Managing Innovation: Application of Disruptive Innovation Theory in Terracycle

Managing Innovation
Assessment

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................2
Disruptive Innovation Theory.....................................................................................................2
Application of the Disruptive Innovation Theory in the historical development context...........6
Application of the Disruptive Innovation Theory in the future development context................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................12
Disruptive innovation theory....................................................................................................12
Applied Disruptive innovation theory.......................................................................................12
Business Canvas Model............................................................................................................13
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INTRODUCTION
Managing innovation is refers to the process of handling all the activities that required to
introduce something innovative within the company. Mainly, it is combination of management of
innovation process that help company in improving their performance and at the same time also
developing its competitive image at market place (Au and Tucker, 2018). One of the main
advantages of managing innovation is to capturing larger market share by serving quality
products and services. Current project is based on Terracycle, is a private recycling business
operate their business in Trenton. It run a volunteer-based recycling platform that focus on
collecting non-recyclable pre consumer and post-consumer waste. In this relation company use
various theories to develop their brand image at market place. The report tends to cover suitable
discussion on the disruptive innovation theory considering the effective understanding and its
concept which is concerned with the prominent benefit and limitations to the company. Along
with this, the theory is applied on the historical and future in terms of Terracycle.
MAIN BODY
Disruptive Innovation Theory
Disruptive innovation theory is an effective strategy that refers to the simultaneous
pursuit of bringing new product within the market considering the effective and suitable
presence. One of the main purposes of using this type of strategy is to creating as well as
capturing market space. With the assistance of this, company can attain competitive advantage
over the competitors by serving innovative products and services in new market. In addition to
this, it is also revolving around searching a place where in very less firms are operating and there
is no pricing pressure.
As per current business environment, most of companies are operate their business under
intense competition and at the same time also tries put their efforts for attainment of larger
market share. The primary aim of this type of strategy is to capture new demand, making their
prominent presence and also make competition by introducing products with attractive and
superior features (Gündüz, 2018). By this company can easily invite more and more customers
towards its offering sand also make huge profits.
In relation to this, if Terracycle use this type of strategy then involvement of new features
and uniqueness so that company can increase the competition level at market place. This type of
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activity can also increase the possibilities of capturing larger market share from its competitors.
Mainly, this strategy includes Value Innovation, differentiation and low cost that help in
improving the profitability level of company at market place. Thus, it is significant for the
business organisation to analysis the new market before introducing their new products in new
market so that company can identify the area of opportunities. This will assist in developing the
competitive image of company at market by capturing larger market share.
As per this theory, there are four prominent concept which are significantly used by
individuals for prominent application of theory in business. The process and concerning steps are
mentioned as:
 In modern times, business environment innovation is quite trendy and also basic tool that
tends to change and grab existing business opportunities. Therefore, business tends to
make effective innovation in their products to address the demand of market in terms of
gaining profitability. For this, company need to ignore the needs and preferences of those
customers which they do not target (Rofiqi and Kolis, 2020).
 For this, the business entrants tend to focus on the start-up's and also focus on the
downmarket social groups by considering their requirements in terms of having effective
target market to address the significant requirements in comparison to before and
effectual manner.
 For this, organisations need to focus on the profitable customer base and audiences ignore
the new individuals by not considering them as the competitor.
 After that, entrants tend to make effective use of Disruptive innovation theory by moving
upward in terms of offering better solutions to the other segments and social groups
considering the effective profit of customers.
 Market is attracted and also tends to made the presence for new entrants that becomes the
disruptor for the incumbents and become their significant competitor for the longer
period of time in terms of changing attitude and core competencies with suitable
innovation and development (Biemans, 2018).
Therefore, in regard of this, theory it is applied for not have prominent attempt in terms
of bringing better products and services in market which is placed for disruption and also tends
to redefine the mechanical factor of business by developing effective offerings which is of low
value in comparison to having presence in market and also offer lower cost products to customer
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