Innovation and Commercialisation in Retail Industry: A Case Study of Tesco and Sainsbury's

This report discusses the innovation and commercialisation in the retail industry with a case study of Tesco and Sainsbury's. It includes the ways in which different organizations source and foster innovation, type and process of innovation in each of the selected retailers, critical assessment of the success or failure of the innovation, and recommendations for innovative procedures for new online grocery retailers.

INNOVATION AND
COMMERCIALIZATION

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Discussing the ways in which different organizations source and foster innovation, using
specific examples.........................................................................................................................3
Detailed analyses and discussions on type and process of innovation in each of the selected
retailers........................................................................................................................................5
Critical assessment of the success or failure of the innovation in context of both retailer..........7
PART 2............................................................................................................................................8
Recommendations for innovative procedures for new online grocery retailer............................8
Funding channels for innovation supported with business value...............................................9
Tools to protect intellectual property rights...............................................................................11
Action planning for innovation with suitable methods to secure them.....................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
The innovation is defined as to visualize the path in which it helps to develop the new ideas
whereas execute the existing one and helps to manufacture the goods and different services as
well. Commercialization is used to increase the process of the innovation which helps company
to make a further development which are in the favour of the company (Reyes and et.al., 2021).
Tesco and Sainsbury's are chosen in this report, both are the largest retailer in the supermarket
chain. The current report will include the discussion on the ways of the different organization’s
sources and the foster innovations with the use of the specific examples. Also, it will include the
differentiate between the different type of the innovations in which it shows the different type of
the innovations and the how they processed in the organisation. Further, it will include the details
for the business case for the innovation of the organization including the different type of the
risks as well as the benefits. Furthermore, it will include the evaluation of the different tools of
the organization which can use for the development and to retain the different tools for the
organization to protect and acknowledge the intellectual property.
PART 1
Discussing the ways in which different organizations source and foster innovation, using specific
examples
There is the different type of the organization source as well as the foster innovation in the
context of the Tesco and Sainsbury's
Creating an innovative culture - In Tesco it is used to performing in the best way which helps
to driven up the encouragement as well as to push all the boundaries which helps employees to
be more independent. It helps to pursue new ideas in which it is regarding the employee’s
engagement which are very important to be matched (Mazhar Gul and Khan, 2022). To create a
foster environment the management needs to be had a different source in which it helps to know
about the employee’s effectiveness and which helps to complete the work as well. The single
value has a different and innovative ideas in which it helps to create a different work culture
which are in the favor of the company. Also, it will help to know about the different kind of the
foster challenges which are necessary to the business. With creating the strong organizational
culture, it will help to know about the effectiveness which are needs to be very importation for
the employees to be more innovative.

Build effective teams- It will help the organization to be more effective about its teams and the
members of the team which helps to increase the organizational values and helps to perform in
an innovative way as well. Some employees will expect the dependability between the team
members in which it will helps to increase the effective structure in which it is needs to be clarify
the objectives as well. There are the different terms in which it helps to long term effects in the
term of the results which are come upon the team's efforts which are more important for the
business as well. Teams are required to create a real sense in which it helps to create a real sense
for the safety of the people who are working in an organization it also shows the different kind of
the people who are more focused with its tasks as well as to be more innovative to completed it
in a different way.
New trends- There are the many ways in which it is creating a different type of the market
changes which helps the corporate to be more structural towards its process. Practical
applications for machine and AI learning have taken place into market covering different fields
(Ardiansari and et.al., 2020). It helps individual to connect with topics on the basis of their needs
and interest. By adapting to new trends being followed in market enhances learning capability of
organization. Learning is not only department, but it is salient part of working. It can be stated
that focusing more towards learning company is expected to maximize the resilience over teams
to drive success measures and navigate uncertainties as well.
Tesco follows the suitable approach to cater valuable services for customers in order to
develop strong customer base. While teams work together to form working prototypes of
thoughts for business challenges. Although, employees are directed and strategically arranged in
order to create the culture of innovation and adapt with it as well. Such approach includes
transforming the knowledge to safeguard development of new products and other service
facilities aligning with organizational activities. The innovation process within organization is
usually render through collective tactics of working teams.
In the context of Sainsbury’s, innovative strategy works systematically in order to make
functional approach for customers with ease of getting products through physical and online
stores. They simplify their business operations at pace and manage cost saving programs in terms
to make better investments into food quality. The brand portfolio assists core business facilities
and service range for customers as well as shareholders into their own right (Brenner and
Adamovic, 2018). Business aims at pursuing partnership and outsourcing in appropriate

