Ikea India
THE RETAILFORMULA FOR IKEA IN INDIA
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Names and Relation numbers Group 12:
Julian Hoffbauer: 86282
Anwar Mohi-ud-din: 66913
Sonja Bogacki: 83353
Susanne van Scherrenburg: 78940
Lecturer
Mr. Oude Lohuis
Mr. Boels
Mrs. Wedrychowicz
Mrs. Kooijenga
Date
11/06/2009
EXECUTIVE SUMMARY
The following report scans the various environments of India and includes a retail formula to determine if an expansion of IKEA to India would be preferable. It will be summarized in a short conclusion at the end which will include our final recommendation.
In the first part we analyzed that India is the second most populated country in the world with about 1.2 billion inhabitants. Ports, Airports and a sufficient railway system are the basis for the countries decent infrastructure. Additionally, India is the largest democracy in the world and has a very stable political environment. Although, India ranks 122nd in the world when it comes to the ease of doing business, one can say that the general economic environment is favorable for IKEA. There has been constant GDP growth in the last couple of years and the Indian rupee is relatively stable as well.
India’s society has been influenced by a very strong caste system in the past which prevented many people from freely choosing what work or business to enter. This has changed and urban regions tend to be more liberal concerning initial cast affiliation than the rural areas. As far as the technological environment is concerned, India’s population is increasingly connected to the Internet but still behind in the international comparison. There are 81 million Internet users and approximately 362 million mobile phones in use. The Indian climate is quiet diverse due to the country’s enormous size. As there are colder and warmer regions, the consumption behavior can differ on a regional level due to the diverse climate. The most important part of the legal environment in India is the
[pic][pic]
Names and Relation numbers Group 12:
Julian Hoffbauer: 86282
Anwar Mohi-ud-din: 66913
Sonja Bogacki: 83353
Susanne van Scherrenburg: 78940
Lecturer
Mr. Oude Lohuis
Mr. Boels
Mrs. Wedrychowicz
Mrs. Kooijenga
Date
11/06/2009
EXECUTIVE SUMMARY
The following report scans the various environments of India and includes a retail formula to determine if an expansion of IKEA to India would be preferable. It will be summarized in a short conclusion at the end which will include our final recommendation.
In the first part we analyzed that India is the second most populated country in the world with about 1.2 billion inhabitants. Ports, Airports and a sufficient railway system are the basis for the countries decent infrastructure. Additionally, India is the largest democracy in the world and has a very stable political environment. Although, India ranks 122nd in the world when it comes to the ease of doing business, one can say that the general economic environment is favorable for IKEA. There has been constant GDP growth in the last couple of years and the Indian rupee is relatively stable as well.
India’s society has been influenced by a very strong caste system in the past which prevented many people from freely choosing what work or business to enter. This has changed and urban regions tend to be more liberal concerning initial cast affiliation than the rural areas. As far as the technological environment is concerned, India’s population is increasingly connected to the Internet but still behind in the international comparison. There are 81 million Internet users and approximately 362 million mobile phones in use. The Indian climate is quiet diverse due to the country’s enormous size. As there are colder and warmer regions, the consumption behavior can differ on a regional level due to the diverse climate. The most important part of the legal environment in India is the