IKEA to expand business in India after government allows 100% Foreign Direct Investment

Business expansion is essential for all companies. It is an evidence of how well a company is doing and is a sign of moving forward for a bigger goal. A huge and popular company, like IKEA is also plan to expand its business in India after government of India allows 100% Foreign Direct Investment (FDI) instead of 51% FDI in single-brand retail. Due to an increase in the percentage of FDI, this allows IKEA to expand its business using its own strengths, which are a strong global brand, the ideal of balancing between design, function, quality and price and low prices, which allow IKEA to attract and retain its customers. Moreover, IKEA may take the advantages of India, like large number of population and large number of people with low income to become its opportunities to expand its market share and increase its profit.

IKEA might has so many strengths and opportunities which can help it to be successful in India . However, there is also a point to be worried about. Besides its low prices, IKEA is also well known for its modernity. India is an undeveloped country, full of its own cultural and styles therefore it is crucial for IKEA to carefully do a market research in India and make use of its specialist marketing expertise before it decides to fully expand and operates in India.

Article:
http://news.xinhuanet.com/english2010/world/2011-11/27/c_131272967.htm