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IKEA India: Expansion Strategy Dilemma

Sudhanshu Shekhar, Sagarika Paul, Sandeep Puri, Parijat Upadhyay

Product #:W43453
Supplier:Ivey
Discipline:International Business, Strategy
Setting:India, 2024
Details:Case (PDF) • 8 pages • 2025-05-13

Subjects:

Digital transformationCustomer experienceBusiness managementInternational businessStrategy

Industries:

Goods, trade, and consumer services

Geography:

IndiaAsia
Your Price:$9.71

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Despite a goal to open more stores and become a meaningful brand in India by 2030, IKEA India Pvt. Ltd. (IKEA India) decided to shut down its first small-format store in Mumbai. CEO Susanne Pulverer and her team made this decision in February 2024, citing design and location challenges. As the team planned for future growth, they needed to consider selecting store locations that balanced accessibility, urban density, and real estate costs while maintaining large retail spaces efficiently. And to succeed in the Indian market, IKEA India needed to tailor its products and marketing to Indian consumers, focusing on affordability, space efficiency, and cultural relevance. Strengthening its omnichannel strategy, integrating online and offline sales, and leveraging digital transformation would be crucial. How could IKEA India overcome price sensitivity, competition, regulations, and supply chain hurdles to thrive in India?

Learning Objectives

The case discussions can provide a well-rounded foundation for analyzing and strategizing IKEA India’s success in India’s evolving retail market. Upon completing the case and its accompanying assignment questions, students will be able to do the following:
  • Understand the structure and dynamics of the furniture retail industry in India.
  • Assess Indian consumer preferences regarding affordability, space constraints, and cultural relevance.
  • Understand the complexities of entering and scaling in an emerging market, including consumer behaviour, regulatory frameworks, and infrastructure challenges.
  • Analyze the benefits and potential risks of an omnichannel approach in the Indian market.
  • Evaluate key factors in selecting store locations and formats and balancing accessibility, urban density, and real estate costs.
  • Examine how digital transformation and e-commerce can enhance customer experience and drive IKEA India’s sales.
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Case Study: IKEA India: Expansion Strategy Dilemma (English version) | Ivey Publishing