Innovation Strategies of IKEA

Running head: INNOVATION STRATEGY
INNOVATION STRATEGY
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1INNOVATION STRATEGY
Executive Summary
This paper is going to talk about the innovation strategies that have been taken by the
company IKEA that has helped the company to get appreciation from the employees working
in the company and the consumers from all over the globe that has paved way for the success
of the company.

2INNOVATION STRATEGY
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Product innovation.................................................................................................................3
Business model innovation....................................................................................................5
Culture of innovation.............................................................................................................5
Innovation through the concepts............................................................................................7
Marketing innovation.............................................................................................................8
Structural innovation..............................................................................................................9
Conclusion..................................................................................................................................9

3INNOVATION STRATEGY
Introduction
Innovation is a factor that has become an important aspect of a business. Innovation
paves way for the competitive advantage of an organization or a company that helps the
organization be successful and generate profits in the market. Innovation is the process of
making changes and improvements to introduce a new and a better product or services in the
market to cater the target audience. This report talks about the company IKEA, a Swedish
furniture retailer that has been chosen for this paper and the innovation strategies that have
been implemented by company that has contributed to the success of the company.
Discussion
The company IKEA is the most popular and the top furniture retailer in the world.
The company has become a huge success because of the innovative products and the
innovative strategies that have been taken up by the company that has gathered a competitive
advantage for the company. The company has made several innovations strategies that
attracts and caters to the needs of the consumers that have garnered the company appreciation
in the market.
Product innovation
IKEA is a furniture retailer that believes in introducing high innovative products that
are unique and different from other existing products in the market. The innovation strategy
followed by IKEA is sustaining innovation. The company aims on making innovations of the
furniture that already exist in the market and create value networks. They believe in
improving and making innovations on the existing products that are in the market rather than
creating a network of new value (Khamis, 2016).
IKEA is a company that is currently in demand because of the innovative products
that have been offered to the consumers. The designer of the company Gillis Lundgren had