Managing Innovation: Blue Ocean Strategy Theory and its Application in Dyson Company

This report focuses on the Blue Ocean Strategy Theory and its application in Dyson Company for managing innovation. It covers the definitions, principles, and processes of the theory, along with its evaluation, benefits, and limitations. The report also discusses the historical development of Dyson Company and its future development strategies.

Managing Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Definitions, principles and processes of the Blue Oceans theory...............................................4
Evaluation of the theory along with the benefits and limitations................................................6
Application of the Blue Ocean Strategy in historical development............................................7
Application of the Blue Ocean Strategy theory in the future development................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation is considered as key approach which is related to discovering new things with
effectiveness. The innovation means development of crucial approaches or elements according to
trends in the contemporary world (Brem, Tidd, and Daim, 2019). The major business
organisations in era of stiff competition between companies focus on development of innovation
in order to perform key development and achieve competitive advantage. In this project example
of Dyson company is taken into consideration in order to understand key dimensions and aspects
of innovation. This project will include key focus on key theories of innovation in order to
perform modern and competitive operations. This project will cover essential and widely
implemented theories of innovation which are Disruptive Innovation theory. This report will also
cover application of these theories in order to provide innovation related to key ideas.

MAIN BODY
Innovation theory
Definitions, principles and processes of the Blue Oceans theory
Blue Ocean strategy- The blue ocean strategy is considered as one of the major
approaches which helps the business to develop further functions and tasks. This theory is
applicable only when there is a low or negotiable competition. The key role of a business is to
focus on implementation of this theory with main controlling and monitoring (Balatsky, and
Ekimova, 2020). The application of Blue Ocean theory in context of Dyson company makes it
more advanced at the marketplace. It is key role of a business to focus on this theory to gain
market space in tough competition based times.
Principles of Blue Ocean Strategy
If the example of Blue ocean strategy is taken into consideration it consist of six key
principles that are effective in making a company developed (Tiwari, and Buse, 2020). The key
principles of Blue Ocean strategy are mentioned below:
 Focusing on big picture not on the numbers- This is one of the most effective and
primary principles of Blue Ocean theory. Under this principle, a company should provide
more focus on incremental improvements in order to develop values in innovation. The
main aim of this principle is to help company in tackling planning which helps in
eliminating risk associated with operations.
 Reconstructing market boundaries- It is one of the main principles which states that
reconstructing the management and structure in an innovative way. It is main role of a
business entity to develop reconstructed marketplace for effectively developing key
functions related to six conventional boundaries.
 Overcoming major organisational hurdles- If the leadership's tipping point, this
depicts that managers should analyse how to run the business entity (Brem, Tidd, and
Daim, 2019). It is key role of management to focus on implementation of blue ocean
strategy in order to eliminate major organisational hurdles and consequences.
 Reaching beyond existing demand- To develop an effective marketplace for a business
it is essential to perform outstanding operations. The existing demand of customer must

be analysed by business and to fulfil them, business must take into consideration
development of focused policies and plans.
In the Dyson company application of Blue ocean strategy provides effective advantages
to a business firm. The development of Blue ocean strategy requires trained professionals and
experts who are efficient in performing key concepts related to business growth. The Dyson
company should follow all major principles which are stated in Blue Ocean theory to achieve
goals and increase expansion of business. Team management should be done in a precise manner
to achieve individual as well as employee based goals.
The other main theory related to innovation includes disruptive innovation which is
majorly applicable in different cases (Bushuyev, Babayev, and Kozyr, 2019). Development of
key theories of innovation is most essential for a business entity in order to deal with major
challenges. In order to deal with risk associated with different operations, it is necessary for a
company to take into consideration various. The main role of a business is to support
development of employees by providing key training and development to employees. In the
recent times, disruptive innovation is applied by different companies to focus on competitive
growth.
Process of Innovation Theory
In the context of ocean shift, the basically comprises of the below mentioned procedure:
 Step 1- In the selection of right scope for the purpose to build the self confidence in
employees.
 Step 2- The business should be clear about present state of play.
 Step 3- The key identification of hidden constraints for the aim to develop key chances.
 Step 4- In this step the company should select a big picture to initialise more clues
related to blue ocean
 Step 5- This is the final stage in innovation theory which includes implementing blue
ocean move.
In case of Dyson company, the key objective is to develop a precise culture at the
workplace. The Dyson company also wanted to create new perception in customers so that they
could develop key perception in mind of customers (Mousavi, Bossink, and van Vliet, 2018).
Key purpose of Blue ocean strategy theory is to develop focus on essential aspects of business in

