Managing Innovation in Bentley: A Case Study

This report explores the innovation strategies and capabilities of Bentley, a leading luxury car manufacturer. It discusses the company's history, existing innovation performance, and capabilities. It also analyzes the industry and identifies opportunities and threats. The report provides insights into the challenges faced by Bentley in the competitive automobile market.

Managing innovation

Executive Summary
The present report has presented number of information regarding the innovation and
the perspective of individual within the innovation. This report also includes the
identification of different innovation tools and technique which is used by Bentley. Famous
manufacturer, named as Bentley which is one of the leading luxury car developers has also
kept its focus on serving their clients with the best innovative German engine based cars
considering luxury and so on. Since, company has already been working in automotive
manufacturing industry; company has already adopted an effective R&D function for pulling
out better results in relations to its innovative luxury based cars. Its latest innovation brought
in one of the fast cars in all over the world i.e. GT 100, which runs on electricity. Also, based
on the arrangement they focus on three items initially maintaining a strategic distance from
petroleum and diesel vehicles second expanding solace level and innovation in vehicle
assembling and third bringing electronic vehicles. Including this, it is also said that
assembling business of vehicles or it tends to be set car industry in 2016, is a developing
industry where there is increment of 5.6% in deals in view of expanded interest in three
significant country which are China and Europe, where there are absolute 52 markets for
vehicles that 84.24 million units sold.

Table of Contents
Executive Summary...............................................................................................................................2
Table of Contents..................................................................................................................................3
INTRODUCTION.................................................................................................................................4
MAIN BODY........................................................................................................................................4
The Organisation and its Innovation History.....................................................................................4
The Organisations existing Innovation Performance and Capabilities...............................................7
The Industry......................................................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11
Books and journals..........................................................................................................................11

INTRODUCTION
Innovation can be defined as up gradation in technological and other aspects of
products in global world. Innovation is continuous process in automobile manufacturing
industry where Bentley works. It is a car manufacturing company which is famous for its
modern look cars, racing cards and designer cars. This company is also famous for its
handicraft cars as they design their cars with their hand where are minimum use of
machineries. The famous models of company are Mulsanne, Bentayga and new continental
GT. In this report there is in study of innovation in In Bentley as well as automobile industry.
The capability of organisations and chances for performance will also be analysed in this
report. In the end of report there is study about the automobile industry (Miron-Spektor and
Paletz, 2017).
MAIN BODY
The Organisation and its Innovation History
Bentley is in British multinational company which manufacture cars. It is famous for
manufacturing luxury cars and SUVs and a part of Volkswagen group since 1998 company
headquartered in England. It is founded by W.O. Bentley in 1919. Bentley is famous for its
innovation in racing cars engine. Some famous innovations by Bentley turbo engine Bentley
speed 6 continental GT and flying spurs (Schiuma and Carlucci, 2018). These all are the
innovative products which are launched by Bentley companies also famous for its high speed
cars which are based on renewable energy sources. Company also have good brand value in
manufacturing products according to needs of customer where it makes amendments in cars
accordingly. It has also contracts with great business units where it provides its services to
them.
Pest analysis: it is data analysis which is used by the organisation for identification of
external factors which can impact on the performance and innovation capability of an
organisation like Bentley. For analysing the all innovative and new technology within the
external environment Bentley can use the pest analysis which is described below:
Political factor: Political factors are those which impact the business of firm because
of intervention of government where organisation is working. Bentley is providing services
globally where the major problem that it faces is promotion of public transport by
governments because of increasing pollution and rising problem of climate change. There is

one more political factors which affect positively on Bentley which is political stability in
global market because of strong government hold also provide use it innovative ideas in
working. political factors of direct impact of the innovation capabilities of the organisation
because changing political environment can cause changes in the policies regarding the
innovation within the firm which will also has different opportunity for the organisation.
Economic factor: Economic factors include exchange rate and many more things
which are going in economy of nation where organisation is working. The external factor of
high growth and developing market create number of opportunities for battery to grow and
explain in this area it can use it innovation method for growing in these areas by making
dealership agreement in countries like India and others. This will impact positively on
organisation by increasing its profitability and productivity (Erdogan, Rondi and De Massis,
2019). Development within the economy will also impact on the innovation in Bentley as
company have to cope up the development which is going within the industry.
Social factor: Social factors have great influence on performance of Bentley and its
innovation increasing demand of electric vehicles and self-driving vehicles will boost the
profitability of Bentley this is because Bentley is using and innovative high speed cards in
their production process which fulfil the demand of society and increase profitability. there
are various social factors which have direct impact on the innovation within the organisation
as brand for high speed is also factor which impact on innovation capabilities of Bentley
because form is dealing on in high speed motor cars which is the factor off social trend.
Technological factor: there are number of technological factors which are impacting
positively on Bentley increasing this self-driving concept this technology Bentley in
expanding its market this is because mentally searching on this technology from more than 20
years and have patent of it. Technology always has direct impact on the innovation within the
Bentley because changes in technological environment can cause in changing strategies of
Bentley regarding innovation.
From the above pest analysis it can be identified that Bentley have number of impact
from the external environment which can cause changes in the policies regarding innovation
within the organisation as well as have the firm in forming different policies for innovation.
Porter’s five forces model

