INTERNATIONAL BUSINESS STRATEGY FOR IKEA INDIA

The approach of such a market requires IKEA India to undertake the perspective of being an international brand but equally differentiate their product to suit the local consumer expectations. The company should take up a transnational, multi-domestic and global approach aimed at enhancing both global efficiency and local responsiveness to the brand. The paper will develop an understanding on the how the approaches enhance the competitiveness of the brand in a challenging Indian market orientation. Introduction The progression of business over time has made it imperative for organizations to consistently focus on initiatives that will enhance their performance in resonance with consumers’ expectations. An understanding of the IKEA business, as an international company in Europe dealing in the sale of furniture, home accessories and lighting is pivotal when it comes to structuring a competent international strategy (Ehsan Ullah, Karlsson, and Dada Olanrewaju, 2016, 14).

The strategy ranks highly in ensuring local responsiveness but does not attain global integration to enhance the exponential growth of the brand into the international market. A multi-dimension strategy utilizes the centralization model of decision making that will offer the IKEA India managers autonomy to enhance their growth strategy and responding to local markets. The approach should ensure it combats the challenges of entry into a foreign market coupled with difficulties of cultural differences, administrative, economic and geographic variances. Global Approach A global approach thrives on the desire to create global efficiencies through fulfilling the universal demand by better understanding the Indian market consumer expectations. A global strategy delivers quality input when it comes to improving the capacity of IKEA India to create global integration but fails to effectively influence the local consumer attitudes and preferences.

The approach delivers both global efficiencies as well as local responsiveness to ensure IKEA India manages to initiate a business model that better serves the market interests (Giesen, Berman, Bell, and Blitz, 2007, 30). A transnational strategy delivers an incredible capacity for IKEA India to attain global integration and equally attain a higher level of influencing the local market into consuming the set of their product lines. A marketing strategy that operates on a transnational strategy primarily identifies each market segment as unique and seeks to initiate a model that suits international standards as well as appreciate the local tastes and preferences. A transnational strategy is premised on the need to achieve both decentralization and centralization through operating on a system with competing goals.

The strategy for IKEA India requires the approach to help them achieve global coordination and control as well as attain local flexibility. Consequently, based on the customers and the kind of products IKEA offers to the market requires the development of diversified product lines and customer oriented strategic measures. The creation of a unique strategy focussing on customer satisfaction will enhance its relevance and continued existence in the global market segments. The numbers of customers they serve are so many that they run the risk of experiencing dissatisfaction based on their varied tastes and preferences (Campbell, Edgar & Stonehouse, 2011, 52). Consumer dissatisfaction courts a lot of complaints, making it imperative for IKEA India to take time and involve experts in planning the best possible strategies that will enable the business to achieve the desired goals and objectives.

The IKEA mission which suggests that sustainability should not be a luxury for a few but affordable for the majority, should provide the benchmark upon which suitable strategies are determined and executed for the aim of ensuring IKEA’s vision is realized. The initiative will end up providing the business with the resources necessary to expand to other regions (Teece, 2011, 27). The application of an international strategy should be based on the understanding of the different situations coupling markets to ensure that global integration is achieved as well as taking cognizant of the local market needs. The close attention to the local Indian market will make it possible for the business to organize their strategic framework to attain better performance to edge out available competition.

The competitive pressure requires the organization to implement a model focused on attaining a comparative advantage towards laying the platform for exponential growth. Conclusion In conclusion, based on the merits illustrated in the different international market approaches, it’s evident that a transnational strategy can enhance the growth of IKEA India. , and Hesterly, W. S.  Strategic management and competitive advantage: Concepts. Englewood Cliffs, NJ: Prentice Hall. Campbell, D. , Berman, S. J. , Bell, R. and Blitz, A. Three ways to successfully innovate your business model. Strategic Management, Pearson Mintzberg Henry & Quinn James Brian, 1992. The Strategy Process, Prentice-Hall International Editions Nagle, T. T. , Hogan, J. and Zale, J. In Enhancing Competitive Advantage With Dynamic Management and Engineering (pp. IGI Global. Porter, M. E.