With IpOp Model concepts Ikea gains competitive advantages

Ikea just demonstrated how some of the concepts/tools presented in “Winning Opportunities*, proven tools for converting your projects into success (without a business plan)” can be used not only to acquire significant competitive advantages but also change the competition landscape. It just announced the commercialization of a new line of products under the label ‘Uppleva’ (see video below).

The underlying IpOp logic (IpOp Model vocabulary is in Orange):

The PND (Pain/Need/Desire): consumers do not like to see the wires resulting from the presence of electronic equipment. They also dislike have multiple remote controls. They aspire/desire for aesthetics and tidiness.

The Solution: integrating both furniture and electronics in an all-in-one system. The result: a home cinema with no apparent cables and only one user friendly remote control. The look of the furniture can also be customized.

The Benchmarking: since until now furniture and electronics vendors were not joining forces the synergy between furniture and electronics was not treated as a CDC (Customer Decision Criteria). By partnering with TCL Multimedia, the Chinese manufacturer supplying Thomson equipment, has identified a Tactical Move that gives a real competitive advantage. Introducing a new CDC is changing the rules of the game. This might be creating a ‘Blue Ocean‘ opportunity for Ikea.

At the Value Chain level: the partnership with TCL relieves Ikea from handling the electronics component of the Value Chain.

Since Ikea has no track record in electronics it anticipated consumer (= StakeholderResistance to buy electronics from Ikea. The response is another brilliant Tactical Move:  offering a 5-year warranty on the electronics. As this Tactical Move also influences the Customer Decision Criteria Ikea kills two birds with one stone while consolidating its competitive advantages.

This is a perfect illustration of low-tech innovation and how good thinking at the PND and CDC/Benchmarking levels can create real competitive advantages and possibly a ‘Blue Ocean‘ without any technological breakthrough.

The base unit comes with a “smart” 1080p LED TV, Blu-ray player, and 2.1 virtual surround system that includes a wireless subwoofer that can be positioned anywhere in the room. Consulers can customize the TV size and cabinetry and even change the color of the frame for the TV.

*The book can be downloaded free of charge at www.winning-opportunities.org (PDF, Kindle, iPad/iPhone, ePub formats)