Power of customers: Bentley has huge customer base which help it in retaining
powers in firm hand this is because firm supplying products which are based on innovation.
This is the reason that firm has full control over its customer (Kocak, Carsrud and Oflazoglu,
2017). It can be analysed from the past doings of the company that it provided number of
opportunity to its customer where they can get the new and innovative products and facilities
within the cards of Bentley. This helps badly in gaining the power of customer.
Power of suppliers: Suppler of Bentley is limited which act as disadvantage for firm.
This is because market of car manufacturer is lamented where suppliers require huge capital
investment. This will also impacted on the inauguration of the company this is because
company have to identify different type of factors which are related to their suppliers. It also
pays a large number of amounts to its suppliers which can be invested on innovative methods.
Threat of substitutes: This is a competitive advantage to Bentley as there are fewer
substitutes of company’s products this is because it is using innovative ideas for
manufacturing its car which act as fewer substitutes of products. This can be seen as a past
performance of the Bentley where it when is different type of competitors because of its
innovative and designer products within the market where it can also begin from the
customers by the help of innovation.
Threat of new entrant: Threat for new entrants is low in manufacturing company this
is because there is huge investment on manufacturing plant which is impossible for any new
entrant. Bentley is using the innovative products where it provide the open door services as
well as different type of designer cards to customer according to their customising needs
which directly impact on the threat of new entrants within the market and reduce it because of
fuse investment on customise cars and innovative products.
Rivalry of the firm: There is no close rivalry to Bentley but there are some
manufacturers which have to be checked because of their investment and high technology
manufacturing plants which can act as future rivalry for firm (Bahemia, Squire and Cousins,
2017).
It can be concluded from the porter five forces model analysis of Bentley that
companies operating highly competitive market but there are number of factors which are
with the company like power of customers, threat of substitute and threat of new entrants.

This all will give the competitive advantage to the Bentley where it can perform more freely
because of its innovative ideas and technology which is used in its vehicles.
The Organisations existing Innovation Performance and Capabilities
Bentley is British multinational car manufacturing company which is famous for its
classic designs and innovative cars. Firm is also known for its comfort and stylish look which
provide in a car for satisfaction of customers. It exists from 100 years in market and now
works as a subsidiary of Volkswagen which ones maximum share in it. Bentley has separate
research and development department which help making innovative products. Recent
innovation information about their new car GT 100, which is a fast and electricity based card
which run on electricity. It is fastest car which is never ever made and based on electricity.
This electronic car has special features like air open doors, best interior look and stylish
outlook. Make its car innovative and unique which attract customer eyes. This car also
feature which enable customers automatic driving modes where it can use for automatic
driving where there is no need of driver in car(Dodgson, 2018). This have also open window
roof which is controlled with smart function and enable customer great satisfaction and
feelings. This will help which firm is also working in on hybrid electronic engine which is
an innovative idea where electricity can be generated by rolling of wheels as well as solar
panel installed on top of car in a stylish way. There are number of prime products which are
famous for innovation in firm some of these are Bentley Speed Six, Bentley T-Series, Bentley
8 Litre, Bentley Mark VI, The Bentley Mulsanne, Bentley Brooklands, Bentley Arnage,
Bentley Azure. This company have some strength and weaknesses which are mentioned
below:
Strength Weaknesses
 Popularity: Bentley popular this is
because it has a unique combination
of luxury as well as sports with
natural car look. And have a German
based engines which car better
performance that's why they are
popular in market(Cui and Wu, 2016)
 Limited reach: Bentley have limited
presence in number of markets where
it losing its shares in. Emerging
countries live Asian market where
there are low income group people it
is impossible for Bentley to establish
its product.

 Brand uniqueness: Bentley is a
separate brand which does not
promote itself more this is because of
their innovation methods which day
used in production of their cars. Is
methods attract customer
automatically where company e have
does not need to enquire cost on
advertisements and other attractions.
 Car designs: the major strength of
Bentley its card designs this is
because research and development in
car production where it remains its
design time to time to impress the
customers and maximize the comfort
level with use of technological
innovations.
 Long waiting: This is also impacting
as company. Is there is limited
production in company which result
in waiting of customers and long with
weight will divert customer to
competitors like jaguar and land rover
(Eastwood, Klerkx, Ayre and Rue,
2019).
Opportunities Threats
 Mergers and acquisitions: this is a
great opportunity for Bentley to use
this function and expand its market in
global world, where it can get in
touch with new technology and get
information about market trends. This
will also help firm in strengthening its
distribution channel and identifying
business opportunities ain Asian
nations as well as places it want to
explore.
 Promotion: the world is continually
changing and now it become
mandatory for Bentley to promote its
products in market where it can get
access to number of function which
 Changing government norms: there
are number of changes in government
as they are becoming more concern
about environment protection and
reduction in pollution impact on
Bentley policies S8 have to change its
product type for saving environment.
 Competition: this also acting as threat
to firm this is because it is dealing in
automobile industry where is number
of competitor having in more
investment than firm. This also acting
as problem on firm’s products
because it has to check prices of other
and then decide its products prices in

