Explain the business plan of IKEA and the essential components in a franchise business of the company
The business model made by the IKEA targeted on providing the customers with multiple offering in furniture which is trendy and affordable. IKEA is an affordable brand, and such a model is famous and at rising.
A franchise business of IKEA is operated under Inter IKEA System BV. It takes care of all the global franchise of IKEA. IKEA tries to partner with different other furniture outlets to open the warehouses in their respective cities and countries under the franchise model. The franchise system supports in the development of the brand, to open new areas for IKEA, to innovate a brand, to put ideas for a new product, etc. the expansion through franchise helps to be a part of multi-brand retailing and gauging the market potential for the new place. Also, it helps in expanding the new market, keeping the sustainability, people and the environment in mind.