a less challenges based marketplace. The business should increase chances of developing
customer loyalty in order to attract large number of customers. The marketplace is having
various competitor companies which are essentially performing their roles and tasks related to
business (Dziurski, Mierzejewska, and Wachowiak, 2021). This is the main role of a business to
focus on key competitors and then analyse development of Blue Ocean strategy in order to
capture the marketplace. The key focus of a business organisation should be on increasing
chances of participation of employees in order to lead the competition. Development of
innovative ideas for a business is also effective in order to develop key perceptions which are
related to making organisation more effective. The business should develop more effective
approach in managing key operations with using the disruptive innovation. The Blue Ocean
strategy will make company effective at the marketplace by increasing their value and market
share.
Illustration 1: Blue Ocean Strategy, 2022

Evaluation of the theory along with the benefits and limitations
Benefits of the blue ocean strategy
 Less competition- This is one of the major advantages of Blue Ocean strategy which
includes less degree of competition. Therefore it is easy for Dyson to capture marketplace
in short span of time.
 Increasing profitability- The application of Blue Ocean Strategy provides increased
profitability to a company. It is one of the primary functions of a business to develop
profitability and revenue with the help of this strategy (Mariev, Nagieva, and Simonova,
2020). Increasing profitability also provides investment opportunities to the business
organisation.
 Contemporary management related- The blue ocean strategy is contemporary business
environment oriented so it helps in increasing chances of growth and stability. In the
recent times, all major companies including Dyson focus on selecting this theory in order
to perform key business operations according to modern requirement. Most of the
successful business organisations which are developed on the basis of key perspectives
which are essential for increasing chances of development (Hu,, Mai, and Pekeč, 2020). It
is the major task of management of Dyson to encourage application of this theory in
order to develop competitive approach.
Disadvantages of Blue Ocean strategy
 Searching about difficulty- In the functioning of a business, it is essential to search
about this theory. Due to the dynamic and complex nature of this theory, it is very hard to
be founded.
 The chances of success rate- If the Blue ocean strategy is taken into consideration, the
chances of success rate in this theory for a business are very low. Main companies at the
marketplace focus on analysing the chances of its success rate with the support of
strategic development.
 Initial stage then real consequences- This means that for Dyson company, this theory
will increase chances of market growth (Trott, 2017). At the primary stage when the
competition is low at the marketplace, this theory will increase chances of growth and

development. When the competition is stiff, this theory fails to perform according to
expectations of company.
Application of the Blue Ocean Strategy in historical development
Company background- Dyson is a British technology company which was founded in
the year 1978 by James Dyson. Dyson Company manufactures key house utility items like Air
purifiers, Vacuum cleaners, hand dryers, bladeless fans and heaters. If the data of February 2018
is taken into consideration then company is having more than 12500 employees all across the
world. In the year 2019, Dyson company permanently mover to Singapore and is located in the
Sentosa Island. The company is expert in the field of engineering as it has well qualified
engineers and manufacturing experts. The company is known for its quality electric products
worldwide and is also known for its genuine services. In United Kingdom the company
established its campus in 1993 and it is a base for around 3500 Dyson people.
The company mainly provides its electronic items all over the world and is a great
multinational market player. In order to compete with competitors, company develops focused
marketing strategies. Innovation is also one of the main approaches which is used by Dyson
company to lead the competition (Kelliher, Kearney, and Harrington, 2018). The company also
has a separate professional IT department which consists of many IT professionals who are
effective in providing major solutions related to IT problems of a business. Dyson currently
performing operations in over 100 countries all over the world.
Historical Development: The historical development of Dyson company has played a main role
in making a giant player in field of electronics. In the year 1974, James Dyson develop a junior
vacuum cleaner that lose suction after a period of use. The Dyson who is founder of company
failed many times and succeeded after a long time by making efforts. Later on Dyson developed
a wide vacuum system which finally went successful. Dyson analysed current demand of key
equipments which are used in daily life to develop key products. Analysis of strategic goals and
policies is very much effective in making company more advances. Using the income from the
Japanese licence, James Dyson set up Dyson Appliances Limited in 1991, although it was
registered as Barleta Limited. The company licensed the technology in North America in a time
period from the year 1986 to year 2001 to Fantom Technology. A cylinder machine was
developed by Dyson which was named as DC02 which was successful. Company also gained
effective success by introducing revolutionary vacuum cleaner named Root Cyclone. The Air

