Managing Innovation: Theories, Strategies, and Case Study of Dyson Company

This report explores the theories and strategies of innovation, including diffusion of innovation theory and blue ocean strategy. It discusses the historical development of innovation and analyzes the case study of Dyson Company. The report highlights the importance of innovation in driving success and differentiating businesses.

Managing Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Theories of Innovation.................................................................................................................3
Innovation theory in a historical development context................................................................8
Innovation theory in the future development.............................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation can be defined as the process of comprising and implementing multiple
activities to explore new ways of influencing people lifestyle. Aim of the innovation is to deal
with people issues to fulfil their expectation and design the world as better place whereas they
can receive all value-added experience. it plays huge role in organization to develop dynamic
capabilities in individuals that supports to take competitive advantage as well as differentiate
brand from others in the business market (Leavy, 2018). Most of the companies implement such
process on their organization to transform their imaginary dream into realistic form such as
product and services. Implication of such innovation within organization creates specific image
in the world and enables company to achieve all benefits such as financial, competitive and
others. In this report will discuss about innovation theories and will analyse critically. Brief study
provided overview on Dyson company and it’s historical development in this report.
MAINBODY
Theories of Innovation
There are various theories of innovation such as blue ocean and diffusion theory that are
worldwide famous theories because it supports companies to achieve number one positioning
among others in the global market. Theories are mentioned below:
Diffusion of innovation theory
It is an innovation theory that is worldwide famous but most common theory among other
innovation theories. Such theory directs the way of communication process discloses an idea or
imaginary fact on the basis of wide group of individuals living within society. This theory is
generally divided into five broad range of categories whereas organization can practice this
innovation theory on it’s business to develop number of strategies to influence people to promote
innovation. Categories are discussed below:
Innovators: This category includes such people who always wants to introduce something new
which improves life of people. They do not concentrate on market competitive because they are
highly interested to adapt all emerging changes and introduce new products and services to fulfil
needs and demands of customers. Such people are known as first person who takes initiatives of

innovation in the community without concerning about financial loss. Such first person
differentiates themselves from other through their innovative initiatives.
Early Adopters: It is second category of diffusion innovation theory wherein includes such
people who are proactive type and posses’ advanced knowledge about emerging trends or
innovation in the future that supports to implement all earlier changes without any delay (Alam
and Islam, 2017). Such people do not need to deep research market for understanding needs of
people because they have prior knowledge about such innovation so they lead such change to
gain competitive advantage.
Early Majority: This category introduces such people who implements specified innovation or
technology within business to listen success stories of the people with the emerging innovation.
These people do not include into leader’s category the reason behind is that they follow early
adaptors who have achieved success on their innovation in respect of product and services.
Late Majority: In this category contains such people who tracks early majority to critically
analysing their success and selling revenue prior after adoption of innovation. In the same period,
they also analyse intensity of innovation such as this new innovation have met customers’ needs
and expectation successfully a not. Then this category people are ready to implement innovation
in their businesses.
Laggard: Such category’s people implement change or innovation within organization when they
are highly pressurised by other companies and customers to implement such innovation. This
category people are highly bund with their custom and tradition because they faces hardships to
promote their customers to but such innovative products.
Process of diffusion innovation theory
This theory supports people to develop innovative ideas and transform them in the form
of product and service to meet desires of customers. Then company increase awareness in people
to disclose information about innovative products and services so that they become excited and
ready to try new innovative service or products (Gündüz, 2018). When service or product
become famous and highly demanding in the market then people initiates to implement such
innovative product or services after examining it’s benefits and drawbacks. At the same time, it

promotes such people who stick with their customer and tradition due to their fear of risk. Thus,
this theory helps people to adapt all emerging changes successful within company.
Benefits and limitation of innovation theory
Advantage: This theory encourages majority of people to adapt change by evaluating it’s impacts
and benefits within business. This theory supports people to categorize themselves on the basis
of innovation adaption. Thus, individuals get chance to differentiate their business from others
through this theory.
Drawbacks: This theory specially focuses on adaption of change or innovation rather than
prevents negative thought of people who are strictly bound with their custom and needs.
Blue Ocean Strategy
It is most popular innovation theory that is practiced by various companies to differentiate their
business among others. the main goal of the theory is to offer such product and services which
are beyond to customer’s expectation. Another goal of the theory is to meet individuals needs by
offering innovative products and services which posses’ superior features and qualities which
compel customers to pay extra (Aithal, 2016). With this strategy company launch such new
product that does not have competition in the business market and promotes lifestyle of
customers in their society. There are various multinational companies targets that audience who
are financially strong and have strong spending behaviour to achieve high quality products. So
such organizations practices this blue ocean strategy to differentiate it’s brand image in the
global market.
Principles of Blue Ocean Strategy
This theory comprises four type principles that supports company to stimulate growth and
success of business in it’s market. These principles are mentioned below:
Reconstruct market boundaries
It is important principle of blue ocean theory that helps organizations to generate such
new idea or strategy which is beyond of expectation for common people and posses’ high

