IKEA has adjusted its value chain with new two junctures.
Firstly, IKEA took a different approach. Its new-product development process is lead by a product-strategy council which consisted of a group of senior managers who established priorities for IKEA’s product lineup.

Once a product priority is setup, a product developer will set the product’s target retail price using the “matrix” (refer to Figure 1). The matrix typically consists of three basic price ranges and four basic styles. There is a separate matrix for each product sold. In addition to setting retail prices, the management made use of the matrix to identify gaps in the company’s product lineup. In this way, In effect, the price tag is ‘designed’ first – beginning with a decision on what price the majority of people can afford to pay.