PESTEL ANALYSIS OF IKEA ENTERING INTO INDIAN MARKET

INTRODUCTION

VISION: The IKEA’s vision globally is to create a better everyday life for the many.
MISSION:- Ikea's mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them (IKEA 1994).

IKEA was founded in 1943 by Ingvar Kamprad and has turned into an international furniture retailer, which specializes in stylish but inexpensive Scandinavian designed furniture. IKEA is however owned by a foundation by the Kamprad family. Since 1943, Ikea has expanded its operations steadily in many countries. IKEA originally started by selling picture frames, wallets, pens, watches, table runners, jewelry, and nylon stockings etc. Furniture was first added in the year 1948 and IKEA started manufacturing its own furniture since 1955, providing furniture that could be self-assembled at relatively low cost. Since then, the name has been synonymous with self-assembled furniture.
In August 2008 the IKEA group had 253 stores in 24 countries. IKEA sales reached 21.2 billion Euros in 2008 showing an increase of 7%. The biggest sales countries are Germany, USA, France, UK and Sweden. it has also opened its stores in India. Swedish company IKEA to invest $600 million in India. | |
IKEA carries a range of 9,500 products, including home furniture and accessories. Low prices are one of the cornerstones of the IKEA concept and help to make customers want to buy from IKEA. Its success in the retail industry is due to the fact that the company has a vast experience in the retail market, product differentiation, and cost leadership. Their unique concept is that furniture is sold in kits