circumstances, benefitting third parties can introduce positive impact on the customers. So, there
are strong possibilities for business to develop strong customer base and make their employee
retention successful.
Detailed analyses and discussions on type and process of innovation in each of the selected
retailers
Innovation is considered as one of the most fundamental aspect for business as many
organizations struggle to form out effective results in their context with innovative efforts.
Teams pain through resources whereby managers seek attention towards other organization
competitive advantage with the aid of unlocking innovation process in industry or within new
markets. Forming up the innovative culture demands bunch of efforts as compared to technology
and systematic following to this process serves chance to carry out better outcomes. It is the
continuous process which makes alteration time to time in business functions and mainly it put
pieces into place with fostering them aiding innovation thriving continuously (Scott and
Zwicker, 2020). There are four major types of innovation which specifies that innovation is
dependent over emerging and some well proven technologies. Lower market affects ideas which
are easy to implement having compounding impact on time procedures. However, high market
impact thoughts tend to be difficult, costlier and riskiest to form but occur with high potential
value. The brief description about types of innovation is stated below:
Disruptive innovation – It is considered as well-known type of innovative process in which
effective utilization of technological aspects and higher impact over results. Whereas it is
extremely flashy as well as grab headlines and there are multiple challenges and nuances. Most
commonly organization exhibiting characteristics of disruptive innovation are considered as
start- ups targeting with overlooked components in marketplaces to supply most affordable
offering.
Sustaining innovation – This type of innovation aids in securing organization valuable position
in the marketplace forming up differentiation with other competitive forces. On the other hand,
comparing with incremental innovation it focuses on the aspects related to minor improvements
for existing products and services to enhance higher value and customer retention. But
sustainable innovative process aims to serve broad changes over development of new features
and services having differentiate product with extreme competition from rivals in the market.

Incremental innovation – In this phase of innovation there is continuous improvement for
existing products. Such improvements assist suitable business operations, and organizations gets
an ability to minimize stagnation as well as consistently growing up market share (Sutopo, Astuti
and Suryandari, 2019).
Radical innovation – In this process it utilizes breakthrough which transforms industries and
forms new markets. It modifies how organization cope up with marketplaces, and success of
underlying technology drives such innovation type and it is aligned with organizational
behaviours as well as capabilities which form suitable conditions fore idea to be growth fully
commercialized within first place.
However, in the context of both retailers’ innovation is most crucial process to develop
the valuable proposition in the marketplaces. Innovation enables various opportunities to change
the way of attending extreme market conditions effectively. Tesco follows sustaining innovation
to ensure the valuable image of brand is maintained in industry. They will to get a systematic
approach of working serving each and every individual worker with benefits to carry out quality
of output. By following sustaining innovation, organization has an ability to modify some broad
changes in order to gain leading position into their existing market. Also, it allows them to make
their business expansion easier while having value same as existing markets. Most of the
customers try to engage in order to get valuable services.
On the other hand, incremental innovation is the process which is followed by Sainsbury's.
They try to make contribution into the existing products and business operations. Whereas,
company has evolved delivery services as serving rapid delivery to online customers (Kyerewaa
Barfi and Sackey, 2021). The fastest modes of delivery attract the audience to get more services
by the company which creates an immense increase in market share. Sainsbury's also make
effective use of this innovative approach as serving users with same day delivery options that
forms vast comparison with other competitive forces. This aids entity to easily cope up with
fundamental needs of customer and chance to form effective communication with them. The
vision statement of Sainsbury gets fulfilled by following to such innovative approach, and they
can also introduce various activities or innovative developments that will enhance more
efficiency and productivity to serve customers with easy access with all dimensions.

