IKEA
IKEA in India: An Opportunity for Success
James Baskerville, Irina Damianoff, Jacquelynn Mantel, and Teressa Paulus
Indiana Wesleyan University
Assignment ADM510
Team Project Paper
Team Project Paper Rubric: The Team Project report was graded according to the rubric below
Criteria
Points Possible
Point Achieved
Spelling, grammar and mechanics - Excellent
15
Description of the Organization – good detail
20
Opportunities for Global Expansion – great research
30
Challenges to Global Expansion
30
Expansion Options and Recommendations – team did a great job with the analysis and support
30
APA citations & references page
15
TOTAL
140
IKEA in India: An Opportunity for Success
IKEA has become one of the most recognized and profitable home furnishing brands throughout the world. The name “IKEA” is representative of its Swedish beginnings. The “I” and the “K” stand for the initials of the company’s founder’s, Ingvar Kamprand, and the “E” and the “A,” respectively, stand for the first letter of the farm (Elmtaryd) and village (Agunnaryd” where Kamprand grew up (Lewis, 2005). IKEA’s decades-long success has inspired imitators, but so far, none have been able to achieve the same level of popularity. The numbers that IKEA generates are impressive. A quick look shows that approximately one million customers visit an IKEA store each day, with the average customer making 3.5 visits per year; globally, IKEA stores have roughly 365 million visitors per year; there is a gender slant to their customer demographics, with 60% being female; IKEA employs approximately 84,000 employees; and an average of 145 million catalogs are printed in 48 editions and 25 languages (Lewis, 2005). IKEA has shown no signs of slowing its growth, despite the current global economic slowdown. In fact, its appeal appears to have been strengthened, perhaps due to the low-cost of its product. IKEA’s corporate strategy is focused on long-term
James Baskerville, Irina Damianoff, Jacquelynn Mantel, and Teressa Paulus
Indiana Wesleyan University
Assignment ADM510
Team Project Paper
Team Project Paper Rubric: The Team Project report was graded according to the rubric below
Criteria
Points Possible
Point Achieved
Spelling, grammar and mechanics - Excellent
15
Description of the Organization – good detail
20
Opportunities for Global Expansion – great research
30
Challenges to Global Expansion
30
Expansion Options and Recommendations – team did a great job with the analysis and support
30
APA citations & references page
15
TOTAL
140
IKEA in India: An Opportunity for Success
IKEA has become one of the most recognized and profitable home furnishing brands throughout the world. The name “IKEA” is representative of its Swedish beginnings. The “I” and the “K” stand for the initials of the company’s founder’s, Ingvar Kamprand, and the “E” and the “A,” respectively, stand for the first letter of the farm (Elmtaryd) and village (Agunnaryd” where Kamprand grew up (Lewis, 2005). IKEA’s decades-long success has inspired imitators, but so far, none have been able to achieve the same level of popularity. The numbers that IKEA generates are impressive. A quick look shows that approximately one million customers visit an IKEA store each day, with the average customer making 3.5 visits per year; globally, IKEA stores have roughly 365 million visitors per year; there is a gender slant to their customer demographics, with 60% being female; IKEA employs approximately 84,000 employees; and an average of 145 million catalogs are printed in 48 editions and 25 languages (Lewis, 2005). IKEA has shown no signs of slowing its growth, despite the current global economic slowdown. In fact, its appeal appears to have been strengthened, perhaps due to the low-cost of its product. IKEA’s corporate strategy is focused on long-term
References: Baraldi, E. (2008). Strategy in industrial networks: experiences from IKEA. California Management Review 50(4), 99-126. Retrieved from Business Source Complete. Business.Gov.IN. (n.d.). Retrieved November 3, 2010, from http://business.gov.in/legal_aspects/index.php Business-in-Asia.com Economy Watch. (n.d.). Retrieved October 23, 2010, from http://www.economywatch.com/indianeconomy/india-economy-statistics.html Hofstede, G IKEA Group. (n.d.). The never ending story, sustainability report 2009. Retrieved October 27, 2010, from http://www.ikea.com/ms/en_US/about_ikea/our_responsibility/index.html IKEA Group. (n.d). Annual report: yearly summary FY09. Retrieved October 27, 2010, from http://www.ikea.com/ms/en_US/about_ikea/pdf/Welcome_inside_2010.pdf IndianIndustry.com. (n.d.). Retrieved November 2, 2010, from http://www.indianindustry.com/trade-information/trade-agreements.html Kling, K., and Goteman, I. (2003). IKEA CEO Anders Dahlvig on international growth and IKEA’s unique corporate culture and brand identity. Academy of Management Executive 17(1), 31-37. Retrieved from Business Source Complete. Kushvaha, A. (2009). Role of entrepreneurship in India’s future economic development. Economic Challenger. Retrieved from LexisNexis Academic. Lewis, E. (2005). Great IKEA! A brand for all the people. London: Cyan Communication Limited. Miller, P. M. (2004). IKEA with Chinese characteristics. China Business Review 31(4), 36-38. Retrieved from Business Source Complete. Narsis, I. (2010). An analysis of FDI inflows in service sectors and its impact on Indian economy. Economic Challenger. Retrieved from LexisNexis Academic. Paul, P., Roy, A., & Mukhopadhyay, K Singh, J. P. (1990). Managerial culture and work related values in India. Organizational Studies 11(1), 75-101. Retrieved from Business Source Premier. Wei, L. (2007). IKEA in China: facing dilemmas in an emerging economy. Asian Case Research Journal 11(1), 1-21. Retrieved from Business Source Complete.