standard from the competition. If any organization follows this principle effectively then
automatically it can develop such innovative ideas.
Focus on big picture
According to this principle company always thinks bigger that must be beyond the
expectation of customers and competitors and takes long time to be available in the market. To
think bigger needs to analyse market critically by company then it can innovate such ideas.
Beyond existing demand
As per the concept of principle company must concentrate such customers who have
string disposable income does not prefer to buy available products in the market because such
products posses’ some issues (Kampa, Cziulik and Amodio, 2017). In that situation, company
can generate such innovative idea or products which influence them to buy products and resolves
their issues while trying product or service.
Getting strategy sequence right
According to this principle organization must concentrate various risks that it can face
while leading change in it’s existing products or new products through partners, retailers and
customers. When company aware about risk then it automatically finds ways to decline all risks.
With this principle organization can get more success on it’s business as compared others.
Process of Blue Ocean strategy
There are five stages to implement this theory successfully within business. Stages are
discussed as follows:
Selection of target market:
It is primary stage that indicates organization prior targets it’s market or audience
because when it have prior knowledge about their needs and expectation then company can think
bigger to fulfil expectation of them precisely. With this stage company can build customer base
that is essential for sustain in the market.
Clarity about current state of company

It is second stage of the blue ocean strategy that indicates company must analyse it’s
brand positioning, sales revenue, competitive positioning and profitability in it’s existing market
(Franceschinis and et.al., 2017). With these factors can access it’s actual position in the market
then company automatically think to lead advancements in it’s products and services which
upgrade brand position in it’s market and others one as well.
Identity strength of business
According to this stage company must aware about it’s internal and external environment
which supports to take innovative change successfully within business. When company aware
it’s weakness then it can take innovative action to modify their weaknesses into strengths.
Find way to adapt blue ocean strategy
This stage supports company to generate new ideas that are beyond to other expectations.
But it posses’ more values with advanced benefits then company easily enable to give value-
added services or products to the customer. This process can be completed by diversifying
products and services with superior quality and features.
Make Move
It is last stage of innovation theory whereas company takes initiatives to grow it’s
business by introducing innovative products and services to improve customers’ lifestyle. thus,
company develops dynamic capabilities in it’s business (Tariq, Pangil and Shahzad, 2017).
Benefits and limitations
Advantage
The main advantage of the blue ocean strategy is that it brings high profitable output in returns.it
also supports in improving sale and profit margin of business on it’s innovative products.
Disadvantage
It is quite lengthy process and requires high funds to implement this theory successfully in
business.

Innovation theory in a historical development context
Company Background
Dyson Company was established in the year 1991 by the founder James Dyson.
Headquarter of the company is established in Wiltshire, England. Company deals in different
products such as vacuum cleaners, hand dryers, desk fans, air purifiers, hair dryers and LED
lamps. Company has always focused to innovate in its products to achieve the best level of
customer’s experience (Divisekera and Nguyen, 2018). Company is engaged in designing and
manufacturing different house hold products. The aim of the company is to upgrade the standard
of living of people. Company has a global base of business operations and currently the
organisation is catering employment to more than 12000 employees across the globe. Company
has always give priorities to innovation and development. In the year 2019 the company has
moved his headquarter to Singapore for manufacturing electrical vehicles. Asia trade is their
main focus in the initial years.
Business canvas model:
Key Partners
 Technology
providers,
the
personals
who are
involved in
providing
latest
technology
to
company.
 Suppliers of
company
involve in
Key Activities
 To conduct
innovation
and product
development
over a
regular basis.
 Conducting
market
analysis to
take the
competitive
advantages in
the market
(de
Value
Proposition
 Company has
an aim to
serve the best
house hold
products and
equipments at
the best
prices.
 Approximate
ly 12000
employees of
company who
are skilled
Customer
Relationships
 Management of
Dyson Company
gives preferences to
customer
relationship in
company.
 Company has also
established customer
grievance centre to
deal with all issues
customers of
company face in
using company’s
Customer
Segments
 People
from
middle
class to
upper
class are a
part of
target
customer
segment
for the
Dyson
Company.

supplying
finished
products of
company.
 Investors
who invets
in different
programs of
company.
 Employees
of Dyson
Company
across the
globe.
 Shareholder
s of
company
who has
invested in
money.
 Martial
suppliers
who supply
the basic
raw
material
and other
equipments
needed to
manufactur
e the final
Vasconcelos
Gomes and
et.al., 2018).
 Customer
analysis
support in
identifying
the various
needs of
customers.
 Channelizing
market
expansion on
a regular
basis.
and trained
allow
company to
achieve the
best level of
employment
experience in
company.
 Attractive
brand image
of company
allows the
organisation
to enhance the
growth
opportunities
in target
market.
 Organisation
serves the
best
household
products at
the best
affordable
prices that
create an
extra interest
of all the
customers in
market.
products.
 Best quality products
of company add
value ion customer
relationship.
 All kinds
of social
backgroun
d of
customers
base area
part of
target
customer
segment of
company.
Key Resources
 Skilled
employee’s
base all
across the
globe
approximatel
y 12000 in
numbers are
a big
resource for
the company.
 Financial
resources of
company
also play a
Channels
 Suppliers and
distributors of
company.
 Franchise owners are
a direct channels that
allow Dyson
Company to meet up
all different
requirements of
company’s customer
base
(Vanhaverbeke,2017
).
 Online e-commerce
trade is also a huge

