Managing Innovation in Business

This report discusses the importance of managing innovation in business, with a focus on Land Rover. It explores the innovation history of the company and its existing performance and capabilities. The report also highlights the industry trends in 2016. Innovation plays a crucial role in the automobile industry, helping companies attract customers and increase productivity and profitability.

Managing innovation in
business

EXECUTIVE SUMMARY
This is the report based on managing innovation in business for this land rover. This firm
mainly deals in premium luxury SUV and sports cars which are safer and comfortable for its
customers. Range rover have a huge investment in their research and development
department which help them in getting innovation in their products the first innovation which
it bring is the material of their what is the first company who started using aluminium as
material for producing for manufacturing cars. In this report the proposal is made on range
rover new innovation in technology. The innovations which are brought by range rover in
market are different from other company which will help firm in getting access to different
market and use this for maintain good position in market and attracting more and more
customer towards firm. So, innovation is helpful in getting mare productivity and getting
access to number of benefits for increasing profitability and productivity.

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
The Organisation and its Innovation History (500 words).....................................................3
The Organisations existing Innovation Performance and Capabilities..................................5
The Industry in 2016..............................................................................................................7
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................9
Books and journals.................................................................................................................9

INTRODUCTION
There is continuous advancement in technology and innovation in automobile
industry and automobile organisation should adopt and works on it. Land rover is one of
those organisations which are famous for its technological innovation in SUV category. First
innovation of this firm is to use aluminium for making there is a base cars. This is because
aluminium is lighter, stronger and stiffer then steel. This report will conducted on the
innovation of land rover in their functioning (Yin, Ansari and Akhtar, 2017). It also report
includes the study of organisation and its innovation history and identify the capabilities and
performance of innovation in land rover. In last, the industry where land rover will be
working will also identified in context year 2016.
MAIN BODY
The Organisation and its Innovation History
Land Rover British brand which offer premium and luxury sports utility vehicles or it
can say super safe cars, Land rover original used by Rover Company where they supply four
wheel drivers and off-road models which are launched in 1948. This Company believes on
innovative products where the main motive of company is safety of customer with best look,
design and comfort. Company also famous for its SUV models which are superior in design
and specially made for off road driving. This Company also supply cars to different defence
organisations for saving the life of presidents and VIP persons (Morabito, 2017).
Political factor: These are those factors which are related to firm functions and working
conditions which are affected because polices of government where firm is working. Political
conditions are stable in UK for working of Land rover. In 1980, when land rover is
introducing 4 type engine and innovative plans for is cars , than government of UK imposed
ban on its plans because firm is violating safety regulation. This impacted positively on firm
as the started focusing on safety feathers and now it became more demanded company
because of its safe and hard cars.
Economic factor: It includes GDP rate, growth rate and other economic aspects which are
running around business. Land rover is an international organisation which performs at global
level where there are number of factors which have their impact on firm. In 1989,when there
is huge recession, land rover is also facing low profits but for bringing out of this it started

manufacturing cheap cars which are have full feathers for which rover is famous. This help
firm in survival till the starting of economic growth.
Social factor: Social factors are those which are related to trending social thinking of
individuals in the society which is surrounded around business. Land rover positive impact of
social factors, this can be seen as in 2006 land rover bring a new and innovative SUV concept
automobile industry where it become a trend to use SUV cars trend is supported by land rover
which also increase its profits by 50%. Because of this every car manufacturer started
manufacturing SUV cars in that year (Macneill and Jeannerat, 2016).
Technological factor: These are those which are related to technological Innovation and
improvement in organisation. Range rover have good control on these factors, this is because
there is huge investment by land rover its research and innovation department company
always invest on new and innovative products which help it in improving productivity and
profitability as a result in 2010 land rover was highest seller in UK.
Porter’s five forces model
Power of customers - Power of customers for land rover is low because company have
innovative product which customer can buy at any rate is it provide safety and comfort to
them, this help land rover in making a competitive advantage of moderated level.
Power of suppliers- This is not a competitive advantage for land rover because power of
supplier are more as there are less supplier of material which it is used in manufacturing of
120 and other cars aluminium is low in quantity and high in prices.
Threat of substitutes- There are small amount of substitute for land rover products because
there is no other company in car manufacturing industry which use aluminium as product for
manufacturing cars. This is an innovative idea which relay with land rover so it can also act
as a competitive advantage for firm that there is no close substitute of its product (Kerry and
Danson, 2016).
Threat of new entrant- Threat of new entry is also low automobile industry where land rover
works this is because there is used capital investment and information technology
requirement for bringing for establishing a manufacturing plant of cars it is also a competitive
advantage for there is no threat of new entrants.

