Subject category:
Marketing
Published in:
2024
Length: 14 pages
Data source: Published sources
Abstract
IKEA is an international furniture brand with 260 stores worldwide, with a vision of creating a better everyday life for many people and aims to have a positive impact on the world. As part of its global expansion strategy, IKEA entered the Indian market in 2018, with a plan to open 25 stores across different parts of India by 2025. The retailer brand conducted market research on Indian consumers before entering the Indian market. IKEA adopted the strategy of 'glocalization', where global brands localize their products to accommodate local consumers. As part of this strategy, the retailer visited local consumers' houses to understand their lifestyles and furniture preferences, and identified food as ten times more important to Indian customers. Despite pre-entry research and glocalization strategies, IKEA failed to grow and expand in India. This case study focuses on how IKEA can develop its glocalization strategy and achieve sustainable business growth in India. This case study aims to help students identify the challenges that IKEA faces in the Indian market and proposes alternative solutions through in-class discussions.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Time period
The events covered by this case took place in 2023.Geographical setting
Region:
Asia
Country:
India
Location:
Hyderabad, Telangana, India
Featured company
IKEA
Employees:
1001-5000
Type:
Privately held
Industry:
Furniture
Other keywords:
Furniture; Home decors; Kitchen accessories
About
Abstract
IKEA is an international furniture brand with 260 stores worldwide, with a vision of creating a better everyday life for many people and aims to have a positive impact on the world. As part of its global expansion strategy, IKEA entered the Indian market in 2018, with a plan to open 25 stores across different parts of India by 2025. The retailer brand conducted market research on Indian consumers before entering the Indian market. IKEA adopted the strategy of 'glocalization', where global brands localize their products to accommodate local consumers. As part of this strategy, the retailer visited local consumers' houses to understand their lifestyles and furniture preferences, and identified food as ten times more important to Indian customers. Despite pre-entry research and glocalization strategies, IKEA failed to grow and expand in India. This case study focuses on how IKEA can develop its glocalization strategy and achieve sustainable business growth in India. This case study aims to help students identify the challenges that IKEA faces in the Indian market and proposes alternative solutions through in-class discussions.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Settings
Time period
The events covered by this case took place in 2023.Geographical setting
Region:
Asia
Country:
India
Location:
Hyderabad, Telangana, India
Featured company
IKEA
Employees:
1001-5000
Type:
Privately held
Industry:
Furniture
Other keywords:
Furniture; Home decors; Kitchen accessories