product.
 Franchise
owner’s at
all different
business
locations of
company.
 Designers
of company
who are
engaged in
product
designing.
 Data
providers
who
provide
necessary
information
to
company.
 Researchers
who are
involved in
conducting
research for
the
company.
 Leaders in
company.
crucial role
for the
company.
 Experienced
staff of
professionals
provide
proper
guidance to
company.
 Progressive
leadership
approach of
company’s
management
and
leadership.
 Strong
supply chain
and delivery
network of
company
(Mazzucato,
2018).
channel of the
company that allow
the Dyson Company
to meet up different
requirements of
customers in market.
Cost Structure Revenue Streams

 Company has a policy to serve the quality
household products and equipments at the
best price possible.
 Low cost policy company has adopted for
all its products.
 Discount strategy is also a part of cost
structure of company.
 Company generate all its revenue from
selling different house hold products of
company.
 E-commerce sale is another key revenue
sources company has been engaged.
Dyson Company is already associated with the policy of continuous product development
activity. Company can give priorities to channelize digital marketing and e-commerce sale with
the support of various digital mediums. Digital promotions and e-commerce trade would allow
company to enhance the sales potential of company as it allows company to sale its products
without any physical store available in market. This also allow company to provide convenience
to customers of company in buying different household products based on the needs and
requirements of target customers in market (Godin and Vinck, 2017). Digital promotion model
would allow company to promote its products at different digital mediums like Amazon Prime
and other gaming applications and applications like tinder and other applications would be used
in this strategic model. E-commerce is the new way of trade in the business environment. These
strategic choices would provide a specific sales hike to Dyson Company. This will also support
the growth potential of company in market. This also allow the Dyson Company to achieve the
competitive advantages in the market by selling the best quality house hold products at the best
prices possible.
Innovation theory in the future development
There is blue ocean theory of innovation can play great role for the Dyson in the future as
well, because this theory of innovation give opportunity to innovate different new products and
services in very effective manner. There are top-level management of this company has highly
required to continoue4sly use this innovation theory for achieving very excellent results in the
future. If company will avoid this theory to use in its business environment, then it can’t achieve
appropriate outcomes within the future. Top-level management of Dyson need to understand
very basic thing that, competition within each industry or sector is continuously increasing, so

that this factor will definitely negatively affect to this company, if this company no use blue
ocean theory of innovation (Larsson and Larsson, 2017). According to different business experts,
blue ocean theory of innovation give opportunity to every business for innovating things without
caring about different negativities. This theory basically encourages managers of different
businesses for innovating that type of products which is efficient to provide very excellent
results. By adopting and innovating theory of innovation within the own business environment,
Dyson will be able develop an exclusive range of products and services as well, and this factor
will completely positively affect to profit margins of Dyson.
Of course, currently top-level management is aiming to gain more than 10% market share
within the UK’s technology market segment, so that company should be involved blue ocean
theory of innovation within its workplace to gain its aim in decided time period. On the other
side, this theory of innovation will give opportunity to this company for being up to date with
new technologies. In the comparison of other business, Dyson has to specially focused on getting
fully aware about the new technology, because it provides mostly those products and services
which are completely based on the new technology. There is blue ocean theory of innovation is
very helpful in the context of reducing the production value cost and increase the value of
customers’ satisfaction. Many of businesses within then marketing is using this theory of
innovation for controlling quality of their products and services, because by using this theory
anyone will be able to identify or develop such frameworks and approaches which can contribute
in the quality control.
According to these mentioned factors, upper management at Dyson also has required to
take decisions towards developing quality of its products and services by using the blue ocean
theory of innovation. There are company can use some other theories of innovation also with
blue ocean theory according to its conformality and suitability (Ratten and Usmanij, 2020).
However, blue ocean theory of innovation will positively affect to innovation aspect of Dyson,
and currently innovation is everything for any business and company within this dynamic world.
For the future development, Dyson’s upper management will be required to ensure that
everything is going well or not within the existing business environment, and also will required
to remove those all elements from its workplace which can negatively impact its innovation
aspect. At the end, Dyson will be able to gain excellent profit margins in the future as well.

CONCLUSION
This report has projected about the innovation in detailed manner. Innovation allows
company to modify the products of company in such a way that it can meet up all different needs
and requirements of customers in the best way possible. Company has adopted the blue ocean
strategy or a model as a part of innovation. This theory of innovation restricts the organisation
from setting up limits for the innovation. Business canvas model projected different aspects of
the operations like resources available in market, cost strategy and various other approaches of
company that can be projected as the approaches follow by company to conduct the business
operations. This report has also projected that company can apply the online and digital
marketing strategies for promoting its products. Company can also give priority to e-commerce
trade for selling all its products in market. Future development of company can also be
associated with continuous product development strategy.

REFERENCES
Books & Journals
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production. International Journal of Manufacturing Technology and Management
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