help firm. market.
After identification of SWOT analysis within the Bentley it can be identified that
there are number of strength like popularity brand uniqueness will help company in managing
the innovation within its functioning where it can use the different innovative ideas like
German based engine and unique quality of brand. There are some weaknesses also like
limited drinks and long waiting which can be solved with the help of using new technology
and promoting the research and development within the organisation. Threats and opportunity
can also be metered with the help of innovation by bringing the changes within the
functioning and culture of the organisation.
The Industry
Bentley dealing in automobile industry where it manufactures cars according to the
needs of customers, all the cars are handmade where there is minimum use of machine. These
are generally fusion of sports car as well as classic models of cars in a modern look. The
manufacturing industry of cars or it can be set automobile industry, is a growing industry
where there is increase of 5.6% in sales because of increased demand in three major nation
which are China, India and Europe, where there are total 52 markets for cars that 84.24
million units sold. The demand in US remains stable and just double in number in China.
There is more demand of SUV as compared to LCV in whole markets. This is the year where
Japanese companies like to Toyota and many more faces downfall of 1.6% in comparison last
year and European companies plus growth of 7% with more than 7.1 million units sold. This
is all because European countries adopt new structure, they are using innovation in their
products where three innovation policy is adopted by European countries in 2016 in which
Bentley one of those companies which are using this policies. According to the policy they
concentrate on three products first avoiding petrol and diesel cars second increasing comfort
level and technology in car manufacturing and third bringing electronic cars. Bentley ia
frontrunner in adopting this policies as UK government initiated the program of banning
diesel and petrol car prior to 2040.this become inspiration for it and automobile industry that
stop production of petrol and diesel cars because they cause pollution to environment as well
as become reason for climate change (Tidd and Bessant, 2018).
Bentley introduced Ritz GT 10 electro which is based on fully electronic engine. This
car have speciality of reaching 300 kilometre per hour speed within 20 seconds and 100 km
per hour speed in 8 seconds which is also a world record for electronic car. This car is
completely based on electricity where its engine can also generate electricity for every

hundred kilometre generate electricity for next 2 kilometres. Company also focuses on
increasing comfort level where it decrease the size of engine by using four stroke engine with
automatic suspension which help in increasing space driver as well as other members. In
2016 number of government started focusing on safety of drivers as well as customers, who
are sitting in cars for these governments invented laws which are related to safety and
security measures in cars. All automobile industry manufacturers started using these
standards for measuring safety Indian cars this help in reducing the number of deaths because
of accidents as well as it also helps in attracting customers. Bentley also focuses on the
standards and maintains strict guideline for manufacturing cards according to these standards
which also its sales which shows the increment of 20% as compared to 2015.
CONCLUSION
Above mentioned report can help in computing that innovation is an important part of
manufacturing industry. This is because there is regular technological updating and change in
policies which are related to automobile industries. Innovation also helps in attracting
customers by identifying the strength and opportunities of firm and making good business
policies by analysing its potential factors which can have their impact on firm. Internal and
external factors have great impact on production and innovations which have to be analysed
bite manage. It is also identified that there are number of changes within the industry which
help the Bentley in growing its market and increasing the popularity because of using
innovative techniques.so Indian it can be concluded that innovation is important for the
organisation and it must follow the different factors of innovation for getting success and
achievement its objective within the target market.

REFERENCES
Books and journals
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Eastwood, C., Klerkx, L., Ayre, M. and Rue, B.D., 2019. Managing socio-ethical challenges
in the development of smart farming: from a fragmented to a comprehensive
approach for responsible research and innovation. Journal of Agricultural and
Environmental Ethics, 32(5-6), pp.741-768.
Cui, A.S. and Wu, F., 2016. Utilizing customer knowledge in innovation: antecedents and
impact of customer involvement on new product performance. Journal of the
academy of marketing science, 44(4), pp.516-538.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation (Vol. 11). Routledge.
Bahemia, H., Squire, B. and Cousins, P., 2017. A multi-dimensional approach for managing
open innovation in NPD. International Journal of Operations & Production
Management.
Kocak, A., Carsrud, A. and Oflazoglu, S., 2017. Market, entrepreneurial, and technology
orientations: impact on innovation and firm performance. Management Decision.
Erdogan, I., Rondi, E. and De Massis, A., 2019. Managing the tradition and innovation
paradox in family firms: A family imprinting perspective. Entrepreneurship Theory
and Practice, p.1042258719839712.
Schiuma, G. and Carlucci, D., 2018. Managing strategic partnerships with universities in
innovation ecosystems: A research agenda. Journal of Open Innovation:
Technology, Market, and Complexity, 4(3), p.25.
Miron-Spektor, E. and Paletz, S.B., 2017. Collective paradoxical frames: Managing tensions
in learning and innovation. Handbook of group and organizational learning.