C17EC Business Report On Solar Shelter

Here’s the sample of C17EC Business Report on Solar shelter 

Executive Summary

This paper analyse the IKEA company innovation i.e. solar shelter. Basically, shelter lightening system is an efficient means to providing lightening without need for standard utility power. The company with this product segment the UK market through targeting the youngsters who likes travelling and campaigning. This type of target audiences largely requires for the solar shelter product in the night. In regards to this product, forces five forces model and SWOT analysis is conducted. In this, it is identified that the competitor and rivalry will be low which provide benefit to IKEA and this proves as a strength for the company . Besides that, the weakness would be the less knowledge and awareness about the product in market.

Additionally, the Company will acquire the required material and supplies from the suppliers in UK. At the same time, this idea is also demand high requirement of funds such as £50000000. It will be managed by bank loan. Thus, the chances of success of solar shelter product will more due to effective deigns, marketing strategy and business plan.

Company Overview

IKEA is considered as a Swedish company which deals in different segments such as kitchen appliances and home accessories. Similarly, it also associated with the eco-friendly activities. It includes solar related products. However, IKEA has proper home solar panels and battery storage portfolio in which numerous product sells to target market (Edvardsson and Enquist, 2011). Basically, it is a furnishings retailer company which is a bigger seller of furniture. Other than that, shelter roofing solar will be the current product for which company is working. Thus, this is the innovative product of business which is going to launch the company in the upcoming years.

Vision: the vision is to create the life of each individual better through offer wide range of well-designed functional home furnishing products and solar related product at affordable price.

In regards to this, the objectives are as follows:-

  • To achieve the long and short term objective.
  • To make good quality products at an affordable price
  • To provide the product at affordable price so that each individual can afford it (Hellström & Nilsson, 2011).

Legal Structure

There are four ownership structure used to finance solar projects. It involves the owner financed, partnership flip, the sale leaseback and the lease-pass through etc. This structure could help the company to properly arrange the funds in a timely manner.

Product/ Service

IKEA innovation would be the Solar powered shelter product and this product design also win award. It will be launched soon by the IKEA Company (Tarnovskaya, 2011). It has temporary weatherproof structure and the better shelter has been designed for use by people with the aim to avoid the conflicts and natural disaster.

The main feature of solar shelter is the solar power and it is an integral part to the shelter design with the panel installed in its roof. However, the panel charges the LED light within the shelter and this practice allows to using the shelter four hours during the night when it’s fully charged. In this, mobile phones can also charge through USB connection in the lamp.

The major benefits is that the solar shelter reduce various chances of hazard such fire broke out. It also contribute towards the providing not only a design but also secure manufacturing as well as distribution. It makes this project more relevant. This innovative product also provides advantage in terms to respond to the changing environment condition.

Other than that, the solar shelter product also addresses the concept of sustainability. However, there is growing environmental issue with the increasing rate of emission related to toxic component. The reason is the increasing waste from the side of industries and household areas. Thus, this innovative product successfully operates all these issues (RENKO et al., 2011). 

Market and Industry Analysis

Competitive Rivalry:  there is low competition of solar shelter in the global market. This is because the demand of solar related product is still less at global market. That’s why people prefer less to make an investment in this segment.

Supplier power: Supplier power of this product is high. This is because people are becoming more conscious or aware about the environmental issues.

Buyer power: The buying power of buyer for the solar shelter tends to moderate (E. Dobbs, 2014). This is because solar related product is quite pricy and costly. This affects the buying decision of the buyers.

Threat of substitution: threat of substitution is low. This practice helps the first entrant to become the market leader.

Threat of new entrant: threat of new entrant is low. This is because of requirement of new R&D and it helps the IKEA to achieve the market share.

From the study, it is stated that IKEA can able to successfully achieve the market for its product i.e. solar shelter.

The UK market would provide better opportunity to the solar shelter product as there is large refugees and tourist available at the UK market. This can increase the chance of cover the large market. The UK market is quite big for the solar product as number of tourist and travellers are more in the country (Arbelaez et al., 2011).

In concern to this, the company would segment the market based on geographical and demography. Likewise, it targets the youth travellers and young people.


4 Ps’ of solar shelter

Product: The product includes the crystalline and thin-film solar cell. This creates the shelter. This product reduces the requirement of battery and electricity.

Price: One of the barriers in the growing solar market is the high prices and critical government policy.

Place: Building the strong supplier network is critical in keeping up with rising demand (Tapp and Spotswood, 2013). However, IKEA selects UK suppliers, distributor for selling the product to target customers.

Promotion: the print media including newspaper, magazine and social site such website or social networking site will be used to promote the product in UK market.

SWOT analysis


·         Promotes the sustainability by reducing the waste.

