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For this discussion forum, we are going to work on the Opening Case from Chapter 13. This is an important case study as it explores the entry of a giant corporation into one of the biggest untapped markets for such a company in the world: India.
Below, you can see a summary of the case. You can find the full text of the case at the beginning of Chapter 13 in your book.
Additionally, I have added some extra material and videos to help you understand the issues better. It also helps those of you who might be interested in digging deeper and learning about India and how foreign companies have fared as they enter that market.
As usual, after reading the case study carefully and watching the videos I have provided. Make sure to number your answers accordingly and don't leave any questions unanswered:
Summary of case
The opening 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.
Please make sure to read and study the full case in Chapter 13 of our textbook.
In addition: Here are couple of links and videos that are very informative about this topic:
Website: Why Ikea is tweaking its India strategy
Questions:
1. Why was it so important to IKEA that it understand the market in India? What made the market different from other markets that IKEA operates in?
2. Can IKEA maintain its Swedish identity in India? Discuss.
3. Given that IKEA first opened in India in 2018, research and briefly discuss the status of the stores now (in 2020).
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