Open Innovation and Internationalization in Sainsbury

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Q 1) Open innovation and Internationalization...........................................................................3
Q 2) Internationalization, localization and competitiveness........................................................6
Q 3) Organizational purpose, profitability and social responsibility...........................................8
Q4) Personal reflection on learning...........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

ABSTRACT
Open innovation means combining the external and internal resources and grabbing the
opportunities that it creates. It has ability to provide long term advantage to MNC's like
Sainsbury. It has been found out that Sainsbury is using the innovation funnel that supports firm
to align the strategic aims and objectives. This model provides various benefits of external
innovation. Further, company should adopt demand for internationalization because it helps to
spread division of human resource at international level.

INTRODUCTION
The term global corporate strategy means the strategy that company adopts when it wants
to expand and compete in the global market. It also refers to the plans a company has developed
to target the growth beyond its borders (Amanchukwu, Stanley and Ololube, 2015). The Report
is based on J Sainsbury. It belongs to retail industry. It was founded in year 1869 by John James
Sainsbury. It offers a wide range of products through superstore, convenience shops,
supermarket, forecourt shop etc.
The Report will outline the difference between closed and open innovation,
Internationalization, localization and competitiveness, organizational purpose, profitability and
social responsibility and Personal reflection on learning with the help of Gibbs reflective cycle.
MAIN BODY
Q 1) Open innovation and Internationalization.
Basis Open innovation Closed innovation
Meaning It is described as the use of
purposive outflow and inflow
of knowledge to improve
internal innovation and also to
expand the markets for
external use of innovation
(Eckhardt, Ciuchta, and
Carpenter, 2018).
It refers to the process that
leads to the innovation which
is fully controlled and all the
intellectual property is
developed in the company.
Under this process, all
intellectual property is kept
within the boundary of firm
until new goods are released in
the market.
Role of customers In case of open innovation,
customers are active co-
innovators as they provide
information to company that
helps to innovate new products
or service.
Under closed innovation,
clients are passive recipients
because they do not provide
any input that may help firm to
innovate new products.
Venture capital
Under open innovation venture
capital plays an important role.
In case of closed innovation,
venture capital plays only a
minor role.
Mobility of employee's High Low
Qualified persons The firm works with bright
minds outside and inside the
organization.
Under this, high skilled
workers mainly developers and
researchers are major source of
innovative ideas.

Role of research and
development
Innovation may come from
inside and outside. External
research and development may
develop major value but
internal research and
development department is
also required to capture the
part of this value.
Development, design and
marketing of in-house
innovations : Own innovative
technologies, ideas, markets
and processes offers a long
term competitive advantage.
Competition To compete with other firms it
is not essential to deliver the
best ideas but it is important to
make the most of external and
internal ideas.
To lead the competition in the
industry it is important to offer
the best ideas (Eriksson and
et.al, 2015).
Intellectual property Under this, innovation doe not
require to be created in order
to make profit from it. A
competitive advantage may be
gained and profit may be
generated by other people with
the help of own intellectual
property. The firm acquires
intellectual property of third
party.
Firm treats own know-how
confidentially to safeguard it
and also to avoid free rides by
other companies. Copyrights,
patent etc. are intended to
safeguard the ideas and
research of the company from
theft.
The open innovation model- Sainsbury is using the following model to promote innovation in
the organization.
The Innovation funnel :
It refers to the mechanism that supports a constant flow of ideas that can be screened for
profitability and viability. It is also known as funnel management process that is used by firms to
develop a realistic and innovative action plan (Forsgren, 2015).
Sainsbury is using innovation funnel that helps to align the strategic aims and objectives.
The model provides various benefits of external innovation. It also promotes strategic thinking
that helps to improve product quality, productivity, usability, reduction in operational complexity
and cost etc. Moreover, the funnel helps to provide more predictability and legal protection. It
enables Sainsbury to allow innovators to participate in cross licensing, licensing, joint ventures
and other transactions.
Factor endowment-