Biomass Grower Market Analysis

This assignment delves into a market analysis of biomass growers. It utilizes Porter's Five Forces model to assess competitive landscape, applies Value Chain Analysis to understand operational strengths and weaknesses, and examines various commercialization strategies employed by biomass growers.

MANAGING INNOVATION
IN BUSINESS

EXECUTIVE SUMMARY
Above report will explain about innovation and growth of a large organisation. Morphy
Richards is a very renowned and old organisation which is working in the field of manufacturing
electronics items. The development of organisation is being shown through timeline which
shows that company has effectively adjusted themselves in changing environment. They have
gone through mergers and acquisition to maintain their value and expand in new market.
Company has always tried to increase their dominance in market through inventing variety of
products. For better analysing growth of organisation they have effectively performed PESTLE
and SWOT analysis and make adequate planning and changes by analysing their outcomes.
Through value chain analysis functioning and strategic analysis are considered which gives
detailed information of management of and regulation of their business. This report has also
pinned down current status of country and what are their future innovative investment plan in
future market. There are adequate information provided about their strategies and approaches
which they can use to be success in future ventures(Aarikka-Stenroos and Sandberg , 2012).

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Overview of the Chosen Organisation - Morphy Richards and their innovation history.......4
Importance of elements of 4Ps .............................................................................................7
Organisations innovative performances and Capabilities....................................................10
Vision of industry beyond 2017 .........................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is defined as transforming new invention, creativity and idea into desired
services and goods for which a customer pays. This assessment has thrown some light on
innovation practices adopted by Morphy Richards (company that deals in home appliances)
according to changing market scenario. Report also indicates performance of organisation in
internal and external sector through different analytical tools. Tasks will only focus on
development and innovation of company over the years (Bagchi-Sen , 2010).
TASK 1
Home appliances are household goods which includes electrical and mechanical
machines for accomplishing household function. These appliances are divided into 3 broad
categories.
 Major appliances – Includes large machines like washing machine, refrigerators
 Small appliances – Hand blenders, toasters, coffee makers.
These appliances have made life of people easier by helping them in household
activities. Using appliances one can reduce time in their day to day activity. With advancement
of technological prospectives in mechanical and electronics & electrical products many new and
advance appliances has come up to make life of people easier. From recent surveys and stats it is
being found that this industry is estimated to be 590 Billion US Dollar industry by 2020. Home
appliances company have faced ups and down over the years. For example their turnover has
declined form 52Billion Euros in 2008 to 44Bilion Euros then increased up to 48billuion Euros.
This ups and down may due to innovation in business. It is observed that over the years market
of home appliances are being dominated by large firms as they are being entrusted by majority of
people across Europe.
Overview of the Chosen Organisation - Morphy Richards and their innovation history.
Morphy Richards was founded on July 8th,1936 by Donald Morphy (Engineer) and
Charles Richards (Salesman). When industries started developing after the great depression in
1929, many small and large companies come up with their innovative ideas in market. Certain
electronics products like toasters, irons, fire first etc. came into daily use. But they were very
expensive items and not affordable to common households. These two people have innovative
ideas and view to make them available to common people. The organisation is successful due to

its demand forecasting measures and able to implement their innovative ideas time to time in
business activity, this is an important aspect of their suitability in business market. Morphy
Richards has kept pace with innovation in their products,therefore there irons are very popular .
The company keeps on inventing new irons according to demands of the clientle. In the
beginning of 1950 with advancement of steam company has innovated steam irons.
 1950- In 1950s irons are basically made up of steam
 1960- With advancement of electricity Morphy Richards have started manufacturing
different irons with electricity only
 1970- The have identified that irons are very heavy weight and consume lot of
electricity. They stared replacing iron plates with aluminium.
 1980-2000 – It is era of modification of other appliances instead of iron Current – Currently they are developing different light weight irons
Factors causing innovation in Murphy Richards steam irons.
Main factor of using steam iron is advancement of steam that is very cost effective and
increasing in demand of coal.
The 4Ps of innovation and changes in them over a time
Timeline: - 1930s – The organisation has started in the mid 1930s with the view of
making reasonable and quality product so that they can be used by ordinary people.
Changes – They have mainly focus in making innovative electronics in new markets.
Some of the initial products of Morphy Richards are bread maker, toaster, refrigerators
etc.
 1940s – It was a period of war so the company mainly dedicated to take contracts from
government to make aircraft components which help UK government to manufacture
large volume of aircraft. After the war ended, they launched themselves as a public
company in 1947. They merged with Astral ( a Dudlee Based company which produces
spin dryers and refrigerators)
Changes – The company has focus implementing new ideas and making innovative
products and after merging with Asteral (company in UK ) they have a clear view of
expanding their business in several places .

