The Art Of Self-Service At IKEA

The art of self-service at IKEA

According to Senge (2006), service innovation includes services, technology, and new organizational models, different form of leadership, new procedures and business models. IKEA used service innovation and its processes to increase its sales, operation, which promote a steady growth. However, IKEA innovative services not only create new and better service for consumers who needs a good impression, but also focus on how to allocate available resources in particular ways for consumers to use in order to co-create value with seller. The clients as resource integrators focus on service and logic which is the foundation of service innovation to co-create value (Carnegie, 1998). Given these factors, IKEA implemented

For example, customers would have opportunities to change their role into a co-producer; such as picking up and delivering goods while IKEA, managers rearrange the selling activities and let the consumers take over part of them. Another great strategic management skill that IKEA master is allowing clients to be involved in the service delivery system through motivation and integration. In addition, they use technology in an ingenious way by flat packaging and encourage customers to take home their items on their own which in-cooperate their co-producers practices (Frynas & Mellahi,

Moreover, when he was faced with social problem he turned it into a business opportunity which gives IKEA global recognition for its low prices and innovative designed furniture. In China, it faced peculiar problems; for instance, its low-price strategy created confusion among aspirational Chinese consumers while local competitors copied its designs. Nevertheless, learning from these setbacks IKEA adapted strategies to expand and become profitable in the global market; such as India, where it open its first store in 2014 and plans to add 25 others stores in 10 to 15 years (Frynas & Mellahi,