Rivalry of the firm- There are a number of competitive rivalry in in this market because
everyone have some innovative products. Racing car manufactures companies like Ferrari
and many more can be act as a rivalry for firm where it have to deal with all its
consciousness.
The Organisations existing Innovation Performance and Capabilities
Land rover reason British automobile company which is known for its products like
SUVs and luxury cars this company is currently operating in global world where countries
like Slovakia India China and UK are the main business operations of company. This
company is known for manufacturing four wheelers which are inbuilt of numbers of safety
features and good comfort level for its customers. Some featured products of company are
land rover Discovery sport, Discovery miles Isaac luxury excuse, the defender and range
rover sport. Company always believes in innovation and good product which help customer
in satisfying their needs for this land rover has created a revolutionary way for building its
vehicle with aluminium it is stronger and lighter than steel which is used in maximum cars.
Land rover builds chassis with pure aluminium which help in reducing the weight of car and
making it stronger and faster. It use a new range of 4 cylinder KAL petrol engines or diesel
engines as required by customer which will deliver 15% improvement in fuel economy and
outstanding 240 PS and 500 NM of torque land rover also use advanced technology which
will offer a great benefit of safety convenience and comfort to its customer because it use the
cutting edge technology which enable vehicle to see even more while driving. It also set it
some innovation labs which help in increasing the performance of vehicle and making it more
connecting to human life company things that human life is more important than anything
else. For identifying the capacity of the business the method we used is SWOT analysis
which help land rover in identifying its capacities and using them in effective manner (Davis,
2017).
Strength Weaknesses
 Strong brand image of land rover
which help it in attracting more
customers. This is because it has
strong ties with jaguar and Tata
motors which are leading companies
in car manufacturing. In 2017, it has
been included in interbrand’s elite
 Due to emerging market concept
negative sales growth after all the
premium segments automotive
companies are growing with good
potential of emerging market but land
rover faces negative impact of this
and its growth rate is decreased by

club of world's hundred valuable
brands which also supported
company in making strong brand
image.
 Smart working is also strength of land
rover as in order to streamline various
processes it regularly includes the
employees specially the youth for
creating efficiency and reducing the
waste which also ensure sustainable
and profitable business. For
manufacturing engine centre
employee implemented effective
engine parts fitting process which
help land rover in increasing its
efficiency by 65% in year 2016.
average 20% which is higher than any
other company in Asia-pacific market.
 the revenues of land rover cars
shrinking day by day this is because
45% of retail sales of this company
came from UK and European Nations
where the markets are developed at
the peak stage so it will impact on
revenue of firm negatively as there is
no scope for products of company.
Opportunities Threats
 Lifestyle of customers and change
can help in reward for identifying
opportunities. this is because three
powerful forces are ruling the car
industry which are shifting in
consumer demand, expended
regulatory requirements and safety &
fuel economy, these all can be used as
an opportunity by land rover by
implementing them in their
functioning.
 Another opportunity for land rover is
that it can used expansion for growth
and development expansion in is in
terms of globalisation where it can
expand its market to those Nations
where there is a strong economic
 higher level of competition is a threat
for land rover as presence of large
number of players in automobile
industry where there is luxurious
products of different manufacturer
will decrease the market share of land
rover every other companies eating
other share and leaving little scope for
new player which is threat for this
company (Ciulli and Kolk, 2019).
 Geographical risk is also acting as a
threat for land rover this is because
there are number of factors like
ecosystem, political instability, fuel
shortage, declining resources, wars,
terrorism, natural disasters, strike of
labour and number of uncertainty