 1950s - In this era, they tried to work with steam in their business. They mainly focused
on making new model of iron e.g. bevelled sole plate irons and with comfortable grip and
pilot lights.
Changes- In year 1954, they have invented their own iron including their boilers which
can generate steam for 25 minutes.
 1960s – In the early 1960s, Donald Murphy has planned to sell his shares on EMI and
prompt others to take over their business and Charles Richards joined GEC as their CEO.
Their new director Wills Roxburgh was proactive in approach and planned to expand
their business in domestic appliances.
Changes – With the new CEO, there was changes in strategy and focus on capturing
different markets while increasing their productivity and regulate pricing strategy.
 1970s – In this era, Morphy Richards has become one of the largest home appliances
organisation. They have annual turnover of over 50 million euros and more than 10
thousand employees. In 1975, they have merged with Schreiber Furniture and named it as
Hot point.
Changes – This modified strategy has increased their presence at global platform and
their brand value started increasing globally. In this era, they have increased their
production by setting up manufacturing units at different places.
 1980s – The company was sold to Capital of Industry for 5 million Euros which was part
of Throgmoton Trust. Prime aim of organisation is to manufacture new electronics items
like radio, cassettes etc.
Changes - From manufacturing more number of appliances, they have entered
entertainment industry by innovating quality electronics products.
 1990s- In this era, they have primarily concentrated on enhancing their brand value and
captured new markets.
Changes –They capitalised on increasing values and sales of innovative products.
 2000s – It was the difficult phase for the company as it was getting stiff competition from
other small scale organisations in terms of both electrical and electronics products. This
has decreased their dominance in Asian countries; apart from this, Marlborough Flood
has damaged their manufacturing site.

Changes – Due to competition and flood, other companies have captured the market and
value of product and brand decreased in market. Development of Morphy Richards has
been pinned down and what impact it has on 4Ps has been mentioned (Bogers and West , 2010).
Importance of elements of 4Ps
Process – It is seen that an effective business process with ethical approach will increase
goodwill, loyalties and values in market which will aid the organisation to expand in their
business in different destination
Product- Morphy Richards has a wide range of home appliances in both electrical and
electronics form. In future venture they want to modify and add value to their product and
increase their sales in different market.
Position – Positioning and placing product in market is equally important. It is observe
that company has a very effective analysing and market forecasting wing which aid them to
study the market in effectual way. The team has predicted that company has captured European
market for a very long time but they are not able to increase their root in other continents. So that
company can increase their growth and have better position in market.
Production- It about enhancing their production. Company have been effectively
working on increasing their sales by increasing number of appliances which a person can use
daily. They have a future plans to increase their productivity of each appliances by modifying
them by implanting latest technology.
Better planning of these prospective will help organisation to make progressive plan in future
business venture (Gambardella and McGahan, 2010).
PESTLE Analysis : It is used to study external environmental factor that affect process of
business activities
Political Factor Technological Factor
 Morphy Richards will get affected with
coming of Brexit in business in UK as
government will change different
different trading practices and support
small scale organisation to grow in
business market
 It deals with technology and
innovation. Company from their initial
years are making innovative products in
home and appliances company. Some
of their innovative products includes
irons, refrigerators washing machines.

