Managing Innovation - individual report

Managing Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Blue Ocean Strategy Innovation Theory................................................................................1
Application of the Blue Ocean Innovation Theory in the Historical Development Context. 5
Application of the Blue Ocean Innovation Theory in the Future Development Context.......6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Innovation is the capability to apply creativity and new ideas in a current business plan to
identify new opportunities for revenue generation in order to gain competitive advantage. It can
be implemented either by enhancing improvement in current business model or adopting new
methods for the purpose of value addition. Innovation is important in a business to differentiate
their ideas from that of others. Amazon serves as a top leading technology industry of e-
commerce and it aims to fulfil maximum areas of requirements of people by excelling in mostly
every important field. In context with Amazon, it follows a continuous innovative approach for
the growth and expansion of its operations by constant addition as well as enhancement of goods
and services. The company keeps introducing new ideas and inventions that has leads to its
success and progress. It has invented a new addition through designing a online gaming platform
through collaborating with game developers. The launching of this innovation will help the
company to widen its scope of growth and expansion magnitudes and will allow the company to
enhance its reach to the audience.
MAIN BODY
Blue Ocean Strategy Innovation Theory
This strategy implies market development where the existence of competitors is very low
indicating high potential for earning profits (Attri and Bohler-Mulleris eds., 2018). This term
explains a vast empty ocean full of opportunities that can be utilised to extending markets. This
strategy focus on mainly four principles for the execution of blue ocean which is explained in
detail below.
How to create uncontested market space by reconstructing market boundaries
This principle suggests that a company needs to observe and analyse the conditions
prevailing in a market and create strategies that implies differentiation. This principle focus on
the creation of uncontested market beyond the existence of current market boundaries. In context
of amazon, the company is one of the biggest technology oriented e-commerce industry. The
company will gain competitive advantage by extending its dimensions into online gaming
platforms (Cabezas-Rabadán and et.al., 2019). The company maintains high brand image and
reputation which makes other gaming industries difficult to compete with it. The app has been
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designed ensuring high creativity which is capable of grabbing maximum attention of the
audience.
Focusing on the big picture
Strategy formulation while executing Blue ocean pays attention on the conditions of
market instead of the requirements of the audience. Generally before implementing a new
strategy, the managers and leaders of a company performs data analysis and thoroughly evaluate
statistics regarding past experiences (Dodds and Holmes, 2020). This principle focus on the idea
of exploring the bigger picture rather than just sticking to its conventional methods. Evaluating
numbers is not the area of emphasis here, it encourages concepts different from old conventions.
Amazon is focusing on devising strong strategies by designing the app in a way that allows
people to connect across different boundaries. It offers a virtual touch of playing in person where
the fantasy scenarios seems absolutely real.
Reaching beyond existing demand and supply in new market spaces
This principle suggests the identification and analysis of customers preferences or
behaviour patterns and decide the scope of market accordingly (Kerr, Epps and Abolhasani,
2019). It focus on the evaluation of factors which is keeping the potential customers away from
the market. This allows the company to figure out the methods of grabbing more audience in
their market through value addition. Through this launch, Amazon is ensuring high value
addition by expanding its dimensions for a greater advancement. This invention will boost the
youth and teenagers to further enhance their engagement in Amazon provided services.
Getting the strategic sequence right
The blue ocean is a systematic process created including proper implementation of steps
and procedures. The establishment of blue print containing four necessary components is
essential to properly apply the blue ocean strategy. These are buyer utility, price, cost and
adoption. The buyer utility refers to the process of creating exciting offers that is capable of
generating maximum value and satisfaction to the consumer. Price refers to determination of
accessibility of a product while cost is the evaluation of expenses incurred in creation of a value.
Adoption implies the process of addressing the issues in order to implementing the business plan.
Analysis of these four elements is crucial for this strategy. If one factor is not favourable then
reorganising and rethinking is required for the execution.
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