This paper presents an innovative concept for functional, low-priced, privately-owned housing products called BoKlok and analyses the development as well as the commercialization of this concept as a joint effort of the home furnishing company IKEA and the international construction enterprise Skanska. In the first chapter a short review on academic theory related to the paper is offered. In the second chapter the named housing products are introduced to the reader, their innovative characteristics are pointed out and an overview about the history of the concept as well as the current state of business related to the BoKlok products is given. In the third chapter the business model that is applied for merchandising BoKlok homes is analysed in detail. Chapter four and five each present a general overview about the companies IKEA and Skanska, which cooperated in the development project for the BoKlok concept. The development process as such is reviewed explicitly in chapter six. In chapter seven factors that significantly influenced the project results are identified and discussed in respect to relevant academic findings. Chapter eight illustrates how the BoKlok concept is continuously developed further in the present. The work concludes with providing some future perspectives for the concept in chapter nine.