Managing Innovation: Blue Ocean Strategy and its Application in OLO

Managing Innovation

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Blue Ocean Innovation theory................................................................................................3
Processes for Blue Ocean Strategy ........................................................................................5
Application of Blue Ocean Theory in historical development...............................................9
Application of Blue Ocean Theory in Future development context.....................................13
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Innovation in the today's competitive world is a significant strategy used by the business
firms to opt for a differentiation and creative products and services which in turn helps is
developing and creating competitive edge in the market. Innovation is defined as the process of
practical implementation of invention ideas that in turn results into introduction of new goods
and services or binging necessary changes into the existing offerings to add more value for
customers and generate profits for the company (Corsaro and Maggioni, 2021). Business firms
may look forward to develop a price leadership strategy or differentiation strategy where in both
the cases innovation is required to enhance the competitiveness. Blue ocean strategy in
innovation is creating and capturing entire new and uncontested market space to introduce new
products and services which have not been existed before and are offered at low cost, thus
making the competition irrelevant. Under Blue ocean strategy demand is created by the
companies rather than fight over it and has huge potential for the further growth and profit.
Main Body
Blue Ocean Innovation theory
Blue Ocean Strategy opted by the companies to enhance their competitiveness is defined
as the new market place for the products and services where there are minimal companies
operating into industry for the with a little competition prevailing. This strategy revolves around
the looking for a business in the relevant market where there are few business firms are operating
with no pressure over price. OLO is a B2B software as a service company based in New York
which has evolved with the help of Blue Ocean Strategy where company have identified the
business idea of placing order and delivering requests programmes for some of the well known
and well established restaurant. The company enables customers to place restaurant orders for
multiple sources such as brand's own website, an application, social media platforms or from any
other third party market places (Peerally, De Fuentes and Figueiredo, 2019).
With the help of Blue Ocean Strategy, OLO has focused on the strategic organisational
approach which is based on the principle of focusing on uncontested market with a new products
and services along with exceptional features and quality rather than engaging in competitive
struggle and invest efforts in reducing costs, improve profitability and facing cut throat
competition. There are basically six major principle of Blue Ocean Strategy which guided OLO