Review of Innovation at Ikea

Review of Innovation at IKEA

SYNOPSIS

What started off as a small, Swedish, mail-order furniture organization prospered into one of the leading furniture stores for homes globally. Ikea, founded by a young 17 year old, is today the world’s largest furniture shop since 2008. Ikea renowned for its innovative, eco-friendly, and simplistic self-assemble design has been the corporate competitive advantage. n the success of a business organization, several factors contribute at distinct levels. For having successful business process, organizations use different models and even make their organizational culture supportive and keep their organizational structure flexible to adapt the changing business environment. In this context, the case study of IKEA is undertaken for investigating the contribution of these aspects in the success of this organization in the following discussion

FINDINGS

Lack of innovation for the past five decades, IKEA has assembled, similar cost effective products. The organization produces cost effective and quality furniture, and sells at a low price to retain customers. Ikea saves on additional costs through transportation and assembly with its flat packaging. Innovation culture is driven by the founder Ingvar Kamprad.

Three Input Components of the Congruence Model

Three Input Components of the Congruence Model

Congruence model is a useful tool that helps leaders to completely comprehend the social and technical forces that shape the performance of each organization. This model suggests that understanding the organization is the first step to assess the organizational performance effectively. Congruence model consists of three input

DISCUSSION

An innovative culture of an organization must be given a noticeable residence in the work environment. Managers and leaders need to make sure that the workforce know that innovation is key element in their job requirement. By creating a new product development system that rewards innovation not only do employees feel empowered and heard but they feel welcome to be heard. With every development or stepping stone comes failure at some time or another, embracing and recognizing failure as a stepping stone for the future and using it positively results in one step closer to success.

CONCLUSION

IKEA has proven to deliver what the customer needs, at a low price, fresh design a creating an easier way of life for many customers. IKEA needs to innovate their designs should they wish to compete globally. Currently the markets they operate in are accustomed to their deigns of low cost and user friendly designs however placing emphasis on not only on affordability but source to