The success of the IKEA Group, the largest furniture retailer in the world, as a rule, due to its high innovation strategy. Thanks to global sourcing of products and customer self-service in the delivery and assembly of furniture, IKEA reaches inexpensive position that allows it to charge lower prices. Meanwhile, the use of IKEA Scandinavian design and innovative retail customers to increase the perception of getting a good value. Studying the history of IKEA, the author comes to the conclusion that, although the founder Ingvar Kamprad originally had the vision, many important details IKEA strategies were developed through experimentation and adaptation to market circumstances, and not through the planned strategy. In the scientific literature, this approach to the strategy known as logical incrementalism. The author suggests that the IKEA experience in strategy development demonstrate the importance of starting with a clear vision, but refining it over time, to experiment and to be always ready to make the mistake of trying to turn challenges into opportunities.;, And learn from other people's ideas " Hide
by Jerome Barthelemy Source: MIT Sloan Management Review 6 pages. Publication Date: 01 Oct 2006. Prod. #: SMR229-PDF-ENG
Related Case Solutions & Analyses:
Note on and a Tale about Flexible Budgeting
Medtronic: Patient Management Initiative (A)
Past the Tipping Point: The Persistence of Firefighting in Product Development
Knowledge Management and Competition in the Consulting Industry
Creating a Corporate Identity for a $20 Billion Start-up: Lucent Technologies
Enterprise: Infrastructure Maintenance Services in the U.K.
Calaveras Vineyards
Corporate Venture Capital
Tata Chemicals Magadi: Confronting Poverty in Rural Africa
Nintendo Wii U: Lessons Learned for New Strategic Directions
