ABOUT THE COMPANY INTERNATIONAL MARKET ENTRY STRATEGY COUNTRY IDENTIFICATION – CONSUMER PREFERENCE PRELIMINARY SCREENING AND IN-DEPTH ANALYSIS FINAL SELECTION AND DIRECT EXPERIENCE ABOUT THE COMPANY INTERNATIONAL MARKET ENTRY STRATEGY COUNTRY IDENTIFICATION – CONSUMER PREFERENCE PRELIMINARY SCREENING AND IN-DEPTH ANALYSIS FINAL SELECTION AND DIRECT EXPERIENCE

1. Company International Market
Entry Strategy
By – Mansi Deokar
Bba (ib)
Sem - vi

2. index
• ABOUT THE COMPANY
• INTERNATIONAL MARKET ENTRY STRATEGY
• COUNTRY IDENTIFICATION – CONSUMER
PREFERENCE
• PRELIMINARY SCREENING AND IN-DEPTH ANALYSIS
• FINAL SELECTION AND DIRECT EXPERIENCE

3. About the company
• IKEA is a Swedish-founded multinational group that designs and
sells ready-to-assemble furniture, kitchen appliances and home
accessories.
• It was established in 1943 and has been the world's largest furniture
retailer since at least 2008.
• IKEA is operating more than 300 stores around the world.
• IKEA opened its first store in India in July 2018, in the southern
city (hitech city) of Hyderabad.

4. INTERNATIONAL MARKET ENTRY
STRATEGY
• Exporting
• Licensing
• Joint venture
• Franchising
• Contract manufacturing
• Mergers & acquasition

5. Country Identification – Consumer
Preference
• IKEA chose india because of its large population & wide
platform for its product exposer.
• The furniture industry in india only consists of 0.5% of
its GDP which is another reason IKEA has a great
opportunity to be successful in india.
• India has a large opportunity for FDI ( foreign direct
investment ) because FDI has focused on liberalisation
for foreign invester.
• Low labour cost attracted IKEA towards indian market

6. Preliminary screening and in-depth
analysis
• In India, a lot is driven by the price of the goods and not
so much about the quality.
• Indian population easily gets attracted towards foreign
goods.
• In business, PESTLE analysis is very important.
• P- Political
• E- Economical
• S- Social
• T- Technological
• L- Legal
• E- Environmental.

7. Final selection and direct experience
• Ikea employees also visited about 1,000 homes in
various cities to understand how people lived and what
they needed.
• Indian women are shorter so the company decided to
showcase some cabinets and at lower heights.
• Some challenges faced by ikea after entering india.
• Online rivals:
• Cheaper products:
• Acquiring land in India: