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International Buiness Of Ikea In Overseas Market

2393 words - 10 pages

INTERNATIONAL BUINESSRECOMMENDING AN OVERSEAS MARKETINTRODUCTION:In this report I will analyses the market of our host country and macro environmental factors which should be taken in consideration before starting a project. According to me India is a growing country for business and IKEA is a global furniture company. I am going to analysis IKEA's opportunity in India.In this report I will first study about the company's portfolio and about the home country which is Sweden. It's strengthen, weakness, their opportunity and threats in India. This report will give us a brief idea if the Indian market is appropriate or not for IKEA.EXECUTIVE SUMMARY:The following reports give us the basic knowledge about the company IKEA and various environment of Indian market.In first part of the report we have gather information about IKEA, its vision and mission. Its growth graph from past year's. Their business strategy in home country that is Sweden and around the world. IKEA is a furniture retail industry, so we have also studied about industrial structure and strategy. Second part we have done research of our host country India, its external environment, PESTAL analysis, Porter's 5 force analysis and SWOT analysis. The type of investment IKEA is planning to do.According to my analysis, it is profitable for IKEA to invest in India. The positive aspect are Friendly FDV policy, no strict legal rules and regulation, geographical condition is good and low labor cost. Ikea can import good easily and road and railway transportation service is good in India. The only problem IKEA will face is in social/cultural aspect, especially lack of service. It is hard to say if self-assembling furniture will be expected in India or not? India comes in second number in population with maximum working population and middle class. IKEA has many strength and opportunity which is compatible to India. The most important advantage of IKEA in India is that they have a manufacturing unit in India.After our external environmental analysis, I recommend IKEA to start their business in India and have good profitability. ORGANISATIONHISTORY:IKEA is an international furniture product company who sells flat pack household, office, children and outdoor furniture. The company is one of the largest furniture retailer company in the world. It started selling furniture in 1948 by Ingvar Kamprad. IKEA is named on Founder initial (IK) plus first letters of his farm Elmtoryd ( E ) and his village Agunnaryd ( A ) (Ikea 2014)IKEA comes under ownership structure due which it has independent and long term approach. According to Ingvar Kamprad, "I decided that the stock market was not an option for IKEA. I knew that only a long term perspective could secure our growth plans and I didn't want IKEA to become dependent on financial institution" (IKEA 2014).Vision: "To create a better everyday life for the many people." (IKEA 2014)IKEA's Business idea: "To offer a wide range of well designed, functional home...

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