Blue Ocean Innovation Theory for Olo: Principals, Process, and Evaluation for Future Development - Assessment

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Blue Ocean Innovation theory.........................................................................................................3
Definition.....................................................................................................................................3
Principals......................................................................................................................................3
Process of theory..........................................................................................................................4
Evaluation of theory.....................................................................................................................5
Application of Blue Ocean innovation theory in historical development.......................................5
Application of innovation Blue Ocean innovation theory in context of future development.........5
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Innovation signifies generation and implementation of new ideas with an aim to bring a
creative & unique product in market place. It can be related with development of new product &
services and modification in existing products. Innovation is a process through which a domain,
product & service is renewed and updated by applying new process, formulating successful new
ideas in order to provide value to customers (Whidya and et. al., 2020). The present report is
based on Olo, B2B sass company which prepares a digital delivering programs for restaurants. It
is headquartered in New York and was founded in the year of 2005. The present report is based
on innovation in company which will help in bringing value in its products. Blue Ocean strategy
is implemented in the following report in order to introduce and implement innovation
effectively. Blue ocean strategy is widely used framework which is adopted for getting
competitive advantage by differentiating products and services from competitors The report
comprises principals, process and evaluation of respective theory, with application of historical
and future development.
Main Body
Blue Ocean Innovation theory
Definition
Blue Ocean is related with pursuing differentiation & low cost for creating new market space and
increase demand. Maim aim of this strategy is to acquire huge market space and strengthening
market position in such a manner that competition become irrelevant. Competitive advantage is
the major objective behind this strategy where managers put all the necessary efforts for
differentiating their services from rivals (Salih, 2019). In context of Olo, they are looking
forward for bringing innovation for which they will apply blue ocean strategy in a structured way
so that they get positive results in future period of time.
Principals
Blue Ocean is a theory of strategic management which holds great significance in
business setting. Principals of this theory are mentioned as under:

Reconstructing market boundaries: According to this principal, there is requirement to
identify new boundaries, opportunities for business growth apart from the set conventional
criteria. New opportunities are really helpful in bringing growth and provide a chance to
organization to explore in new areas. In context of Olo company, they are required to follow this
principal for further development of business.
Reaching beyond existing demand: There are some predefined level of demand is
present in market but for growth, it is imperative to generate new demand by targeting more
number of customers. For this, organization is required to always tap into new segment by
undertaking extensive market research which lowers down the risk of failure (Nakamori, 2020).
In context of respective company, they can get tremendous success by implementing this
principle as it will help in enlarging current customer base significantly.
Process of theory
 Reconstruct market boundaries: It is the first step under which existing business
boundaries are analyzed and then suitable strategies are prepared in order to explore
business apart from conventional boundaries for gaining higher amount of sales &
revenue.
 Focus on big picture: Do not get indulge in small issues while focus on such things
which have tremendous impact over business. Always, prepare such strategies which
prove beneficial for company in future period of time (Denning, 2017).
 Reach beyond existing demand: Rather only focusing on existing customers, try to
generate more demand by targeting more number of customers. Focus on potential
customers and tap into new segments so that business can grow & succeed.
 Apply right strategic sequence: For successful implementation of strategy, apply
strategies in predefined sequence. It will help to drive positive outcomes through
innovation & development framework.
 Overcome with organization hurdles: It is the crucial stage where, it is required to put
efforts for resolving issues before they turned into big problems. Timely resolving issues
is helpful in order to deal with future obstacles effectively.