The Business Case Study of IKEA Company


IKEA is an international company which makes furniture, home appliances, and kitchen accessories. It has its headquarter in the Netherlands.; It is one of the largest retail company in the UK (IKEA. 2016).; The company designs self-assembled furniture. Ikea furniture and home accessories are practical and well designed (Rajappa and Raj, 2016). Company sue cabinet grade furniture grade MDF in all of its MDF; products. The present report describes new innovation that can be mad in the company. The study will showcase the innovation IKEA is trying to do. The present report describes a problem that can be solved by launching the app in the market. In addition, it also illustrates the profit that is associated with the launch of the app. The report will focus on project option analysis that needs to be done by IKEA before launching the app in the market. It will also highlight the recommendations that need to be taken int


The aim of this report is to study the launch of catalogue app by IKEA.


Market globalization is continuously increasing these days. Due to this reason every company needs to make innovation in their marketing approaches to maintain a position in the market. IKEA is making innovation in its marketing by launching its catalogue application in the market. Catalogue application is a web application which helps a user to buy products online (IKEA APPS. 2016). This application will allow the customer and buyers of the home furnishing company to keep updated about the latest releases of products, furniture, and home appliances. This app will let a customer see how its products would fit in their homes and how they will look in reality. An app can list different categories of the product, product specifications. It will also include multimedia resources like videos and pics of the furniture and home appliances.

This app will use a print catalogue which is placed on the floor to get a rough idea about products fitness in real life. This will let user a real experience like they are trying the furniture product in their room itself. From this app, the IKEA can get customers to feedback about the product.IKEA can conduct research on the customer to determine the need and expectations of them so that the app can be evolved according to their preferences. By conducting research they can identify the problem faced by the buyers when buying furniture and questions they have in mind as if the product will get fitted in their rooms or not.IKEA is planning to launch the print version of the catalogue app which will feature more than 50 pages. A customer can scan with their mobiles to get supplementary information about the product (Martinez and, 2014).


To determine possibilities like strength, weakness, opportunities and threats of IKEA Catalogue mobile app swot analysis can be used for it. In SWOT analysis is a framework that helps in analyzing the situations and finding out the best solution.

The Strength of Catalogue Mobile App

IKEA has a solid financial position and good brand image in the market. Is also design attractive furniture products. Launching app will help the company in gaining more customer attraction (Cardamone and, 2016). Customers will have faster and easy access to a furniture store. They can see the product online and experience the real-life applicability of the product in their home. This app will make customer m easy to navigate through one product to another. By launching the app the company can easily give information about the product to their customers. Ikea would be able to achieve market leadership by launching an app.

Weaknesses of Catalogue Mobile App

It is difficult to identify the need and requirement of consumers due to which challenges will be faced in developing the app. A company will face an issue like the security of the app. After downloading the app there is a long subscription process. Due to which some customer will never download the app. Text displays on the app are sometimes difficult to read for a consumer, so this is also a weakness for the app to be launched. Poor mobile optimization would also be a problem for the app (Benmoussa and, 2015).
Opportunities for Catalogue mobile app: Mobile app market is growing very fast. So this is will be a proven strength for the app to be launched by the company. There is a huge market in demand for mobile application for everything that makes the life of people better and easy going. So there is an opportunity for IKEA by launching an app.

Threats of Catalogue Mobile App

There is fierce competition in the global market and exclusive social media engagement of people. Apps have inimitable functions that lead users in a difficult situation. Apps nowadays required some basic information about the consumer, so there is a possibility that customers of IKEA might not want to share the information.

