Read The Attached Ikea Case Study And Answer The 2 Follow-Up
Read The Attached Case Study From Ikea And Answer the 2 Following Ques
Read the attached case study from Ikea and answer the 2 following questions. IKEA’s model of purchasing furniture that is flat-packed and then assembling it yourself at home is a new and different way of doing things for consumers in many countries. a. In terms of innovations what type of innovation would this be considered? b. Does your answer for part a change if the furniture is delivered and assembled or installed by IKEA? At least two (2) sources related to the case. Please cite the resources in APA format.
Paper For Above instruction
The case study on IKEA showcases a distinctive approach to furniture retailing that revolutionized consumer behavior and supply chain management. IKEA's innovative business model primarily involves offering flat-packed furniture that consumers can purchase at affordable prices and assemble at home, challenging traditional furniture retailing practices. This model comprises various types of innovations, from product to business model innovation, which have contributed significantly to IKEA’s success and differentiation in the global market.
a. The type of innovation involved in IKEA’s flat-pack furniture model
From an innovation management perspective, IKEA’s approach is predominantly a form of business model innovation. Business model innovation involves redefining the way a company creates, delivers, and captures value. IKEA’s strategy reimagines traditional furniture sales through a combination of product design, supply chain management, and customer engagement. The flat-pack concept reduces transportation and storage costs and enables the company to pass savings onto consumers, making furniture more accessible and affordable.
Furthermore, it exhibits elements of product innovation, as IKEA designs furniture that is easy to disassemble, pack, and reassemble without compromising quality or aesthetics. The innovation also extends to process innovation in manufacturing and logistics, optimizing the entire supply chain from suppliers to consumers. Overall, IKEA’s flat-pack furniture exemplifies radical innovation by radically changing how furniture is designed, manufactured, distributed, and sold, disrupting traditional retail models (Tidd & Bessant, 2018).
b. Does the answer change if IKEA delivers and assembles or installs the furniture?
If IKEA takes on the role of delivering and assembling or installing furniture for consumers, the nature of the innovation shifts significantly. Originally, the core innovation was in the design of the product and the business model facilitating self-assembly. When the company assumes the responsibility for delivery and assembly, the innovation moves toward service innovation—creating additional value through enhanced customer service.
This change aligns IKEA more with incremental or process innovation. It transforms from a primarily product and business model innovator into a provider of comprehensive, end-to-end furniture solutions. The shift reduces the perceived complexity of assembly for consumers, potentially expanding market reach particularly among customers less inclined or less able to assemble furniture themselves.
In essence, the fundamental nature of the original innovation—an innovative business model centered on self-assembly—becomes complemented by an innovation in service delivery when IKEA begins providing delivery and assembly services. Nevertheless, the initial disruptive element remains the same: reimagining the furniture retail process to provide affordable, easy-to-ship products in flat-pack form. Thus, while the focus of the innovation evolves into service enhancement, the primary innovation concept—disrupting traditional furniture retail—remains fundamentally intact (Chesbrough, 2010).
References
Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43(2-3), 354-363.
Tidd, J., & Bessant, J. (2018). Managing Innovation: Integrating Technological, Market and Organizational Change (6th ed.). Wiley.