New Product Development for IKEA: A Strategic Analysis

This report examines IKEA's new product development strategies, focusing on challenges like high employee turnover and solutions utilizing the commercial funnel. The analysis covers the company's background, identifies problems, and proposes ideas for new products and services, such as internet grocery shopping and flexible working options. The report details the application of the commercial funnel to address issues, including matching goals to resources, identifying risks, and addressing leadership challenges. It also explores key performance indicators, employee feedback, and tools for testing new product effectiveness, like market testing and prototype testing. Finally, the report discusses intellectual property rights protection through patents, trademarks, and trade secrets, concluding with recommendations for IKEA to improve its product development process and protect its intellectual property.

NEW PRODUCT
DEVELOPMENT FOR
IKEA

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.

Problem of the company
 The company face issue of high turnover which
increases problems to attract customers.
 This is because, the company is not providing
benefits to staff members to accomplish goals
and objectives.
 Therefore, it is one of the major concern for the
business.

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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.

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:
Internet grocery shopping
Quick online success
Consider appropriate packaging and labelling in IKEA products and
services

Ideas generated by business
Hire right people: Furthermore, the organisation has idea to
reduce their turnover through hire right candidate at
workplace.
Offer flexible options: Moreover, IKEA has another option to
offer flexible working hours in the business.

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
 Identify key risks

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Leadership challenges and motivational drives: Leadership
challenges brings problems which can be resolved by
effectively managing business activities and driving
motivation in employees.
Various key performance indicators: There are several various
key performance indicators used by IKEA are such as
employees are rewarded on the basis of satisfaction level of
customers through products and services offered to them by
using.

Action taken by leaders
Effective communication
Divide roles and responsibilities

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Ask feedback from employees