Business idea
A wide range of technologies could be incorporated into the IKEA furniture products to enhance their performance and meet customer needs and demands. The proposed idea is one that is capable of providing an integrated furniture set complete with electronics that are connected wirelessly. Electronics such as a TV, personal computer, and speakers connected wirelessly (Aristeidis, Joannopoulos, & Peter, 2008).
This is a proposal to create a furniture set that has television screen, a personal computer, hardware needed and a sound system embedded and connecting to each other wirelessly. The computer systems also connect wirelessly to the internet, the television set connects to the DSTV channels wirelessly. The furniture will range from a wall unit, a working table, office furniture or living room furniture set that could be embedded with these disruptive technologies (Aristeidis, Joannopoulos, & Peter, 2008).
The devices to be integrated are electronic devices that will need electricity to operate. Therefore the wireless power and energy transfer technology will play a crucial role in powering the devices; power will be transmitted wirelessly to the devices to avoid the use of power cables that will be needed to power the devices. Wireless energy transfer will involve the use of magnetic fields to transfer this energy from one point to another (Andre & Robert, 2007).
The need for these devices and technology is to increase convenience and meet the dynamic customer needs; most customers and other companies are trying to adopt the wireless technology in most of their products, thus it will increase the company’s revenue since it is likely to be well received in the market (The times 100, 2009).
Feasibility study of the market needs
The current market comprises of a population of middle-age generation; this generation is characterised by dynamic needs and top among them is convenient technology and portable devices. Their demand increases and thus the ability of IKEA to create innovations that meet their needs will guarantee positive market reception (The times 100, 2009).
IKEA sales in the past years both in Scandinavian countries and internationally have been high and the numbers have been increasing. Furniture sales and furnishing sales is estimated at $5.9 billion US dollars with a growth rate of about 9.2 % per year for the years 2003-2011. This shows the increasing demand for furniture and furnishing internally and internationally. The increasing demand for these products has prompted the company to increase the number of outlets and branches in the Asian countries such as Indonesia, Japan and China (IKEA, 2012).
The increasing demand for these products is attributed to the increased and rapid development of the property and real estate market internationally. The majority of this market is composed of middle income earners taking 50% of the market share; their needs are dynamic and mainly involve demand on technology and convenient products. They are mainly people aged 25 to 45 years. The other share of the market is taken by the low income earners which constitute 15% and the high income earners who take 25%. The high income earners are also a sophisticated lot requiring more sophisticated and mainly tailor-made products that suite their needs. They are also technology conscious and require products that are classy and convenient for their use (The times 100, 2009).
These markets despite the different demands they have on the IKEA products, have a common demand for sustainable products. Products that are less energy consuming and environmental friendly and are easy to maintain, it would be pointless to buy products that will in the end require additional overheads in maintenance. Using the proposed technology, the needs and demands of the market will be met (The times 100, 2009).
Competitive advantage of business idea
With implementation of the proposed idea, the company is likely to have an advantage in the market against its competitors. Consumers do not like to handle cabled devices anymore especially with electronic devices and the nuisance of having several remote controls they need an aesthetic and tidy environment. The proposed idea integrates both furniture and electronics eliminating the need for cables and probably one remote control. The customer also may request for customization to meet his demands. This creates an advantage over other competitors who have not thought of the idea. The idea will increase the reception of the company’s products since they are created to meet the consumer needs and preference.
With the implementation of the proposed idea, the company will create a benchmark. Furniture and electronics have never been integrated together; they have always been two separate entities created by different proponents and serviced and sold differently; the suppliers and manufacturers of these goods have never joined forces. With the integration of furniture and electronics into an all-in-one system, the company will create a benchmark. This will help the company to gain competitive advantage over the other companies dealing with furniture products. Introducing this idea will definitely change the rules of the game.
There will also be partnering with an electronics company to overcome speculation over their electronic devices. The company outsources the electronic supply from an electronics company to meet the consumer expectation. This creates a competitive advantage given the fact that the company is not known to manufacture electronics.
Existing frameworks and operation procedure ranging from customer satisfaction, customer involvement in the process of product manufacture, delivery services and now the issue of extension of up to five year warranty for products with electronics will definitely have a competitive advantage.
The proposed idea is a new concept that has never been employed anywhere; the implementation of the idea is a whole new venture that many have not thought of. The use of disruptive technology such as the wireless powering of the electronic devices and their wireless operation is almost an unimaginable idea but possible, this in essence is a competitive advantage. By the time other competitors begin to decipher copy and implement the same idea, the company will have rolled out the technology and would be miles ahead.
References
Gupta, S. (2005). optoelectronic devices and systems. New Delhi: PHI Learning Pvt. Ltd.
Prutchi, D., & Norris, M. (2009). Design and development of medical electronic instrumentation. New York: John wiley and Sons.
