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IKEA India: Expanding to Success

Mokhalles Mehdi; Lubna Nafees; Shriraam S. Bhagavath

Product #:9B18M094_P
Supplier:Ivey
Discipline:Entrepreneurship, General Management, International Business, Marketing
Setting:India, Sweden, 2016-2017
Details:Case (PDF) • 11 pages • 2018-06-28

Subjects:

Value creationMarketing strategyStrategyConsumer behaviorCustomer relationship managementMarket researchBusiness managementSales and marketingEntrepreneurshipInternational businessMarketing

Industries:

Goods, trade, and consumer services

Geography:

IndiaSwedenAsiaEurope
Your Price:$9.71

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In May 2017, IKEA India’s chief executive officer (CEO) was facing a dilemma. The company had decided to start its business operations in India by opening an experience centre in Hyderabad in November 2018, followed by furniture retail outlets across India by 2025. Key target segments were young, middle-class price-conscious consumers. IKEA India aimed to sell its products at a low price, aligning with its vision. However, the CEO was challenged with developing a strategy for business growth at a time when major global retailers were going bankrupt. He needed to figure out the appropriate pricing and supply chain strategy for India’s complex and diverse environment, while offering value to consumers.

Learning Objectives

This case is designed for use in undergraduate or graduate programs. It is ideal in global marketing courses covering topics such as understanding an emerging market, creating value for consumers, retail business operations, consumer behaviour, new marketing strategies, vendor selection and relationship management, and strategy. After completing the case, student should be able to understand
  • the concept of value creation and business growth in an emerging market;
  • strategies adopted for retail business operations in an emerging market;
  • consumer behaviour in an emerging market;
  • company marketing strategies and tactics in an emerging market;
  • strategies for market and product development; and
  • the criteria used in selecting vendors and how to manage the vendor relationship.
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Case Study: IKEA India: Expanding to Success | Ivey Publishing