conditions and need for safety in car
market.
which can act on firm economically
and socially and act on profitability
and productivity.
These all are the factors which enable form in identifying the opportunities and threats
which can associate with its strength and weaknesses for combining the market and using it
according to the needs of firm for achievement of goals and objective within a limited time
frame. This also helps in innovation and development of new ideas by identifying the
strengths and weaknesses.
The Industry in 2016
Land rover dealing in automobile manufacturing industry which is changing
continuously from last several years where there are number of innovation . It is famous for
its world class designs and innovation in manufacturing of where it satisfy its need of its
customer by providing them safe comfort and stylish SUV with classic as well as modern
technology combination. There of ups and downs for automobile industry is 2016.number of
entrance new entrance in this year with more than 108 products launch with an innovative
idea and different features and its functioning. Auto expo in 2016 attract more than 6 lakh
visitors in UK there are three main things around more focus which are ban on diesel /petrol
cars introduction of electric cars and focus on comfort level and safety of user. These all are
the measures which help automobile industry in growth where 16% growth was observed in
financial year 2016-17 (Carandente, 2016).
In year 2016, the first focus was made on ban of diesel and petrol car this is because
of initiative started UK government that initiate complete ban on petrol and diesel vehicles
prior to 2040. Initiative taken because petrol and diesel cars are running on non-renewable
energy resources and causing huge damage to environment in form of greenhouse gases,
global warming and climate change. Acting on biodiversity of nature is also being reason for
banning the use of petrol and diesel based cars. There is one more initiative taken in 2016
which is launching of electronic cars this also benefit range rover as company started its
research and development on electronic cars from very long time where it introduced high
speed electronic cars for racing and also for domestic use. It also its involvement in
commercial vehicles likes buses and railway engines which are also based on electricity.
Electricity car is paid because Electricity is a renewable source of energy which cause zero

damage to environment and also help in reducing global warming and climate change there is
no greenhouse gases effect on biodiversity of earth (Amison and Bailey, 2016).
Companies like land rover, started more focus on safety and security needs of
customers where they started manufacturing good cars which can be used in off road task as
well as for security purpose of VIP’s. This is also changed which came in industry in 2016
the main reason behind this change is terrorist attacks and major hijack events which
happened in past time and paid more focus to security of VIP is and presidents of different
countries.
CONCLUSION
It can be concluded from above mentioned report that innovation play important role
in automobile industry or any other industry as it helped the firm in growing its products that
can satisfy the needs of consumer more effectively. For Satisfaction of needs, consumer is
ready to pay the price which the firm wants for its goods and services. It is important for firm
to increase its investment on research and development programme where it can get
innovation in its products. And also helps in building a good brand image of firm which
attract more and more customers in a particular marketplace.

REFERENCES
Books and journals
Amison, P. and Bailey, D., 2016. Industrial diversity and innovation spillovers: dynamic
innovation and adoption.
Carandente, M., 2016. FE simulation of the SPR process to predict joint characteristics:
innovation report (Doctoral dissertation, University of Warwick).
Ciulli, F. and Kolk, A., 2019. Incumbents and business model innovation for the sharing
economy: Implications for sustainability. Journal of cleaner production, 214,
pp.995-1010.
Davis, M., 2017. Effective vehicle attribute delivery at Jaguar Land Rover: innovation
report (Doctoral dissertation, University of Warwick).
Kerry, C. and Danson, M., 2016. Open innovation, Triple Helix and regional innovation
systems: Exploring CATAPULT Centres in the UK. Industry and Higher
Education, 30(1), pp.67-78.
Macneill, S. and Jeannerat, H., 2016. Beyond production and standards: Toward a status
market approach to territorial innovation and knowledge policy. Regional
Studies, 50(2), pp.245-259.
Morabito, V., 2017. Business innovation through blockchain. Cham: Springer International
Publishing.
Yin, E., Ansari, S. and Akhtar, N., 2017. Radical Innovation, Paradigm Shift and
Incumbent’s Dilemma The Case of the Auto Industry. Future Studies Research
Journal: Trends and Strategies, 9(1), pp.138-148.