Disruptive Theory of Innovation in Just Eat

Innovation

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Explanation of Disruptive theory of innovation..........................................................................1
Explanation of historical development of product in Just Eat.....................................................4
Application of theory for possible future development pathway for future................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation refers to introduction of new idea, thought, technology, product, service in market
which is completely new concept for a firm. It helps them in reducing cost of business and also
in increasing profitability level of an enterprise (Chesbrough, 2017). This innovation attracts
customer segment towards company and provide them competitive advantage which helps to
over come from other market player existed in market place. Innovation also improve production
technology which helps to reduce over cost of operation process in a firm. It also assists
managers to bring differentiation for their product as well as business in market place from other
market players in industry. This innovation not only provide benefit to business but also to
customers as well as economy of country. This innovation creates employment opportunity in
market place. It also contributes in gross domestic product of country and contribute in taxes
which is important for welfare of people living in that country. This project report include study
of Just Eat which is established in the year of 2001 by Jesper Buch. Organisation is providing
services in various countries and provide facilities like take away restaurants, order placement,
online payment. Company is also using different types of technology including artificial
intelligence and augmented reality. This project report includes explanation of theory of
innovation in business. It also includes historical product development of product of enterprise
along with future development of product in market place.
MAIN BODY
Explanation of Disruptive theory of innovation
Disruptive innovation is one of innovation theory which is introduced in the year 1995 by
Clayton M. Christensen who is American Scholar. Disruptive innovation is based on creation of
new market as well as value network which disrupt previously exited market as well as value
network and displace well established market, leading firms, their products and their alliances.
Disruptive innovation is one of term of innovation which helps to transform expensive products
in more affordable product (Glückler and Bathelt, 2017). These expensive products are highly
sophisticated and is previously available for skilled and high market segment of customers
whereas affordable products are accessible for major market population. This transformation
create disturbance in market place through displacing established market players in market.
Disruptive innovation is not based on improving product and service of previous target market
1

instead it includes use of technology which is easy to use as well as available to large non target
market. There is some requirement of this disruptive innovation theory which are as follows:
 Enabling technology: Enabling technology in business is used for purpose of bringing
substantial change as well as to improve process of doing things (Harper, 2018). But in
disruptive innovation, enablement of technology is innovation that helps in affordability
as well as availability of product and service in market place. Disruptiveness of market
depends on development of technology and improvement in it.
 Innovative Business Model: Innovation business model is one of model which use
innovation in target market customers. These market segment does not generate profit for
business and dos not buy their product as offering of business is not affordable for them
and is not sophisticated for them to use.
 Coherent Value Network: This network includes both upstream as well as downstream
partner for business which get benefit form disruption. It is important for suppliers,
vendors, distributors to reorganise process change for purpose of adaption to new
business model.
Disruptive innovation is related to exiting product and service offered in market and is
measured through traditional value metrics (Gobble, 2018). In initial level, when disruptive
innovation introduced in market, it does not provide large profit to a company and focusing on
high demand customers. Demanding customer is one which has higher profit level and well-
established market players are focusing on them as they are more profitable segment. Value for
disruptive innovation is mainstream as well as high customer segment are minimal at this time at
S-curve at in bottom level. There are various characteristic of this model and these are as
follows:
 This theory includes low level of profit margin ain beginning and helps an organisation in
access to various opportunity in market. It also includes high risk in implication of this
theory to business.
 This theory includes new business model and new technology in company and is based
on create disrupts in existing market or in new market segment within existing one.
Benefits of disruptive innovation: There are various benefits that a business get from adoption
of disruptive innovation model. These benefits are as follows:
2