ENTREPRENEURSHIP

Entrepreneurship - IKEA an Innovative Organization

Abstract

In this paper, we discuss the innovation in furniture of IKEA. The organization pioneered in launching flat pack furniture with reasonable prices. Furthermore, the paper discusses the financial benefits that have been witnessed by the organization as a result of this innovative product launch. The paper also discusses the non-financial gains as an outcome of innovative product launch, including, expansion in customer base, expansion in new markets, employment preference by a larger number of people from all over the world. In addition, the paper discusses the future growth strategy that has been devised by IKEA to expand its growth in emerging markets. Entrepreneurship - IKEA an innovative organization

About the Entrepreneurial Firm Company

IKEA was founded by Ingvar Kamprad in 1843 when he was 17 years old. He started business in Sweden. Initially, the organization opened outlets only in the country. With the increase in the sales, the company started its international operations. The company is famous for providing low priced and innovatively designed low pack furniture. In several markets, its strategy of low price flat pack furniture generated huge profits for the organization and increased the overall value of the organization. With these innovative designs of furniture, the organization adapted several strategies to growth its customer base in China. In this paper, we will discuss the innovation of IKEA that brought in a great deal of value to the organizational worth and added substantial value to the organization.

Innovation in Furniture Design

IKEA was the foremost entrepreneurial firm that realized the benefits of flat-pack furniture, in the year 1956. The organization brought in revolution, in the furniture industry through launch of flat pack furniture that can be assembled by the consumer at home with the help of some simple tools. The flat pack furniture not only saves the raw material, but it has curbed the cost of transportation as a large number of additional pieces can be shipped at one time. The new line of Furniture of IKEA is the most effective marketing campaign for the organization. This has celebrated the resource saving legacy of the firm.

The flat pack furniture was a source of relief in the difficult moments due to its DIY-deconstruct nature. The organization has been working with United Nations High commission for Refugee in association with a team of designers from the units of refuge housing RFU to renovate the present housing conditions of a large number of refugees. It is more like Expedit shelving units or Hemnes bed and the flat pack shelter units of IKEA are shipped in deconstructed condition with the packaging of cardboard boxes. However not like the conventional furniture, these flat pack furniture units are shipped all over the world, where there is a problem of natural disaster and conflicts displace people from their homes. The organization has paid a keen attention to an optimal solution for people from different cultures. Thus, the designs of these shelters are appropriate for people from all the cultures of this ...