Critical assessment of the success or failure of the innovation in context of both retailer
Innovation plays prominent role in organization as it serves them chance to alter way of
conducting business practices and gain significant advantage in their respective places. While
both of the organization have their own fundamental process which drive them an ability to
conduct favourable practices. Tesco follows suitable approach to figure out new products,
technologies and ideas which would support them to serve customers better. They work with
people having creative mindset to provide solutions to transform business more towards
sustainable growth (Kadir and Shamsudin, 2019). Thus, it can be clearly stated that innovative
approach by Tesco creates the possibilities for organization to succeed further and gain enough
possible ways to shape their business practices. On the other hand, the innovative process by
Sainsbury's serves them to form unique identity with their rapid delivery service to customers.
Incremental innovative approach is followed by the organization in order to develop their
customer retention. Such aspect provides organization with success criteria with strong customer
base and accessibility to introduce fundamental practices in the market. Implementing new
product ideas enables workforce to serve lucrative services to the customers which highlight
brand valued.
Thus, both the organizations obey with their norms and policies which paves the way for the
success of the business in the industry. Their approach has been successful for these businesses
to grow and achieve better opportunities in the industry. With the help of these strategies, the
organizations are able to generate better productivity and achieve sustainable growth and
development in the industry. It is further beneficial for these companies to increase their market
share and gain dominance in the retail industry at an international level successfully. The
effective changes which are initiated by these organizations in their business environment are
considered as an important part of their development in the industry.
PART 2
Recommendations for innovative procedures for new online grocery retailer
For new online grocery retailer, it is essential to cope up with suitable marketing strategies
in the market place to promote their product and serving by adding up the value. It can be done
by considering to the following measures associated with benefit and risk analysis in innovation
process. There are some suggestive measures which can be followed by the retailer to conduct
their online facilities in better ways as compare to other competitive forces in market. As grocery

is one of the industries which serves to cater better quality experience to customer in retail
market. In this phase, online facilities contribute major efforts to hike the chances of sales in the
markets as driving business with chance to gain competitive advantage (Siegel and Guerrero,
2021). They can follow some of the suggested measures to conduct their online practices with
smooth functioning.
Offline and online experience with new drinks and other products –
Implementing the physical store in the respective areas can be done while having access
to online as well. It will create ease for customer to get facilities from both the platforms as their
comfort. As online is new trend being followed in the market as both other retailers are catering
their services online. New online retail can place the business operations with all kind of
facilities which would impact higher level of customer satisfaction and positive impact on the
performance of business.
Enabling voice ordering for online services –
It is one of the innovative technological aspects which can shape the whole working
criteria into new ways. It will allow customers to try something new and make their shopping
easier, which would enable to interact with more and more people in the market (Kaipainen and
Aarikka-Stenroos, 2021).
However, innovation benefit and risk are two influential terms which drives the positive and
negative chances for business.
Benefit of innovation
By innovating new product or services in the market business gets an ability to conduct fair
practices with accessing over numerous benefits such as:
Better quality -
The quality services are familiar to meet with customer demands as making suitable assumption
about marketing always results in terms of gain higher level of sales and profits for business.
Developing product portfolio -
The most appropriate product segment drives the access and chance for business to easily attract
its bunch of customers providing vast comparison with other competitors in the existing markets.
Also, it serves chance to generate higher number of sales and profitability that will lead to
minimum amount of risk to shareholders (Kim and Kim, 2018).
Risk into innovation

