Managing Innovation: Blue Ocean Theory and its Application in TikTok

Managing Innovation
Assessment

Table of Contents
Introduction......................................................................................................................................1
BLUE OCEAN THEORY...............................................................................................................1
Definitions, Principles and Processes of Blue Ocean Theory................................................1
Evaluation of the Theory........................................................................................................3
APPLICATION OF THE THEORY...............................................................................................6
Company Background............................................................................................................6
Historical Development..........................................................................................................8
Future Development...............................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
Innovation refers to aspect that is associated with creating new products, technologies,
services along with processes for adding up value within the existent offerings so that dynamic
requirements of customers can be accomplished in an appropriate manner. Basically, it implies
detailed aggregation of different techniques, methods and processes for enhancing their
usefulness (Barbosa, 2020). Innovation is an imperative aspect that must be executed for
ensuring that relevant standards of productive as well as added features are included in existent
liabilities. The rationale of opting for innovation within working premises is to amplify
sustainability along with having a competitive positioning in the marketplace.
In this context, report is based on TikTok that is Chinese social networking service in
which videos is shared and is owned via ByteDance. In this case, different short videos based on
distinct genres such as education, comedy and dance are made. The innovation has been offered
where people can post their videos and others can get entertain. The report will furnish
applications related with Blue Ocean strategy, that is innovation theory in which emphasis is
made on creation of uncontested marketing space that is liable for creating irrelevant competition
in the organisation. The report will provide overview of theories and their applications in
different perspectives.
BLUE OCEAN THEORY
Definitions, Principles and Processes of Blue Ocean Theory
Definition
The Blue Ocean Strategy is defined as consistent process for differentiation and also acts
as a low cost substitute that will enable firms within creation of new demands in the marketplace
where they deliver their offerings. Moreover, the notion behind working of this theory is to
capture market places which are still unchallenged that makes competition irrelevant for the
organisation. The other crucial notion that is being maintained via this theory is industrial
structure along with boundaries in the market that can be reconstructed by the firm that opts for
this strategy (Biemans, 2018).
Principles behind Blue Ocean Theory
There are two terms that are widely used within this theory. Red Ocean is one that
implies the sectors who have certain existence in the market at present scenario; this is also
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defined as market space. In this case, boundaries are clearly specified and are accepted via
businesses that are involved within delivering their services as well as opts for certain
competitive rules that must be adhered by organisation while rendering their services in the
industry. In context of market space, competitive edge will be attained via acquisition of shares
of the market by accomplishment of existent demands (Dodgson, 2018). But profits are declined
when industry gets over crowded with multiple firms.
With reference to term, Blue Ocean, it denotes all the sectors that do not exist yet and are
still unknown along with this are free from any kind of competition in between firms. The
demand or needs in market are not fought instead they are being formulated by the strong players
related with peculiar industry in the marketplace. The flexibility that is rendered by particular
sector is very high as this operates within restricted or no boundaries (Wikhamn and Styhre,
2020). The certain principles or features associated with Blue Ocean Theory are mentioned
below: Unknown Market Space: This is prominent feature associated with blue ocean strategy
that implies market is not known yet. The reason that lies behind this is that there are
certain unexplored areas in the market that have not been taken up by any organization to
work on as of yet. No Competition: This is another principle of the strategy blue ocean that organization
have to enter within those market strategies which have not been explored. This clearly
implies that probably there is no competition as this will be new zone that will be brought
up by the organization. In addition to this, the rationale that is related with this aspect is
creation of new demands by opting for blue ocean strategies. This means that blue ocean
is liable for making competition irrelevant. Differentiation: This principle is related with having consistent differentiation in
offerings that will enable organization to develop a new market space that is still not
explored within the market by others (Goolsbee and Krueger, 2015). In addition to this,
this is important that a platform is created in culture of organization for inspiring
extensive market research for identification of gap that exist in market for creation of
fresh demands. Development of Demand: This is crucial for organisation that they make use of Blue
ocean strategy in order to create new demands among their potential customers. The
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