Innovation and Commercialization in Online Grocery Retailers: A Case Study of TESCO and Waitrose

Innovation and
commercialization

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Discuss the ways in which different organizations source and foster innovation by utilizing
specific examples........................................................................................................................3
Detailed analyses and discussions on type(s) and process(es) of innovation in each of the
selected retailers. .......................................................................................................................5
PART 2............................................................................................................................................7
Recommended innovative products/processes for a new online grocery retailer, supported by
innovation risk and benefit analysis............................................................................................7
Suggestion of funding channels for the recommended innovation, supported by analysis of
business value for potential investment....................................................................................10
Recommendation of tools to retain/ protect the knowledge and intellectual property (IP),
generated through the innovation process above, complimented with a critical evaluation of
the tools.....................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Commercialization is defined as the procedure which is helping the companies and
businesses to generate extra revenue and helps in enhancing the efficiency in the business
operations. Commercialization helps the business in rendering new and innovative products and
services in the market. Innovation and commercialization are inter related to each other, as with
the use of new ideas the businesses enhance their profits. Innovation is simply defined as the
changes made in the existing products or services. Whereas commercialisation helps the
businesses in introducing these new and innovative products in the market for fulfilling the needs
ad wants of the customers (Altaf, e Hassan and Batool, 2019). Innovation is often confused with
the term invention, whereas invention is introducing new products and services in the market.
Invention is said to be something new which has not been in existence. This report is the analysis
of two online grocery retailers who have considerable share in UK markets. The businesses
evaluated are TESCO and Waitrose, leading grocery retailers in the British markets. TESCO is a
multinational grocery store headquartered in Welwyn Garden City, England. Waitrose and
Partners was founded in 1904, and has headquarters in Bracknell and Victoria, England. This
report is the critical analysis on how the innovation is sourced and fostered by both the
companies. Further in this report types and processes of the innovation are discussed along with
the evaluation of the 4P's of innovation. This report also describes the business case of both the
companies, which will further help the managers to analyse the business situation. Businesses
also require investment sources so that they can expand their business in new markets and can
acquire new customers.
PART 1
Discuss the ways in which different organizations source and foster innovation by utilizing
specific examples
Foster innovation- Fostering innovation simply means being adaptable to new ideas and the
technologies which are not explored by the businesses in their business operations. Fostering
innovation is important in the business, as it helps in attracting new and talented workforce and

retain old employees. Individuals are attracted towards the companies which are engaged in
producing new and innovative products in the market.
In an organization it is important to identify the factors which are helping the organization in
shaping the innovation and commercialization (Asgari, Zakery and Pishvaee, 2021). For a
business it is important that they train their personnel to be more creative and encourage them to
introduce new ideas and thoughts in the organization. Business are engaged in the activities of
producing and selling the goods and services, for fulfilling the needs and wants of the customers.
Businesses perform these activities to achieve their goals and objectives and earn higher profits.
Several factors which helps in shaping the innovation and commercialization are-
 Vision- Vision of the organization helps it in making strategic plans to achieve success
and fulfil the needs and wants of the customers. Vision statement also helps the
employees to have a clear understanding of the goals and work hard towards them.
Vision of TESCO is to create quality products for the customers and create brand loyalty
towards the customers and the stakeholders. Vision of Waitrose is to be a successful
business and produce unique products and services for the customers.
 Leadership- Leadership qualities are pertained by the individuals which helps them to
influence other employees of the company. A good leader helps in enhancing the skills
and interests of other employees and motivate them to do their work efficiently. Both
TESCO and Waitrose are using democratic leadership style, the decisions are taken after
hearing all the aspects from the employees. In this type of leadership style, employees
uses two- way communication and management tends to listen to the subordinates before
taking the decisions.
 Teamwork- Teamwork plays a vital role in achieving goals and objectives of the
organization. It is important for leaders to motivate their member to coordinate with the
team and get to know each other. Teamwork helps in promoting the trust and loyalty
between the members, and prevents misunderstandings between the members. The
leaders at TESCO respect the ideas and thoughts of the employees and help them to build
strong relationships. At Waitrose the managers aims at autonomy within the decision-
making process and encourage their employees to express their thoughts.