Question

1. 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)
2. Utilizing relevant analytical tools (e.g. Value chain, VRIN), critically analyze IKEA’s ownership advantages (Os), classifying them into Oa; Ot, and Oi. (20 marks)
3. Internalization advantages refer to the ability of a firm to leverage its ownership advantages abroad (e.g. the transfer of intangible assets, and knowledge), how can IKEA internalize its ownership advantages (Os identified in Q2) into India? (20 marks)
4. 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-cultural differences between Sweden and India. (20 marks)
5. 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)