IKEA: Strategies for New Product Development and Market Expansion

This report analyzes IKEA's strategies for developing new products, particularly focusing on the introduction of online food selling in the UK market. It identifies the challenge of high employee turnover and its negative impact on the business. The report explores the scope of new product development, including internet grocery shopping and quick online success. It examines solutions using a commercial funnel, matching goals with resources, and identifying risks. Leadership challenges and motivational drives are discussed, along with value measurement using key performance indicators. The report also covers tools and techniques for testing new products and protecting intellectual property rights through patents, trademarks, and trade secrets. The conclusion summarizes the key findings and emphasizes the importance of addressing challenges to achieve business effectiveness.

Introduction
In order to develop new product and services, it can be stated that the IKEA face issue of
high turnover in the business. As a result, it creates negative impact on results on their products
and customer attraction as well. In this context, it can be stated that idea also need to determine
new product solution also need to maintained for existing issue and problem. With using
commercial funnel, goals matching with different resources to assess risks and face leadership
challenges.
Background of the company and problem
IKEA began operations and functions from 1926 and continuously develop their
functioning to develop more significant advantages in all over the market. It is multinational
group company that assists to design and sells assemble furniture, kitchen appliances and home
accessories within useful goods and home services. The company face issue of high turnover
which increases problems to attract customers. Furthermore, profitability and productivity also
reduced which need to be develop to expand business in new product. The selected business now
consider their operations and functions in retail sector for expansion of food products. They
successfully develop several products and services with online food selling so that different areas
of customers can be attracted successfully.
In addition to this, it can be stated that types of foods can be successfully build with
different kinds of information. Hence, business will get more development to focus on
commercial activities and tasks that assists to accomplish desired goals and objectives.
Moreover, there are several consideration in which IKEA need to focus such as packaging of
products, quality of products, market research, etc. All these considerations are useful
perspective that need to be focused by the chosen business to increase profitability. New product
development can be expanded in different areas of the world so that it helps to increase more
effectiveness.
Scope of ideas for developing new product
IKEA successfully expanded their new product development process so that it assists to
focus on more effectiveness and ascertained desired results at workplace. In this regard, it is
essential to increase productivity and profitability through develop new product. Following are
certain scope successfully implemented to expand new product by business:
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 Internet grocery shopping: IKEA has scope to develop new product with internet
grocery shopping. In this regard, effectiveness of new program successfully implemented
that ascertained to attain more success in new areas of operations. Today's time online
shopping continuously develop with reap benefits of additional sales channel so that e-
commerce solutions are also made by the chosen business to expand their market. Quick online success: Another scope of online food selling is also developed with quick
gaining of online success. Therefore, online selling of food and beverages running in less
time which is more beneficial to add into cart system. It helps and support inventory
tracking, customer management and reporting. Hence, reliable e-commerce system assists
to focus on quick service.
 Consider appropriate packaging and labelling in IKEA products and services: with the
help of consider appropriate packaging and labelling in IKEA for food products and
services positive advantages can be successfully increases. It assists to attain more
growth and profitability in business for their development.
Identifying solution for the problem with using commercial funnel
IKEA find certain solution for their problem to use commercial funnel with high strategic
capabilities in following aspect: Matching goals to resources and capabilities with including funding alternatives: In
order to accomplish targets, IKEA need to matching their goals with existing resources
and capabilities with different funding alternatives. With this regard, online sources has
been selected by the chosen business to develop their significant advantages and attain
more profitability. Business capital and bank loan are undertaken that assists to
accomplish desired results at workplace. Company using their website for online selling
of furniture. Therefore, now they need to cope up with new food products. In this way,
they can accomplish their goals and targets in positive consideration. Furthermore, it also
expanded business with resources and capabilities with appropriate funding alternative
option.
 Identify key risks: There are several risks exists with implementation of online food
selling. With this regard, more competitors in UK those create negative impact on results.
With this consideration, it can be stated that more time and money also require at
workplace of new business. As a result, it is one more consideration which need to be
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focused to attain desired level of results. Furthermore, it can be stated that risks required
to identify that ascertained more significant advantages at workplace.
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Leadership challenges and motivational drives
Business organisation needs to adopt various techniques to bring innovation and creation
in business activities and also to solve some specific problems. IKEA is furniture retailer and
also deals in kitchen appliance, home accessories and assembled furnitures. IKEA fails to satisfy
its employees and thus faces problem of high employee turnover. Leadership challenges brings
problems which can be resolved by effectively managing business activities and driving
motivation in employees.
Effective communication between staff employees and management leads to bring
solutions for many problems. IKEA needs to make employees to take effective part in decision
making and other activities. Employees providing their ideas and suggestions in business
activities leads to create interest and provides job satisfaction.
IKEA needs to properly divide roles and responsibilities among employees and needs to
make everything clear regarding their role and objectives of organisation. This leads to drive
motivation and also effective involvement of employees and also reduces employee turnover.
Leaders needs to ask feedback from employees and bring improvements and changes
accordingly. This will lead to create effective leadership ideas and plans which can be used to
drive motivation in employees and solve specific problems as well.
Value measurement using key performance indicators
Leaders needs to measure and monitor performance of employees and accordingly
provides feedback to them so that they can manage and implement development programs for
them. This will drive motivation and satisfaction of employees and also develops knowledge and
skills of employees. Various key performance indicators used by IKEA are discussed as follows:
 Employees are rewarded on the basis of satisfaction level of customers through products
and services offered to them.
 IKEA needs to check co-operation between employees and their role in team activities
and operations.
 Employees needs to be given proper performance appraisal and rewards, as this will also
drive motivation and satisfaction in them and reduces employee turnover.
 Value measurements can be done on the basis of increase in sales and profits of
company's and contribution of employees for same.
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 Various key performance indicators can be used on basis of appropriate utilization of
available resources and avoiding waste by employees.
Various tools of key performance indicators leads to drive motivation in employees and also
provides job satisfaction to them. IKEA needs to properly measure contribution of employees
and accordingly drive motivation by giving performance appraisal and rewards to them.
Tools and techniques for testing effectiveness of new products
IKEA aims at developing new product line and enters in new markets by introducing
food products range. It adopts product testing tool to measure performance of new product in
target markets, which is explained as follows:
 feedbacks from customers regarding new product
How the company can protect intellectual property rights for new product and service
In order to accomplish desired level of results, it can be stated that IKEA need to focus on
intellectual property rights for their new products and services. It assists to focus on appropriate
functioning of the business to increase their significant advantages at workplace. Different tools
can be expanded in following ways: Patent: Patent grants property rights to IKEA and allowing them to exclude others from
making, selling and using invention. In this way, new product development process can
be successfully produced to gain competitive advantages in marketplace. Hence, it
contains three types of patents such as utility, design and plant. Trade marks: Trade marks consider word, phrase, symbol, design, etc. These elements
consider source of products and services in one business from its competitors. This assists
to IKEA to easily enforce rights and conduct research to reduce amount of time and
money that can be spend in already registered business.
 Trade secrets: Trade secrets is a process in which process, formula, device and other
information can be successfully gain to the business can keep private advantages over
their competitors such as customer lists, survey results, etc.
CONCLUSION
From the present study, it can be concluded that every enterprise considers different
techniques and tools that brings effectiveness in related services. In this regard, IKEA develop
new product that is online food selling in UK market. Furthermore, they are facing issue of high
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turnover which need to be solve to gain more creativity and effectiveness at workplace of chosen
business. At last, tools and techniques explained that protect intellectual property rights for
products and services of the organisation.
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