Essays on IKEA Indian Market Venture Case Study

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The paper "IKEA Indian Market Venture" Is a good example of a Marketing Case Study. Globalization and expansion into new markets have in the last two decades as an attractive business management approach. In this regard, a majority of the organizations have increasingly invested in the global foreign markets in a bid to increase their markets as well as expand their market bases. Arguments developed on the merits of globalization and business operations internationalization argue that besides expanding organizational markets, globalization enhances product lifecycles extension. However, in venturing these new markets organizations face challenges ranging from economic, social and political.

Therefore, prior to venturing onto the foreign markets, it is imperative that organizations critically asses the market conditions and requirements against their internal capabilities and potentials (Bogardus, 2009, p. 75). In particular, this essay reviews IKEA's organization’ s intention to venture into the Indian market. IKEA is a globally recognized furniture designer and developer, services provider on home management as well as office spacing and arrangement services. Over the years, the Switzerland based corporation has established its global presence in USA, Europe, and Asia.

In Asia, its operations are in Russia, China, and Japan. However, its expansion plan to India was thwarted in 2009, when the government refused to increase the 51% ownership cap for foreigners on foreign branded products. Nevertheless, recent analysis reveals the market as attractive. This essay evaluates the viability of an Indian venture against the organizational internal capabilities, consequently offering strategic recommendations. 1.0 Organizational Marketing and SWOT Analysis 1.1 Marketing Strategy The organization applies a unique marketing strategy in its operations. A review of the organizational business concept illustrates that the organization has minimal advertisement campaigns.

In this regard, unlike other market players who rely on advertisements as a key marketing tool, the organization relies on consumer satisfaction and loyalty to increase its market base. In this regard, the corporation has over the years relied on word of mouth and its limited catalogs to expand its market influence. As such, the organization has developed an efficient customer case and service platform through which the satisfaction of its consumers is guaranteed. Consequently, satisfied consumers recommend the organization and its products to peers and friends, subsequently expanding its consumer base.

Moreover, the organization supplies its catalogs for free to potential consumers such as individuals as well as organizations within the organizational warehouse and stores vicinity. For instance, in 2003, the organizational 365 pages printed catalog reached 130 million people, making it’ s the world’ s largest printed publication distributed for free. 1.2 SWOT Analysis In order to objectively examine and evaluate the functioning, suitability, and capability of organizational internal systems, a SWOT analysis is imperative. Brooks, Heffner, and Henderson (2014, p. 23) argued that the adoption of this analysis tools enhances a critical analysis of organizational systems, providing a review of its strengths and challenges, an important information base for strategic decision making. 1.2.1 Strengths On one hand, a strengths analysis on IKEA Company establishes its low pricing market approach.

An organizational concept analysis establishes that the corporation through its adoption of the consumers as co-producers approach has significantly reduced its production costs. As such, consumers are required to transport and assemble the products, significantly reducing on the logistical and after-sales services costs. For instance, the organizational venture in Germany through its German subsidiary IKEA GmbH gained increased market influence against local competition due to its low costing approach.

In addition, organizational operations have strength in their efficient supply chain management. The case study evidence that through its efficient supply chain management as well as the development of appropriate supplier relationships, the organization has attained a low cost and risk internationalization approach, where it establishes links rather than outlets in new markets.

Reference

Bogardus, A. M. 2009, PHR/SPHR: Professional in Human Resources certification study guide, Wiley Publishers, Indianapolis, India.

Brooks, G., Heffner, A. & Henderson, D. 2014, "A SWOT Analysis of Competitive Knowledge from Social Media for A Small Start-Up Business", the Review of Business Information Systems (Online), vol. 18, no. 1, pp. 23.

Crain, D.W. & Abraham, S. 2008, "Using value-chain analysis to discover customers' strategic needs", Strategy & Leadership, vol. 36, no. 4, pp. 29-39.

IKEA, 2014, Home and Regional View. [Online] Available at [Accessed August 1, 2014].

Kaviraj, S. 2005, "On the enchantment of the state: Indian thought on the role of the state in the narrative of modernity", Archives Européennes de Sociologie, vol. 46, no. 2, pp. 263-296.

Mohan-Neill, S. 2006, "An Analysis of Factors Which Influence Small Businesses' Decision to Have a Website and to Conduct Online Selling", Journal of American Academy of Business, Cambridge, vol. 8, no. 2, pp. 204-209.

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