The problem of innovation can Solve

New mobile Catalogue app by IKEA will solve various problems which are faced by the customer and buyers of the company. In research conducted by the company in which 70% customer are facing the problem like they do not know really how bog their room is for the furniture they bought. While some of the customers bought the wrong sized furniture. The company has also discovered in a survey that their customers want to be able to test the products they get attracted to in the catalogue. Especially in the cases of bog furniture. So these problems can be solved using the catalogue app. This app will give the consumers to see how the products would fit into their rooms.
The app uses a print catalogue which is placed on the floor to get an approximate idea about the furniture fit. It will give users a real-life environment to create an elevated picture. The picture that appears on the screen would make customers experience like they are in the customer's room. By this innovation of mobile application, the company can enable its customers to test products and this practical purpose will really help customers to see how their home s would look like. The app is also providing the print catalogue of the furniture product so that customer can scan with their mobile phones to get extra information about the product they are buying (Hye and et .al, 2015). Using virtual floor in an application, a user can assemble the furniture in their mobile screen and see the furniture look and fitness in their room. Sometimes people face the issue of not getting all information about the furniture like quality, a material used, bar codes of furniture etc. The app can solve this problem also in which all the information about the product will be made available on the app by the company.

Benefits of the Innovation

IKEA app has various benefits for the customers. Here are some benefits for the company and customer:

  • The app has built a platform for the customers to see the product fitness in their homes.
  • The app will provide more value to the customers of the home furnishing company.
  • More customers will interact with the business of the company by creating a loyalty program on the app.
  • The app will be proven cost-effective for the customer.
  • Customer time will be saved because they can deal online whatever they want to buy from the furniture store.
  • The app would be able to convince the more customer by giving a virtual experience of the product in their home.
  • The app will help the organization in building a stronger brand.
  • Catalogue app will aware consumers about the IKEA. By regularly interacting with the target market the app can foster customer's trust (Martinez and, 2014).
  • The more audience trusts the brand more they will commit to the brand. With an app, IKEA can demonstrate their users what their brand stands for.
  • A company would be able to connect in a better way with the customers. Thorough Catalogue mobile application, an organization will always know what they are offering to the customers.
  • It will provide an interface to the users to give the best experience of deciding and examining that if they want to buy the product or not.
  • This app will help the company in boosting its profits because when customer satisfaction increases, sales also increase.
  • Consumer base of the company will also increase by launching a catalogue app.
  • The app will help a company to inform the user of the new product and offers it have for its customers.
  • A company would be able to stand out from the competition by launching a catalogue app.
  • An organization can reach out to younger competitors.
  • By regularly sending emails and messages using an app the company would get more customers.
  • Consumers will have the ability to change the colour of drawers and cabinets with one click, that feature will help better visualization of the product.

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Strategic Response or Plan

IKEA to launch mobile application need to make some strategies and plans before making it. The company is required to conduct a survey on the customers.. in research they need to determine the needs and expectations of the customers. By getting information about the customers and the issues they faced in buying the furniture from the store, the company will get idea of how to make the app integrated user-friendly. The company can make the launch of the app by using a different platform like advertising about the app on the company's official website.,sending emails to the customer, providing them with a link on emails to download the app.

In making the strategy for app launching, the company need to hire technical experts who will make the app according to the needs of the user (Frenz, Kirschbaum and Moorjani, 2014). IT experts are required to make the catalogue app for IKEA. The mobile app developer would require a robust application interface in order to achieve user satisfaction. To gain customer attraction company can also organize an event to launch the app. Before the final launching of the app organization can conduct a pre-launch of an app so that hey can identify the popularity of its app among customers. A pre-launch strategy will help the company to determine that if the app is working properly, customers are getting what they want from the app. User friendliness will also get recognize through pre-launch. This approach will help for evaluating flaws in the development of a mobile catalogue app so that the developers can make appropriate enhancements in the app.

