Strategy, Enterprise and Innovation -2

STRATEGY, ENTERPRISE
AND INNOVATION -2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A key Model driver of innovation contributing to the success of IKEA.....................................3
Approaches used by IKEA Company..........................................................................................5
Competitive strategy of IKEA Company....................................................................................6
Application of “Blue Ocean Strategy” within IKEA company...................................................8
Four-Action Framework of Blue ocean strategy.........................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Strategy is an action which is generally adopted by the managers of the company in order to
achieve one or more goals and objectives. This report is based on the IKEA case study which
will discuss the appropriate strategic framework and approaches used by company in order to
shape its vision and business model. IKEA is a Swedish multinational home furniture retailer
which design and offer the ready to assemble furniture, kitchen and home accessories to its
customers (Jiang, Jia and Gong, 2018). The company on the basis of their strategic approach
such as VRIO analysis and Value chain analysis not only enter new markets but also achieve its
vision and mission. This report will also include the SWOT analysis in order to find out the
competitive strategy of IKEA at both business unit level and corporate level. IKEA is a company
which succeed even during and after the global financial crises of 2008. The company continued
to make increment in their revenues from 32.7 billion by 2015 to 50 billion in 2020. So, this
report will address the blue ocean strategy and how the application of this strategy further help
the management in IKEA’s success and growth. The report will also describe the key drivers and
innovation model which contribute to the success of IKEA.
MAIN BODY
A key Model driver of innovation contributing to the success of IKEA
The IKEA company uses the various model drivers of innovation it uses for the
organisational, team and the individual level with the help of this drives it create new innovative
ideas and implement it by that IKEA achieve the more success there are 4 PS of the innovation
model: plan, process, people, and priority are the key model drives of the innovation contributing
to the success of the IKEA (OSIPOV, and KRASOVA, 2017).
1. Priority
The first model of the driving the innovation is priority it is the important for the IKEA
to give topmost priority to the innovation if the IKEA want to making something innovative for
that they have to give the priority. Most of the organization not stay in the market for the longer
period and fail because of the innovation they not put organized effort for make priority to the
innovation. In the modern innovative world most of the organization not invest huge amount for
the innovation so also because of that it fail. The IKEA Company crush increases everyday
towards the innovation it pushing their team and the organization for the innovation so that

create something new and achieve the success (Akgun, and et.al., 2017 ). It pushes so that in the
future it stays in the market by proving every time something new to their customers. The duty of
the senior management of the IKEA to state focus , commitment and give topmost priority on
innovation so for that it properly coach, lead , maintain focus to achieve the overall goals.
2. Plan
For the innovation not only priority is enough the IKEA company senior management
have to make an appropriate and proper plan for how to work for the innovation. The particular
goal or objective have to make and set a proper way achieve goals in an innovation plan include
the strategies and objective. The proper plan should be prepare by the manager to reaching
specific objective and for that follow or apply appropriate strategies that help in innovation plan.
The plan is decided in advance so for the innovation there has a need of the plan so that easily
achieve the objective without the plan there have problem arise in the innovation.
3. People
The people of the IKEA Company are the key model drives of the innovation that play a
vital role in the success. People of the IKEA Company are the important asset and it very
responsible for the innovation. In the success of the organization the people of the company play
a main role so it is the responsibility of the manager carefully or appropriately select the
innovation team that have a creative and innovative state of the mind so the company should pay
more attention and provide some training to the selected team so their efficiency is more develop
and enhance by that it create more innovative ideas because the future of the IKEA Company in
the hand of the people (Flores, 2017). The right team is very essential for the innovation so the
leader of the organization should have an innovation skill or passion so that produce innovative
ideas so solve the obstacles that create hurdle in the innovation plan and process because if the
leader not have an innovative skills so it can’t lead their innovation team. If the team innovate
IKEA company innovation team create something innovative ideas or the products so the whole
team should be appreciated so they fell that organization give value to them and also the team
feel motivated by that it produce more innovative ideas that helps in the success of the IKEA
4. Process
The innovation process is the key driven model of an innovation that more contribute in
the success of the IKEA Company (Van Looy, 2018). The innovation process should be in
proper discipline and free-wheeling also have a clear or step by step innovation process. In the