 They have to change their business
strategy with change in business
policies. This will decrease their
revenue base.
 Several laws that have been made by
EU will not be applicable so adjusting
to new laws will be a complicated task
The are planning to use embedded
programming and ARM features in
their product to add more innovative
features .
Economical Factor Environment Factor
 Economy of any country effect working
of a company. Morphy Richards is
dealing in different home appliances
but they are not much successful in
Asian countries because cost of their
products are very high as compared to
economy of that country.
 Certain economical factor which
includes interest rate, inflation rate,
economic growth rate must be
considered while investing in new
business environment.
 Company is focussing on
environmental factors like nature,
weather, geographical location that aids
them for effective inventory
management and make modified
product.
Social Factor Legal Factor
 It determine social culture and culture
aspect of any business environment.
These environment includes cultural
trends, demographic differences and
population analysis. Morphy Richards
through their business journey thy to
understand types of customers and their
needs and make strategy accordingly
 Morphy Richards over the years have
followed legal aspects and policies of
government that reflects in their merger
and acquisition also. There are low
number deputes and and clashes in ling
history of company.

Porter 5 step model - The model is used to analyse and study external factors of organisation.
This model is divided into 5 parts
Illustration 1: Porter 5 step model
It contains 5 factors like:
 Threat for new entries – In late 1980s when the organisation is planning to improve
their base new organisation have started making their way in same business e.g. Dyson
and Retail Stores own brands.
 Bargaining power and suppliers – They have good trading practices and relationship
with their suppliers and customers.
 Bargaining power of buyers – It is about purchasing power customers in organisation in
a given market.
 Threat to substitute products – Morphy Richards deals with a wide range of products
so organisation must consider that every product makes value in market.
 Rivalry – Morphy Richards is a large organisation it will have rivalry from many large
and small organisation in business market (Godin, 2012). Philips is the oldest rival of
Morphy Richards. Its a Dutch company that was established in 1891 and giving stiff

competition to company in manufacturing and sales activities all over the world in
versatility of home appliance products.
Organisations innovative performances and Capabilities
Morphy Richards has in current marketing scenario have planned to invest in kitchen
electronics appliances. The latest range of product of company is kettles, toaster, mixer grinder,
sandwich maker, geyser etc. and wide range of other electronic home appliances. The company
has managed to make business in collaboration with other local company who deals in same
products e.g. In Qatar company have collaborated with other organisations like Jumbo
Electronics, Spark Lifestyle Electronics to sale their digital electronics product in their market.
Due to their effective business policies they have managed to earn revenue and increase their
brand value in market. In case of India the company has a joint venture with Bajaj Appliances to
sell their product in business market. By current analysis of business policies of organisation a
SWOT analysis is being done.
Swot Analysis
Strength
 Morphy Richard is dominating the
market over 80 years, They have a wide
range of home appliances in current
scenario company is focussing on
investment kitchen appliances
 The company has lots of mergers over
the years so they have a large numbers
of manufacturing units of research and
development working worldwide
 Company manufacture both electrical
and electronics appliances so they can
make a large variety of products over
the year
 They have a very effective human
resource management so there are not
many conflicts while dealing with other
Weakness
 The company has a wide range of home
appliance product so they cannot
concentrate on every product in market
place. This can cause heavy lose in
their business activity.
 Organisation can face stiff competition
in Asian market as there are many
small scale organisations that have
come up with same range of product at
smaller range.
 The organisation has gone through
many acquisition and mergers so their
bring values decreases over the time.

organisation.
 The company is a part of $1.3 billion
Glen Dimpex Group so it has a very
large financial base
Opportunity
 Morphy Richards can collaborate with
local organisation and sell their
products e.g. company has planned to
collaborate with Bajaj Electricals for
next 3 years to sale their wide range of
products.
 Company has a wide range of products
they can invest in new markets like
developing countries of Asia and
Africa
 They can also invest in heavy
electronics industries as they have
large manufacturing units across the
globe
Threat
 Small and large competitors are major
threat to organisation e.g. Dyson, UK
electronics, GB electronics, OSI
electronics etc. these organisations are
working on latest technology in
electronics by implementing advanced
features in their products.
 The company is working on
modification of their technology instead
of adopting smart technology. This can
turn to be a disadvantage for them e.g.
There latest product is a toasted with
modified features on the other hand
Godrej an Indian brand is using
Artificial Intelligence in operation their
product.
Strategic capabilities – it is defined as a way through which an organisation is capable of
implementing their strategies to good effect. The strategies are only considered as successful if it
benefits both, company and customers. So it is very necessary for organisation to provide value
product to their customers to increase their capabilities in doing their business in effectual way.
There are different ways through which values are analysis significantly (Bogers and West,
2012).
Values of strategic capabilities – The organisation always try to put values to their
product. Company has able to maintain to manufacture and sale innovative product in market

