IKEA: Black book Project

Here’s how to write a Blackbook (sample) project on IKEA.

Introduction

Every company goes through different phases in its lifecycle and may adopt different strategies depending on the stage it is in. International expansion is a strategy used by several big companies, that wish to target more markets in order to seek further growth and revenues. IKEA is a multinational company that makes furniture, home furnishings, and useful household items. The company is already present in several countries and decided to enter India a few years back.

Problem Statement

MNC’s that succeed in one country may not succeed in another country with the same set of strategies. IKEA is an MNC and present in several countries. There is a need to understand the reasons why it chose India for expansion and the challenges faced by IKEA in India compared to other countries and how it overcame the challenges.

Research Questions

This research project will try to understand the reasons for its expansion in India and will study the strategies that it has used to expand in India. It will also make suitable recommendations.

• Why are emerging countries like India important for IKEA’s expansion plan?
• What are the effective strategies used by IKEA to expand in India and to reach out to the target segment/s?

Research Objectives

The main objectives of this research work include:

• Understand the reasons that prompt MNCs to expand in other geographical location.
• The marketing strategies used by MNCs in foreign markets considering the uniqueness of those markets.

Methodology

This research work will use primary as well as secondary research to gather information and to answer the various research questions.

Primary research will include survey questionnaire of people who have experienced shopping in IKEA. Secondary research will include going through news articles, journals and books to collect more information related to the various research objectives.

Literature Review

Most fast-growing companies try to take their operations overseas into lucrative foreign markets, once they are established in their home country. Through international expansion, these businesses are seeking to reach the next level of growth and expanding in other countries is one way to do that. It helps a company get access to new markets and also makes their growth more sustainable (Hohenthal et al., 2003).

The Ansoff Matrix, also known as the Product/Market Expansion Grid, is a tool commonly used by firms to plan their growth strategies. The matrix reveals four strategies that a firm can use to grow. One of the market strategies is Market Development, which focuses on entering a new market using the firm’s existing products (Hussain et al., 2013). Firms can adopt one of several modes in order to expand in a country. The first part of the study will take a look at theories related to international expansion and marketing strategies. The second part will then study how IKEA has used these to expand in India.

Bibliography

Hohenthal, J., Johanson, J., & Johanson, M. (2003). Market discovery and the international expansion of the firm. International Business Review, 12(6), 659-672.

Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

IKEA plans to open both small and large format stores in India’s bigger cities

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IKEA- The new master of Glocalization in India?

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