Managing Innovation

Managing Innovation

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Blue Ocean Strategy...............................................................................................................3
The steps that are followed to formulate Blue Ocean Strategy..............................................4
The two conditions required for disruptive innovation through Blue Ocean Strategy...........6
Advantages.............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
Books and Journals...............................................................................................................11

INTRODUCTION
As the world is dynamic it is vital for all the business organisation to understand the
importance innovation. To compete in this market full of competition it is vital for business to
regularly innovate the products and service that are offered by the company. Innovation is an
idea that is being converted into the business (Ravichandran, Han and Mithas, 2017). It helps the
organisation to achieve success. It helps in development of product to serve the customer needs
better. This report is based on CAZOO which is British online car retailer that has headquarters
in London, UK. The company was founded in 2018 by Alex Chesterman. The company has
around 1750 employees. There is discussion related to innovation used by CAZOO. The
explanation is supported by I innovation theory that will help to understand the historical
development as well as recommendation related to future development pathways of the products
offered by the company.
MAIN BODY
Blue Ocean Strategy
It is a strategy that is based on creating differentiation. The focus is to open a new market
by cutting cost so that there is new demand in the market. The strategy says that it is not
important to fight with the competitors the task is to eliminate the competition and become the
leader. It is a way of marketing and bringing innovation so that the company is able to form
strong share in the market (Aarikka-Stenroos, Jaakkola and Harrison, 2017). The same is used
CAZOO as the company has come up with an innovative idea to serving the customers and
letting them buy the cars online. The customers do not have to move out they just have to select
the car and the same will be delivered to their doorstep. The key points that are covered under
the blue ocean strategy are mentioned below:
It’s more than theoretical: It is a strategy that is not only based on theory it really
implements the planning. It is originated from a study that covers strategic planning g model.
Thus strategy is formulated and based on proven ideas and not unproven ones.
The competition is irrelevant: The target of a Blue Ocean strategy is not to outperform
the competition or to be the best in the industry. Instead, the goal is to redraw market lines and
operate within the new area, effectively eliminating competition. It is a new concept as all the
previous developed theories always helps to gain lead over the competitors, Blue Ocean Strategy

focus on eliminating the competition and starting something new innovative that is not seen or
used before.
Differentiation and low cost can coexist: Consumers don't have to pick between value
and affordability, according to the Blue Ocean Strategy (Lee and Trimi, 2021). Differentiation
and low cost can both be accomplished if a business can recognise what consumers actually
value and then rethink how to deliver that value. This can be termed “value innovation.” If the
customers will het both value product at affordable price then the customers will buy the product
or avail the service from the company.
A framework to test ideas: The Blue Ocean Idea, which is part of the overall approach,
helps organisations to determine the economic potential of their proposals. It helps to check the
feasibility of the idea and its future (Eastwood, Klerkx, Ayre and Rue, 2019). This approach
helps in the refining of proposals and the discovery of the most attractive prospects while
reducing the risk.
The use of this strategy is beneficial for an organisation as it helps the company to
understand the needs and wants of customers. The target is to serve the customers and to provide
them best and innovative services (Ingram, Gaskell, and Dwyer, 2020). The discussion is related
to CAZOO the company owns and fully re-conditions the cars before selling them to the
customers. The buyers are able to search the cars like any other product online. Buyers will
complete the entire transaction online, including obtaining instant finance and receiving an
instant bid on every part exchange. A free comprehensive 90-day warranty and roadside
assistance are both included with any CAZOO vehicle.
The steps that are followed to formulate Blue Ocean Strategy.
It is important to know the steps that are used to create blue ocean strategy. These steps
help the company to successfully understand the market and use the strategy. The steps are
mentioned below:
Select the right scope: This is the first step that focuses ion first understanding the scope
of the business. It is one of the important steps in which company takes initiatives and identifies
what they are really planning to do (Nguyen and Hoang, 2021). In this strep the team is
established that conducts the research in the market and builds confidence on what will be done.
In this regard CAZOO Company also first identified the need of customers related to cars and
understands the scope of the business.