Project Option Analysis

Before launching app IKEA is required to analyze the project option. Project option analysis is done to check the feasibility and options available to the given project. These documents assist ion determining the alternative that is available to the project. It also helps to identify the best option to be selected for the project. This analysis also provides an effective solution for the project. So IKEA can do this analysis to find out the alternative of the app they are planning to launch. The company need to discover if any substitute like a website or any other social media platform is available. The process of analyzing project substitute follows option identification, feasibility analysis and option selection. These are as follows:

Option Identification

In this, a scenario is made for the future without the reference of the project. IKEA is required to forecast the future applicability of the app. A company need to make a scenario in which they can evaluate the substitute of the app. Through this, they may get some alternative of an app which might be cost-effective and requires lower investment.

Feasibility Analysis

This analysis is conducted to evaluate the current demand and forecast demand for the project. IKEA need to asses the current demand for the app and available technology. An assessment of the customer also needs to be done to find out if they need a mobile app to enhance their shopping experience. The organization can make a feasibility report which will conclude if the app is necessary to be launched or not.

Option Selection

In this step cost-effective analysis is done by the company in which comparisons of the available option is done by the project manager. The goal of this step is to select the option which can minimize the cost maximizes the output. Before launching Catalogue mobile app company should look for the other options which can solve the issues faced by consumers while buying furniture.

Delivery of the Recommended Solutions

It requires d that Catalogue app for IKEA company should be designed and launched in a systematic and strategic way so that it will help the company to boost its selling. Here are some recommendations for the company before launching a mobile app:

  • A company is required to evaluate the target audience like what benefit the audience will get by the app if the Catalogue mobile app will make the company lead the global market.
  • The organization should register its domain and create a landing page where they will launch their app (Page, 2014)).
  • By claiming social media platforms company can popular the pap among the audience before launch. They can use social media account like Facebook, Instagram to post news about the new app launch and get feedback from various people on the internet.
  • The venture can establish a feedback loop for its new app by using several in-app solutions.
  • The company can notify its app availability using email messaging.
  • Reporters and bloggers can do the publicity of the app. A business entity can choose reporters to reach out to pre-launch.
  • After the launch of app organization should encourage ratings and review from people.
  • Monitoring the growth of the app like a number of downloads.
  • A company should release updates of the app frequently. By sending regular updates company can solve issues which arrive during the use of app by a customer.
  • An organization should optimize the recurrence of marketing communication. By identifying tipping the optimal value of the app can be determined;
  • A company should get regular feedback from the customer by sending emails asking for reviews and ratings of the app.
  • After launching the app IKEA should partner up with other app developers so they can expand the integrity of the app.
  • Organization need to be engaged with its user and customers by asking a question on social media and responding to the queries put by the audience

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Present report illustrates about IKEA that is home furnishing company which is planning to launch a Catalogue app for its customers. A company can innovate the user experience by launching this app. This app will provide a platform to the user for identifying the furniture product fitness in their home. The app will help in boosting the furniture business of the venture. The problem that could be solved using innovation is also discussed. The app will solve the consumers' issue of furniture fitness in their home and will also minimize the problem of getting full information regarding the product they are buying. App has several benefits for both the company and the consumer. Project options analysis has also been considered in the report in which IKEA can look for alternatives of the app. A company should conduct a cross-examine survey on a customer to find out the need of the customers and expectations regarding the app.


  • Benmoussa, R. and, 2015. Capability/maturity based model for logistics processes assessment: Application to distribution processes.International Journal of Productivity and Performance Management.
  • Cardamone and, 2016. Willingness to use a mobile application for smartphone for improving road safety. International journal of injury control and safety promotion.
  • Frenz, A., Kirschbaum, F.S. and Moorjani, P., 2014. Mobile application interactive user interface for a remote computing device monitoring a test device. U.S. Patent Application 14/502,031.
  • Hye, K.J and ,2015. Kidult contents development using mobile augmented reality. Indian Journal of Science and Technology.
  • Martinez, D. and, 2014. Ambient intelligence application based on environmental measurements performed with an assistant mobile robot.Sensors.
  • Page, T., 2014. Application-based mobile devices in design education.International Journal of Mobile Learning and Organisation.
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