Question: IKEA Entering India, Finally! Summary :The closing case explores IKEA$$s expansion into India. The Swedish retailer, renowned for its ability to maintain its entire concept in multiple foreign markets, decided that India required a different strategy. Despite its considerable experience operating in foreign markets, IKEA, aware that India is one of the

IKEA Entering India, Finally!

Summary :The closing case explores IKEA$$s expansion into India. The Swedish retailer, renowned for its ability to maintain its entire concept in multiple foreign markets, decided that India required a different strategy. Despite its considerable experience operating in foreign markets, IKEA, aware that India is one of the largest markets in the world, wanted to avoid missteps and so carefully planned its expansion over five years, visiting some $200$ homes in India and learning about the Indian lifestyle. Today, the company has about $400$ employees in India, a number it expects to grow to $15,000$ by $2025$ as the company continues to expand its presence.

Case Discussion Questions

$1.$ What do you think are the attractions of India to IKEA?

$2.$ Why did the company chose Hyderabad as the location for its first store opening?

$3.$ What are the biggest challenges IKEA faces in growing its Indian operation?

$4.$ IKEA entered India by establishing a wholly owned subsidiary. Why do you think the company chose this entry mode over other entry modes, such as franchising the IKEA concept or a joint venture?