Based on the case of IKEA entering the Indian market, students are required to address the 5 questions below
- Considering the multi-faceted drivers of FDI location choice (e.g. national-level, industry-level and firm-level), what location-specific advantages could IKEA
exploit from India? (20 marks) - Utilising relevant analytical tools (e.g. Value chain, VRIN), critically analyse IKEA’s ownership advantages (Os), classifying them into Oa; Ot and Oi. (20
marks) - Internalisation advantages refer to the ability of a firm to leverage its ownership advantages abroad (e.g. the transfer of intangible assets, knowledge), how
can IKEA internalise its ownership advantages (Os identified in Q2) into India? (20 marks) - With reference to national culture frameworks (e.g. Hofstede, GLOBE, High-context vs low-context etc.), critically discuss both barriers and competitive
advantages IKEA faces by considering the cross - culture differences between Sweden and India. (20 marks) - Drawing upon relevant innovation literature, critically discuss what type of innovation strategy IKEA adopts, and what benefits and challenges Ikea could
face by building its local innovation networks in India? (20 marks)