·         It cater all the environmental issues

·         High in quality



·         High cost of the product

·         Lack of dome shelter knowledge (Nikolaou and Evangelinos, 2010)


·         Huge range of possibilities

·         green design can enhance the customer base 



·         lack of government funding

·         less trust of customers over the product

·         frequently changing of technology



 The positioning strategy would be based on quality and differentiation (Enache, 2011).  The solar shelter unique design, feature and service quality will help to attract the large target market.


The scope of operation of solar shelter product is not that big because this requires less resource in comparison to their products. The scope of this operation is quite high because this product is an innovative product that is satisfying the customer needs regarding the electricity problem at unreached places where electricity are not provided to the people. On the other side, product life cycle is an essential concept of marketing that describes the life cycle of product from one stage to other stage. The product life cycle of solar shelter product is at introduction stage because this product is introduced by the company for targeting the customers in small communities or society (Alänge et al., 2016). This product is launched by the company in order to provide an opportunity in terms of improvement in the environment and avoiding any natural calamities.

The ongoing operation activity of IKEA provides support to the company by fulfilling the needs across the organization. The ongoing operation of IKEA is following the operational strategy which helps in managing the functioning of producing a solar shelter product. Further, the product process of solar shelter is quite different as this process involve three different ways i.e., input, transformation and output (King and Lawley, 2016). The Input process of a product is where raw material, machinery and equipments that are brought from different suppliers for developing a product. After that, product is transformed by using innovative technology and techniques efficiently and effectively. At the last process, the output of the product is delivered to its end users or customers finally.  

The supply chain management system or process followed by IKEA is agile method which helps in company to reconstruct the solar shelter according to the customer’s requirement (Ashkenas et al., 2015). In other words, agile supply chain process is very effective for the company as this process help in supplying the product by designing or bringing changes in the product or services.  

Organizational structure & HR

Organization Chart

C17EC Business Report On Solar Shelter 

The organization structure of IKEA is a large formal organization structure and it is well suited hierarchical organization structure. In simple words, the organization structure of IKEA is reflected as massive in the business size because it operates its business in more than 15 countries globally.

The recruitment strategy is major element for the organization that needs to be considered for recruiting the talented employee in the organization for a longer period.  The recruitment strategy is developed by considering the human resource policies and organization objectives efficiently and effectively (Bartley and Kincaid, 2016). The cost effective approach is used in the recruitment process at IKEA where number of talented employees are attracted towards the employment opportunity which is generated in the organization.

The management team of IKEA is quite very effective because management style which is followed is quite effective as it will help in achieving the company’s objectives. The management style of IKEA is following an effective autocratic style where only managers sets the objectives, allocates the resources and handle the risk in an efficient manner (Hotho et al., 2015). At the same time, there are different leadership styles which are also adopted by the IKEA in order to manage and handle the discipline and coordination at the workplace.

The main job roles in IKEA are human resource manager, information system manager, marketing manager, top level managers, etc (Sandybayev, 2017). These job roles play a significant role in attaining the organizational goals and objectives on time by using performing their work efficiently and also making other employees and workers to work properly.

Corporate Social Responsibility

The corporate social responsibility of IKEA is somewhere providing a positive impact on the society and economy development. The importance of corporate social responsibility is high for IKEA as this provides the company with better recognition in the society as well as positive business reputation. The major corporate social responsibility of IKEA is to provide a benefit to the society and environment with projects and activities that it undertakes. The corporate social responsibility of IKEA is leading to achieve sustainability in the environment and society (Dudovskiy, 2018). In addition to this, corporate social responsibility of IKEA is providing its support to local communities by operating its business in more than 28 markets with 340 stores. The major contribution of IKEA related to corporate social responsibility in UK is that company planted one million trees in the communities around the world.

On the other side, the other corporate social responsibility which is made by IKEA is packing events which help in Sweden by involving both customers and representatives towards Save the Children campaign. In this campaign, more than 37000 backpacks are prepared and those bags are filled with toys and other children’s products which met their daily requirements. On the other side, IKEA employee contributes towards bringing improvement in the environment in which people and their children live & develop (Filatotchev and Stahl, 2015). In respect to this, the solar shelter product of IKEA is also a great idea for contributing towards the society because this product is very useful for refugees. This solar shelter product is somewhere contributing in a positive manner to the society as this help in reducing the wastage of electricity and providing the services to the local society or small communities.         

Financial Reflection 

The financial reflection for this business idea is quite innovative and this business idea will require a huge financial support in order to establish the business in a new country, UK. For starting up the business in UK, there is a high requirement of financial amount i.e., approx. £50000000. The financial support the company IKEA will get from the internal and external stakeholders i.e., investors, shareholders, employees, bank loans and also by own funds. This financial support to IKEA will help in developing an innovative product which satisfies the requirement of the customers efficiently. 


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Ashkenas, R., Ulrich, D., Jick, T. and Kerr, S., 2015. The boundaryless organization: Breaking the chains of organizational structure. USA: John Wiley & Sons.

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