CLA 2
Shivam Dhawan
Westcliff University
ECO 700 Business in a Global Economy
Prof: Eduardo Haynes
06/17/2023
Introduction
CLA 2 assignment is based on the research about IKEA’s entry in India. IKEA and other
multinational corporations see great potential in India because of the country's rising middle
class. IKEA's first store in India opened in Hyderabad this year. The opportunities and threats
that IKEA faces as it expands its business in India are laid out in this infographic. The
infographic describes how IKEA is adjusting to the Indian market which can be deduced by
examining the company's entry mode, the challenges it faces in expanding its India operation,
and the benefits it sees from establishing a presence in Hyderabad.
Infographic
Conclusion
To conclude, IKEA management did a thorough research prior to entering and is
continuing to adapt to the Indian market which is growing rapidly. IKEA has a good chance of
succeeding there thanks to its strong brand recognition and promising future. India's growing
middle class, business-friendly policies, and ready availability of both raw materials and labor
have all contributed to IKEA's success there. Cultural barriers, complicated regulations, a lack of
available real estate, and established local players all pose serious obstacles for IKEA despite the
company's optimism about the Indian home furnishings market (Hill, 2022). Despite the
challenges, IKEA remains committed to expanding its operations in India and is adapting its
products and strategies to meet the needs of the Indian market.
References
Bhattacharya, A. (2019). IKEA's India bet runs into thorny issues. Forbes.
https://www.forbes.com/sites/anuraghunathan/2019/08/23/ikeas-india-bet-runs-int
o-thorny-issues/?sh=6b4b4c3d5c2f
Chakraborty, S., & Chakraborty, S. K. (2020). IKEA in India: A case study on market
entry strategy. Journal of International Business Research and Marketing, 5(1),
1-9. https://doi.org/10.33423/jibrm.v5i1.764
Gupta, S., & Gupta, R. K. (2020). IKEA's entry into India: A case study on the challenges
faced by the company. International Journal of Management Studies and
Research, 8(2), 1-7. https://doi.org/10.18488/journal.18.2020.82.1.7
Hill, C. (2022). Global business today (12th ed.) McGraw-Hill Higher Education.
Kumar, A., & Sethi, D. (2018). IKEA's entry into India: The right strategic fit? Journal of
Business Strategy, 39(6), 3-11. https://doi.org/10.1108/JBS-06-2018-0092
Mishra, S., & Mohanty, R. P. (2019). IKEA's entry into India: A case study on the
marketing strategies adopted by the company. International Journal of
Management Studies and Research, 7(12), 1-7.
https://doi.org/10.18488/journal.18.2019.712.1.7
Srivastava, P. (2018). Why Hyderabad was chosen as the location for IKEA's first store in
India. The Economic Times.
https://economictimes.indiatimes.com/industry/services/retail/why-hyderabad-was
-chosen-as-the-location-for-ikeas-first-store-in-india/articleshow/65517420.cms