The Innovation Stack in Action: Real-World Case Studies from Square, IKEA, and More

Behind the Scenes of the World’s Most Unbeatable Companies

It’s easy to admire great companies from afar, but the real magic happens behind the scenes—where adversity forces invention, and one solution leads to another. Jim McKelvey’s 'The Innovation Stack' reveals how companies like Square, IKEA, and Southwest Airlines became unbeatable, not by copying, but by building a unique stack of interconnected innovations.

Take Square: It wasn’t just a mobile card reader. It was a new approach to hardware, software, risk management, customer support, and even regulatory compliance. Each innovation solved a new problem, and together, they formed a system that Amazon couldn’t copy—even when it tried.

IKEA’s story is just as dramatic. Supplier boycotts forced the company to invent flat-pack furniture, which led to new logistics, catalog sales, and a global supply chain. Each step was a reaction to adversity, and the stack grew stronger with every challenge.

Southwest Airlines rewrote the rules of air travel by standardizing on one aircraft, turning planes around in minutes, and creating a playful culture that attracted loyal customers and employees. Competitors could copy one or two features, but never the whole system.

The takeaway: The real moat isn’t a single killer feature—it’s the stack. If you want to build an unbeatable business, start stacking. 1 2 3