA during the year 1943 and the Swedish furniture retailing giant has established its presence over 33 countries across the globe (IKEA PS, 2012). IKEA’s Marketing Place or expanded distribution is probably most important marketing mix element for IKEA.
5 Pages(1250 words)Assignment
Overview of IKEA Define IKEA In this age of stiff economic condition and tough competition, IKEA is one of the recognised brands of Sweden, dealing in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others stylish accessories of the residence.
10 Pages(2500 words)Assignment
Summary and Conclusions 4 10. References 5 India Introduction The activities involved or needed, in the transmission of a product from the manufacturer to the consumer is called business. The main premise of business is trade, and international trade becomes the footing of international business.
7 Pages(1750 words)Assignment
International Business
The report, which is prepared for Merrill Lynch, at the outset, discusses Merrill Lynch and IKEA and the overview of FDI in Chinese
12 Pages(3000 words)Assignment
India Census
This is the lowest sex ratio of the country since its independence in 1947 (Sahni 2011). The call for anti-female feticide of the
1 Pages(250 words)Assignment
Employee Motivation in IKEA
Employees that are motivated will enhance the productivity of the firm. On the other hand, employees that are not motivated will have a negative effect on the productivity of the organization. For instance, IKEA is renowned for production of quality products. This is directly proportional to the motivation it gives its employees.
4 Pages(1000 words)Assignment
As such, the company does not have an effective ground for consumer assessment and needs identification to ensure that diversification of consumer
1 Pages(250 words)Assignment
Let us find you another Assignment on topic IKEA and India for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us