Developing a New Product for IKEA: Production of Digital Television

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Entrepreneurship and Venture Planning
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Table of Contents
Introduction.................................................................................................................... 3
Projection and the Product Life Cycle.................................................................................... 3
Environmental Dimension.................................................................................................. 3
Economic Dimension........................................................................................................ 3
Social Dimension............................................................................................................. 4
Value Proposition............................................................................................................ 4
Competitive Advantage..................................................................................................... 5
Porter’s 5 Forces.............................................................................................................. 5
Customer Decision making and Acquisition............................................................................ 6
Circular Journey of Decision Making.................................................................................... 7
Conclusion..................................................................................................................... 7
Bibliography.................................................................................................................. 8

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Introduction
IKEA is the largest furniture retailer globally. The organization was founded in 1943 and
its success in the industry is attributed to its experience in product differentiation, retail market as
well as cost leadership. In the design and development process of a new product, the firm begins
by understanding the daily needs of its customers, particularly the needs of the individuals with
limited living spaces and income. By so doing, IKEA has been successful in offering its clientele
well-designed and functional products at low prices that most individuals can afford. This report
aims at developing a new product, - production of digital television- for IKEA. The parts of the
report include a projection of the product life cycle, value proposition, competitive advantage,
customer decision making and conclusion, including a summary and conclusion.
Projection and the Product Life Cycle
Environmental Dimension
The life cycle perspective of the new product should be such that it adheres to the
environmental dimensions of sustainability. IKEA can manufacture digital television for its
customers by taking into account environmental dimensions such as reducing the use of
hazardous materials in its new product (Hiatt and Sine, 2014, pp.775). Such measures include
developing OLED TVs that are mercury-free, making use of PVC-free internal cables, as well as
BFR-free parts.
Economic Dimension
The product life cycle under this dimension is concerned with the cost and performance
of the digital TV. IKEA is famous across the globe for producing home products that are cost-
friendly and of good quality. With specialized designers and manufacturers at its factory floor,
best raw materials are scrutinized, aimed at lowering production costs (El Ebrashi, 2013,