JIMS 8M The Journal Of Indian Management And Strategy

The IKEA was started by “Ingvar Kamprad” In 1943. He started IKEA when he was 17 in Sweden. The first store was opened in Norway outside Sweden in 1963 followed by Denmark in 19692. Subsequently, the company expanded its branches across the world. Due to government policies, IKEA was not very keen to start a business in India. Later, the Indian government allowed 100% foreign direct investment for single-brand retail. In 2018, the first store of IKEA was opened in Hyderabad, India¹.

IKEA believed that the heart of the business is “Equality, Diversity and Inclusion”³. When IKEA was started in India, the objective of the company was to give equal opportunity to all employees. For improving the diverse culture, Mr. Peter Betzel, CEO of Indian operation said diversity was an integral part of IKEA’S DNA⁴. In India, inclusive culture was the highest priority at the workplace. So that, all the employees were valued, empowered, appreciated and motivated for their unique contribution⁵. Already, IKEA started a couple of stores in India. In addition, the company had a plan to start 2 more stores in Noida and Bangalore. Next 7 years, the company’s objective would be to open 30 stores across India⁶. Based on the corporate strategy theory, the company was doing well. However, IKEA had to face a lot of challenges such as heavy competition, policy regulations of India, customers’ minds differed from other countries, the rapid expansion of the branches and high land cost⁷. Having said that, the company had a plan to expand its branches across India. Moreover, the company’s important objective was to maintain a gender diversity ratio. To achieve the same, the company needs more women employees. Recruiting, training and keeping women employees on the board is a huge challenge In India. So, the challenges are huge; how is IKEA going to take all these challenges in the future? would it be a smooth journey for IKEA in India?