which has increased brand loyalty of customer towards the products. They have created a large
variety of product in business market which has made life of people easier.
This can be analysed by Value Chain Analysis which provides a network between buyers,
platform and network. This framework is designed to observe every aspect of relationship
between customers and organisation. The value chain analysis also helps in observing and
regulating the coordination between different function of production elements like technology,
inventory, logistics and transportation. This will help them in deep penetration of market and
increase their growth. The major challenge for an organisation is marketing. Adopting better
marketing technique will increase reach of company to markets in different geographical
boundaries. By analysing and choosing effective medium of media will increase their reach. For
example in many African countries digital communication is not that much used so printed
medium will be an effective source of promotion

Illustration 2: Value chain analysis
Unique Strategies capabilities- for sustaining in competitive market it is important for
organisation to have some different capabilities so that they can stand apart and rule in market.
Morphy Richards has a very good reputation to sustain market. The enterprise has a very good
organisational culture and equally able research and development team. This makes them unique
in competitive market.
Inimitable strategies capabilities – The organisation has a very long cultural history.
Feature of their durability that they have changed and implemented new and innovative ideas in
market. But they have been able to implement ethics and values in their business policies which
has increased customer loyalty towards their organisation.
Vision of industry beyond 2017

Technology is a biggest factor in shaping future of home appliances. Advancement of
electronics has a very important role to play. In current scenario they are using embedded
programming which will provide control of that appliance from anywhere through
mobilephones. In the given report all the aspects of organisation have been mentioned. Going
through the report it can be understood that the organisation has a very long history of business
in different appliances. The company has future goals in doing their business in home and
kitchen appliances. For increasing their sales in South Asian country they have collaborated with
local electronics company to increase their sales. Some of the feature products of the company
are:
 Smart irons with advanced technology
 Electric blankets
 Improved electronic kitchen appliances like kettle, toaster, mixer grinder ,
 Daily use appliances like razor, hair drier, wax heater etc.
These are some of the important electronics appliances the company is focussing on.
They have target to capture many small and large market in Asian and African Countries.
Due to globalisation many people in developing countries have been able to access
global product very easily. As cost of living of people in Developing Countries Company sensed
that they can make profit from these market. But before investing in market of developing
country company must know competitors in business market. In case of India it is not possible
for Morphy Richards to come and establish their own base. They will face competition from
local firms like Usha, Bajaj, Orient etc. So they have collaborated with Bajaj to perform to sell
their product.
It must be understood that for better running of business activities and growth in business
activities industry must analyse both internal and external factors of organisation. Every
elements of 4Ps like process, product, position and production can be considered for making
effective business strategies in business market. Company is having a large range of appliances
so they must capitalise on every products for that company have to make effective management
decisions. They have bigger threats form small scale and local organisation. They must
concentrate on giving best product at reasonable price. By SWOT analysis it is observed that
many small scale companies have come in business market so company must plan to make
innovative products and sell them at reasonable rate. Through this they can be able to increase

their base in new geographical boundaries. Instead of going for further acquisition and merges
they can invest in research and development practices do that they do not have to collaborate
with local companies to do business in Asian market. By PESTEL analysis also it is understood
that they have problem in doing business in local Asian and African market due to high prices.
By analysing this report is is recommanded that company have to work on decreasing prices of
product to increase their business worldwide.
CONCLUSION
This assessment has discussed history and performance of organisation over the years of
Morphy Richards. The organisation has increased their sustainability and growth in market with
developing innovative ideas in different time intervals. A SWOT analysis is also done to
examine different elements of the company. Capabilities of organisation have been discussed
through Value Chain Analysis and their efficiencies have been examined. Finally at the end
vision, strategies and future goals have been analysed based on performances of 4Ps (price,
production, position and process). Innovation is a very vast concept which provides abundance
of opportunity for exploration in future run.

REFERENCES
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Online
Extension (2018) Market analysis for biomass grower. [Online]. Available
http://articles.extension.org/pages/74626/market-analysis-for-biomass-grower [accesed
14/03/2018]