International Corporate-Level Strategy Harvard Case Solution & Analysis


IKEA is the world’s leading furniture retailing company having apresence in the 44 countries worldwide. However, the company was considering to have anexpansion to the India due to the future growth in the country in the furniture industry. Meanwhile, the Indian market is very complicated and fragmented. Hence the company should have proper strategies to deal with issues identified in the case; location; space, rent; facilities; product range; regulatory rules and regulations. Furthermore, the site of the company should be somehow away from the primary markets, but should not be so far away that customers ignore the store, then it would get aproper place for the stores at low cost. Similarly, the Indian market has different customers having different lifestyles, background, education, and class, and income level. So, from the future perspective company should offer products by focusing on the market as whole, not just a part of the market.

Introduction to IKEA

IKEA is world’s largest furniture retailer founded by a 17-year-old Ingvar Kamprad in 1943. The company belongs to the Sweden in origin. By 2000, it became an only largest retail furniture company in the Sweden and throughout the world that started to offer abroad range of productswith unique designs, fabulous lifestyles, and attractive innovations.

Meanwhile, being at the stage of growth company went growing globally with its unique way of thedo-it-yourself model, and having restaurants, and cafes in its stores worldwide, and children play area as well. It was a good innovation in the furniture industry worldwide to let customers make choice of their own among the variety of products available throughout the IKEA stores worldwide.

International Corporate-Level Strategy Harvard Case Solution & Analysis

Furthermore, by the end of the 2012 company has 298 stores in the 26 countries, and it has employed 139000 peoples into these stores worldwide. On the other hand, the IKEA group had doubled its sales to EUR 27.6 billion since last decade. It also has anexpansion plan to doubleits sales by 2020 and open 20-25 stores from 2015 again.Similarly, the company has been offering 12,000 products which represented its entire range throughout its global stores worldwide.

Being the one of a largest retail furniture company. It has been structured in such a complicated way that no one can take over the company although the company was a family business. But Kamprad transferred100% holdings of the company to Stichting INGKA Foundation a non-profit philanthropy organization focusing on the social issues, and causes, and helping poor peoples.The intention was to avoid any takeover and save some taxes as well. However, the IKEA group has been on track to expand in the Asian market due to the future growth of the market.(ApacMarket, 2015) The most attractive target for the company was India having large customers, belonging to the different backgrounds, and different needs as well.(Samad, 2015)


IKEA group is largest furniture retail company in the world. It has deep roots, expertise in innovations in the furniture industry, and is known for its most eligible and attractive products being unique in nature, style, and cheap in price...................

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