The Business Case

A Report on Business Case of a MNC

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Introduction to business Case Study

IKEA is multinational company which makes furniture, home appliances and kitchen accessories. Its has its headquarter in Netherlands. It is one of the largest retail company in. The company designs self assembled furniture. Ikea furniture and home accessories are practical and well designed. Company sue cabinet grade furniture grade MDF in all of its MDF products. Present report describes about new innovation that can be mad in the company. The study will showcase the innovation IKEA is trying to do. Present report describes about problem that can be solved by launching app in the market. In addition to that it also illustrate the benefit that are associated with the launch of app. Report will focus on project option analysis that need to be done by IKEA before launching the app in the market. It will also highlight the recommendations that needs to be taken in account by the company.


The aim of this report is to study the launch of catalog 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 position in market. IKEA is making innovation in its marketing by launching its catalog application in the market. Catalog application is web application which helps user to buy products online. This application will allow the customer and buyers of the home furnishing company to keep updated about latest releases of products, furniture , and home appliances. This app will let customer see how its products would fit in their homes and how they will look in reality. 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 catalog 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 feedback about the product . IKEA can conduct a research on the customer to determine the Ned and expectations of them so that 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 like if the product will get fitted in their rooms or not. IKEA is planing to launch the print version of catalog app which will feature more than 50 page. Customer can scan with their mobiles to get supplementary information about the product.

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To determine possibilities like strength , weakness , opportunities and threats of IKEA Catalog 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.

  • Strength of Catalog mobile app: IKEA has solid financial position and good brand image in the market . Is also design attractive furniture products. Launching app will help company in gaining more customer attraction. Customers will have faster and easy access to 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 thorough one product to another. By launching app the company can easily give information about the product to their customers. Ikea would be able to achieve market leadership by launching app.
  • Weaknesses of Catalog mobile app: it is difficult to identify need and requirement of consumers due to which challenges will be faced in developing the app. Company will face issue like security of 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 is sometime difficult to read for consumer, so this is also a weakness for the app to be launched. Poor mobile optimization would also be a problem for the app.
  • Opportunities of Catalog mobile app: Mobile app market is growing very fast. So this is will be proven strength for app to be launched by the company. There is huge market in demand of mobile application for everything that make the life of people better and easy going. So there is an opportunity for IKEA by launching app.
  • Threats of Catalog mobile app: There is fierce competition in global market and exclusive social media engagement of people. Apps have inimitable functions that leads users in difficult situation. Apps now a days required some basic information of the consumer ,so there is a possibility that customers of IKEA might not want to share the information.

Business case document

New mobile Catalog app by IKEA will solve various problems which are faced by the customer and buyers of the company. In a research conducted by the company in which 70% customer are facing problem like they do not know really how bog their room are for the furniture they bought. While some of the customers bought the wrong sized furniture. Company has also discovered in survey that their customers want to be able to test the products they get attracted to in the catalog. Especially in the case of bog furniture's . So these problems can be solved using catalog app. This app will give the consumers to see how the products would fit into their rooms.

The app uses print catalog which is placed on the floor to get approximate idea about the furniture fit. Its will give users areal life environment to create elevated picture. The picture that appear on the screen would make customers to 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 helps customers to see how their home s would look like. The app is also providing the print catalog of the furniture product so that customer can scan with their mobile phones to get extra information about the product they are buying. Using virtual floor in application, user can assemble the furniture in their mobile screen and see the furniture look and fitness in their room . Sometime people face the issue of not getting all information about the furniture like quality , 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 an d 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 business of the company by creating 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.
  • App would be able to convince moire customer by giving virtual experience of the product in their home.
  • App will help organization in building stronger brand .
  • Catalog app will aware consumers about the IKEA . By regularly interacting with the target market the app can foster customer's trust.
  • The more audience trust the brand more they will committed to the brand. With an app IKEA can demonstrate the their users what their brand stands for.
  • Company would be able to connect in better way with the customers. Thorough Catalog mobile application , organization will always know what they are offering to the customers.
  • It will provide an interface to the users to give the b est experience of deciding and examining that if they want to buy the product or not.
  • This app will help company inn boosting its profits because when customer satisfaction increases ,sales also increases.
  • Consumer base of the company will also increase by launching catalog app.
  • App will help company to inform user of new product and offers it have for their customers.
  • Company would be able to stand out form the competition by launching catalog app.
  • Organization can reach out to younger competitors.
  • By regularly sending emails and messages using app the company would get more customers .
  • Consumers will have the ability to change the color of drawers and cabinets with one click, that feature will help better visualization of the product.
  • 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 store, company will get idea how to make the app integrated user friendly. Company can make the launch of the app by using different platform like advertising about the app on company's official website.,sending emails to the customer, providing them link on emails to download the app.

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

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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 given project . This documents assist ion determining the alternative that are available to project. It also help to identify the vest option to be selected for project. This analysis also provides effective solution for the project. So IKEA can do this analysis to find out the alternative of the app they are planning to launch. Company need to discover if any substitute like 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 future applicability of the app. Company need to make scenario in which they can evaluate the substitute of the app. Through this they may get some alternative of app which might be cost effective and require lower investment.
  • Feasibility analysis: This analysis is conducted to evaluate the current demand and forecast demand of the project. IKEA need to asses the current demand of app and available technology . An assessment on customer is also need to be done to find out if they need a mobile app to enhance their shopping experience . Organization can make 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 available option is done by the project manager. Th goal of this step is to select the option which can minimize the cost maximizes the output. Before launching Catalog 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 is require d that Catalog app for IKEA company should be designed and launched in systematic and strategic way so that it will help company to boost its selling. Here are some recommendations for company before launching mobile app:

  • Company is required to evaluate the target audience like what benefit the audience will get by app,if Catalogue mobile app will make the company lead the global market.
  • Organization should register its domain and create a landing page where they will launch their app.
  • By claiming social media platforms company can popular the pap among 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.
  • Venture can establish feedback loop for its new app by using several in app solutions.
  • Company can notify its app availability using email messaging.
  • Reporters and bloggers can do the publicity of the app. Business entity can choose reporters to reach out to pre launch.
  • After launch of app organization should encourage ratings and review from people.
  • Monitoring the growth of the app like number of downloads.
  • Company should release updates of the app frequently. By sending regular updates company can solve issues which arrive during the use of app by customer.
  • Organization should optimize the recurrence of marketing communication. By identifying tipping optimal value of app can be determine
  • 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 developer so they can expand the integrity of the app.
  • Organization need to be engaged with its user and customers by asking question on social media and responding 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 Catalog app for its customers. Company can innovate the user experience by launching this app. This app will provide a platform to user for identifying the furniture product fitness in their home. App will help in boosting the furniture business of the venture . The problem that could be solved using innovation are also discussed. App will solve the consumers issue of furniture fitness in their home and will also minimize the problem of getting full information regrading 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. Company should conduct a cross examine survey on customer to find out the need of the customers and expectations regarding app.


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