The approach for making investments in R&D could bring up the decisive rewards but there are
some risk measures.
Competition –
Innovation provides many significant chances to make valuable proposition in market, while
patents are legal protection and most of innovative products are hard to secure.
Uncertainty in commercial returns-
Mostly researches are speculative and without any guarantee of futuristic profitability and
revenues. It can be said that longer timescale will create greater risk which would be overtaken
by competitors as well.
Funding channels for innovation supported with business value
Funding sources are provided to business in many ways such as public offerings, equity finance,
governmental funding. It is considered as imperative which start up business can plan for growth
aligning with business objectives (Lin, Xiao and Wang, 2021). Financial success is major
concern goal for business and in terms to accomplish this business should have realistic
planning, gaining support of investors, bankers and venture capitalists. There are some essential
sources of funding where business can access to make their innovative process lucrative such as:
Crowdfunding
it is the suitable practice of funding venture or project with the help of raising amount from
bunch of individuals. It allows entrepreneurs to attain market validation and preventing giving up
equity as before stepping out or taking concept of product to marketplace. This can be done
effectively through websites of crowdfunding.
Friends or family
Family or friends can arrange flexible arrangements for loan amount through which it is easier to
get funds borrowed. Whereas putting agreement in writing can harm family relationships at huge
risk. However, agreeing with loan makes arrangements more like business manner.
Business angles
these are also known as angle investors who provide suitable financial options, they are high net
worth person who make investments directly with entrepreneurial business for equity. It is smart
money whereby professional adds value into investee business. In terms of serving angel
financing, they are not considered as pursuing and charity as hobby. Also, they desire to have
some solid investment over returns with profits and share in relation of successful commercial

business. Angels also wills to wait long time period for returns as compared to capital investors
while investing in early business stage (Stojcic, Hashi and Orlic, 2018). The ones who are having
experience can also make investment into business practices and capital as previously been
through from business development.
Debt
in this type of funding, it drives the purpose sourcing of funds by third person as well as agreeing
with paying the amount back without any interest within specific date. Specifically, this type of
loans is accessed from credit unions and financial institutions. Business will get chance to retain
equity and flexible payment options.
Government grants
Grants could be obtained by various levels of government having various perspectives and for
industry as well. While eligibility criteria and some essential amount of funds which is available,
also some crucial activities usually different from grant to grant. Business can promote their
operational and crucial activities which would enable them to gain competitive advantage in
industry.
Equity
financing by equity stated as arrangement of funds by third part having an agreement to provide
investor business share. Equity financing arrives in various sources and most commonly it can be
provided by friends or family, venture capital and angle investors. By getting an favourable
analysis of business value for potential investment. support from such sources business gets an
ability to introduce product and services into market forming up unique identity (Li and et.al.,
2019).
Whereas effective valuation can be done through identification of investment made in resources
at start- up. It would be easier to analyse through the profits business has made in specific time
period. Investor will be able to execute the sales and profit ratio to which there will be more
convenience to conduct the business operation accordingly.
Tools to protect intellectual property rights
Intellectual property rights cover up the original ideas, inventions, creativity and discoveries
produced by person or group. Previously protection such rights were not big deal as if now
information is more accessible and convenient to distribute today because of technology. Also,
intellectual property is not only significant to safeguard innovations will not get copied but it

establishes the incentive which can proliferate number of people without violating rights.
Organizations get benefit from social media and other online platforms that allow product and
services, marketing message to reach up the target audience in right manner (Chirazi and et.al.,
2019). On the other hand, it has raised the concern of intellectual property rights as one of the
most necessitate things to pay attention in business world. There are some effective ways for
online retailer to protect their rights in correct order.
Trade secret
It is the unique and confidential terms which is considered valuable for company as it offers
competitive advantage. In the case of chosen scenario acquiring trade secret causes harm to
original owner. While other competitive forces will not have the access to steal the innovative
process of idea of person having trade protection into their context. Business would be conducted
in active manner which specifies there is trade secret and grant legal security aligned with trade
secrets.
Patents
It is exclusive right which is provided for in invention and it is methodology that supports to
serve each and every jeopardize with technological solution in new manner of performing
something. Basically, this protection is provided for period of time 20 years (Shcherbachenko
and Kotenko, 2022). Although without permission of owner of patent innovation cannot be sold,
utilized or distributed. When patent gets expired the security gets ceased whereby innovation
enters public domain and it clearly describes owner has no right to creation.
Copyrights
It is the process in which it ensures original work of authorship likely to be termed as music,
work, art and other things. Copyright is inherent in work due to result of their production and
without any kind of registration. However, registering introduces that work gets copyrights
accessibility and creator is considered proprietor of working concerns. While in the context of
remunerations, inventers usually sell the rights to the person having the best suitability to
promote them. Such payments are made contingent over work actual usage and referred as
royalties.

