Analysis of IKEA's Strategy in Facing Institutional and Cultural Differences in Target Countries

This research examines IKEA's international expansion policy through the Resource-Based View (RBV) framework. Its main objective is to analyze the utilization of the company's internal strengths in addressing institutional regulatory differences and cultural diversity among consumers in the Indian and Indonesian markets. The analysis shows that IKEA's foundation for success lies in its internal resources, such as modular product design, efficient global supply chain, and distinctive corporate culture. In India, strategic adaptation focuses on strengthening the local supply chain with a sourcing increase target of up to 50% by 2030, supported by partnerships with over 45 domestic suppliers. Meanwhile, in Indonesia, cultural adjustment is prominent through obtaining MUI halal certification for all its restaurant services. This study concludes that the key strategy of IKEA is to balance global capabilities with adaptation that is sensitive to the local context.