blade hand dryer is also one of finest products of Dyson company which provide it more
competitive growth. The first prototype vacuum cleaner, a red and blue machine, brought Dyson
little success, as he struggled to find a licensee for his machine in the UK and America.
Application of the Blue Ocean Strategy theory in the future development
It is essential for the business entity to develop Blue Ocean strategy in order to gain
systematic approach for the future consequences. The Dyson company analysed role played by
innovation theory in its success at the marketplace. Blue Oceans theory could be categorised
according to the dynamic nature of marketplace and it also helps in increasing chances of
development. Blue oceans theory is also helpful in development of key golden chances which are
increasing its profitability and revenue. In order to gain competitive advantage in a short span of
time, the application of Blue ocean strategy is must. For increasing competitive growth based
chances, it is essential role of a business to select management in order to develop policies
related to market based competition (Ratten, and Usmanij, 2020). The future implications of
using this theory helps a company to increase potential for developing key perspectives which
are related to future consequences. The brand recognition is also a major aim of Dyson company
which will be increased with usage of this theory of innovation. Most of the successful
companies at the marketplace should focus on increasing key strengths related to dynamic nature
of marketplace. In adopting the Blue Ocean strategy for future, it is key role of Dyson company
to frame effective policies and frameworks. The strategic management plan should be developed
by Dyson company in order to increase chances of effective development and growth. The main
motive of company should be deal with specific operations that are related to its growth and
development.
Future development strategy of Dyson company is essential to be developed in order to
formulate best business practices. In the recent times, all major companies focus on increasing
chances of competitive growth by developing key parameters of a business. All major companies
in the national and international marketplace should focus on development of this strategy in
order to gain desired success at the marketplace. Dyson company should take assistance of key
strategies that are fruitful in providing solutions to business to deal with key consequences. The
Blue Oceans strategy is also one of the major approaches which helps the company to move
ahead of its competitors in a short span of time (Poblete, and Spulber, 2017). With the assist of
this method, the employer makes use of minimum marketing and marketing and had additionally

grown on emblem reputation and phrase of mouth. In connection with the business enterprise,
the blue ocean method of the employer indicates the commercial enterprise proprietors in
sporting out powerful blue ocean marketplace studies and specializing in their concept for the
cause to discover some thing which can differentiate the business enterprise from different
propositions and additionally specializing in developing a catchy tag line that would talk the cost
of the product. Through developing an uncontested marketplace space, the business enterprise
affords you with the possibility to create call for for the product or service from an untapped
patron base and on the equal time pride your current customers.
The development of a company depends of the professionalism and ethical power of
employees. So it is necessary to arrange effective workplace for the employees in order to
achieve key development based chances. The main function of a company is to regulate best
rules and regulations which are essential for employee development. Key companies at the
marketplace also increase chances of their development with the help and support of growth
based factors analysis (Ratten, 2022). Analysis of external and internal environment is essential
for well defined growth and development. In order to increase chances of systematic
development, it is necessary for the company like Dyson to encourage employee empowerment
to gain their productivity. The companies also takes into consideration enhancement of business
reach and market share to gain systematic growth in order to lead the competition. The top level
and strategic management of Dyson company should focus on development of key initiatives
which are essential for execution of its Blue Ocean strategy. Majority of different companies
which are engaged in development of focused practices should analyse importance of
implementing the blue ocean strategy.
 Reconstructing market boundaries- The market boundaries are essential to be
constructed according to the demand of marketplace. In order to develop key approach in
dealing with key organisations which are competitors at the marketplace, it is essential to
focus on development of business entity.
 Overcoming key organisational obstacles and hurdles- The major organisational
challenges which are faced by a company should be considered. There is a need of
formulating key policies which are related to expanding key operations. Development of
focused plans and policies for the companies with help and support of Blue Oceans
theory is a must having consideration (Tiwari, and Buse, 2019). Major companies like

Dyson eliminates risk associated with the operations with support of the strategies.
Innovation is a must consideration for Dyson to follow the business trends according to
contemporary business environment.
 Reaching beyond existing demand- The main considerations which are to be followed
by a business entity are essential to be considered in order to formulate key practices. The
demand and supply of major customers should develop key practices which are related to
growth and development of plans (Si, Kavadias, and Loch, 2022). In order to develop
key and systematic approach at the marketplace, it is necessary for companies to fulfil
wants and needs of major customers.

CONCLUSION
From the above stated analysis it can be concluded that innovation is considered as most
important function of a company which helps in increasing chances of precise growth.
Innovation is the modern way of competing with other organisations by providing new products
and services. This project concludes innovation is also considered as key tool which helps in
increasing chances of expansion of business at the marketplace. This report concludes that
innovation based theories are key approaches for a business in order to deal with major
challenges and issues related to business development. This project also concludes that in order
to gain competitive advantage in a set period of time, it is significant for companies to take
assistance of strategic and professional planning.

REFERENCES
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