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Launching of the store Ikea in India

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case study
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7 pages
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  1. IKEA France strategy
  2. Product
  3. Price: low costs
  4. Place
  5. Promotion
  6. Price: how much does it cost?

I have decided to develop Ikea in India, and think that it would be interesting to focus on the following questions: How will IKEA's products and services integrate into the Indian market? What adjustments are or will be necessary to enter the Indian market of furniture? What threats from local competition should IKEA take into account and how can these threats be counteracted? India has very cheap and readily available labor. It would thus be very profitable to hire local population in the company. For example, the total labor force is about 337 million people. Of these, 65% or more are engaged in agriculture, 4% in services, 3%in manufacturing and construction, and 3% in transport. The subsidiaries will be located in huge cities of India because a large share of the population engages in manufacturing. India has a large unemployment rate, so there will be no problems engaging labor.

[...] A former manager of IKEA, in France, explained to the Guardian "You cannot simply go to IKEA with your hands in your pockets. You must show some dynamism" The client is pushed to help himself and assemble the furniture. "IKEA's objective is not to exempt consumers from performing some tasks, but to mobilize them to do easily something they have possibly never done before". The vision based on the creation of a shared value is combined with the will to minimize "lost spaces". [...]


[...] IKEA France also uses the press - where the stress is put on products - and poster campaigns, usually in a rather classical and unimportant way, with the exception of the inauguration of stores. ( Public relations and press office The primary function of the PR policy developed by IKEA France is to protect the identity of the IKEA brand, as well as to communicate its vision, its ideas about business, the IKEA concept and the values related to it. [...]


[...] Table: Support activities for the general policy of low prices developed by IKEA in India Identify raw materials and materials at low prices: IKEA's designers and customers constantly Activity 1 seek alternative materials corresponding to a good quality and lowest cost. In particular, this will be reflected by the substitution of teak by beech components and by the diffusion and, later acceptance of cheap furniture made of pinewood and yellow wood. The development and adaptation of particle panels in the furniture industry also will follow that global vision. [...]

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