Action planning for innovation with suitable methods to secure them
For managing some specific innovative products introducing the online grocery market of UK
will be followed suitably on the basis of action plan and its steps.
Step 1 – setting up SMART objectives
In this first phase of planning, smart goals are usually required to be clearly stated by client in
order to make business succession clearer and more stable.
Objective – To enhance sales ratio by 15% in the area of online grocery market of UK and rate of
customer retention in business context by 25%.
Measurable – By measuring the success aspects with the help of customer retention in online
platforms and internal trend analysis (Shin, 2019).
Achievement – To accomplish the desired goal corporate will take place into online grocery
market as having unique and innovative products forming up vast differentiation from other
rivalry forces.
Relevance – Forming up the valuable image of the business and improving the customer base
with better offerings and reward policy.
Time period – By first quarter the customer retention rate with product development approach
will be increased and by one year sales profitability will be into profits.
Step 2 – Forming list of action
arrangement of funds – The loan will be accessed by bank providing the appropriate interest
rate.
Just in time system – It is systematic approach for managing the inventory which would be
followed by online retailer to order raw material from supplier in exact time when it is required.
It will further assist to save cost for transformation as well as waste of resources.
Agreement with sustainable supplier – This action will be taken and effectively implemented by
client in order to make launch of innovative products successful. The agreement with suppliers
will be carried out effectively in order to buy essential raw materials (Giolando, Collins and
Davis, 2019).
Solar panel – In this action online retailer will incorporate solar panel in business to save
electricity. This type of action will be salubrious for providing customers with affordable
products and services.

Following intellectual property norms – By getting in touch with the following measures as
discussing one of the most adequate tool such as patent. This will allow securing business from
broad range of external environmental factors and challenges (Portuguez Castro, Ross Scheede
and Gómez Zermeño, 2019).
Step 3 – Timeline
It can be clearly stated that desired goal of business will be accomplished systematically in time
period of one year as getting suitable aid from sales ratio and customer base.
Step 4 – Delegating resources
All the essential resources going to be utilized by business are likely to be termed as financial,
human and physical resources in order to make innovative concern more lucrative.
Step 5 – Evaluating the process
To gauge the overall process made in the business in the context of selling innovative goods
within online grocery sector of UK, the sales profitability and customer retention rate will be
considered in this part for the period of time (Isaeva and et.al., 2022).
CONCLUSION
From the above report it has been identified in depth about the process of innovation and
commercialization which depicts that both the terms describe numerous ways in which new
technology and products can be developed or introduced. This report has covered potential way
in which innovation is fostered in the context of chosen retailers. Furthermore, it highlighted
over the broad assumptions which shows detailed analysis for type of innovation. All the process
are fundamental in their own way which assist to introduce the product in the market effectively.
The failure and success of innovation has been determined in the context of both retail
organizations conducting their business practices in UK. However, it aids to serve new grocery
retailer with further recommendation for launching new product supported with risk and benefit
analysis. It has also suggested appropriate funding channels with analysis of business value to
generate potential investments. It is mandatory for business to protect their intellectual property
aligned with the process of innovation. Lastly, it sums up with action plan which specifies the
further recommendations and ways to secure them in broad environmental context.

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