Essays on IKEAs Innovative Process Case Study

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The paper "IKEA’ s Innovative Process" is a perfect example of a business case study. An organization is supposed to identify customer needs and tailor their production to meet customer requirements and ensure that value is attained. According to Heaven (2012, p. 25), value is one of the factors that must be considered in production and traces back to ancient times.   In order to achieve value creation, organizations must work hand in hand with their customers and innovate. In the opinion of Moreno (2016, p. 296), organizations should resort to value creation and innovation in order to achieve differentiation in the marketplace. The best and most efficient way to factor in and embrace innovation is to view it as an activity that brings about change (Ivarsson and Alvstam 2010, p.

740). This implies that an organization should aim at improving its products, services and ways of business operations by channeling resources into effective business ideas. However, many at times, many organizations fail to implement this idea, an idea that enables them to obtain a competitive advantage, besides achieving substantial growth in business operations. IKEA has, for a long, been innovative in its business operations (Lindqvist 2009, p.

50). Established in 1943, the company has experienced massive growth and is now a big multinational company boasting of operations in more than 42 nations globally. IKEA is known for its innovation strategies ranging from the introduction of new cheap customer-tailored furniture to its ability to effectively manage its wide span of business operations and a complex chain of suppliers to mention but a few. This report, therefore, aims at establishing IKEA’ s innovation strategies, their success and failures and why other organizations might not succeed in implementing IKEA’ s innovation strategies. IKEA’ s background IKEA is a privately owned, multinational company that designs and sells furniture, which includes beds, desks and other home appliances.

In fact, the company is ranked as the world’ s largest company that retails furniture. The company was founded in 1943 in Sweden by a 17-year-old boy called Ingvar Kamprad. In fact, the name IKEA is said to comprise of the founder’ s name initials (Ingvar Kamprad) and the place where he grew up (Elmtaryd) (Edvardsson and Enquist 2011, p.




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Heaven, D 2012, ‘Robot learns using IKEA-style instructions’, New Scientist, vol. 216, no. 2886, p. 24-26.

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Ivarsson, I. and Alvstam, C.G 2010, ‘Upgrading in global value-chains: A case study of technology-learning among IKEA-suppliers in China and Southeast Asia’, Journal of Economic Geography, vol. 11, no. 4, pp. 731–752.

Jonsson, P., Rudberg, M. and Holmberg, S 2013, ‘Centralized supply chain planning at IKEA’, Supply Chain Management: An International Journal, vol. 18, no. 3, pp. 337– 350.

Lindqvist, U 2009, ‘The cultural archive of the IKEA store’, Space and Culture, vol. 12, no. 1, pp. 43–62.

Moreno, S.G 2016, ‘The value of innovation under value-based pricing’, Value in Health, vol. 19, no. 3, p. A296.

Rask, M., Korsgaard, S. and Lauring, J 2010, ‘When international management meets diversity management: The case of IKEA’, European J. of International Management, vol. 4, no. 4, pp. 396-398.

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