Managing Innovation in Business

This report explores the concept of managing innovation in business, with a specific focus on Land Rover. It discusses the company's innovation history, existing performance and capabilities, and the state of the automotive industry in 2016. The report also includes a PESTLE analysis, SWOT analysis, and Porter's Five Forces analysis.

Managing Innovation
In Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
The Organisation and its Innovation History...............................................................................3
The Organisations existing Innovation Performance and Capabilities........................................4
The Industry in 2016....................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Managing innovation can be explained as the systematic approach of generating any of the
new idea and introducing it in regular practice for the purpose of earning profit. It is necessary
for any of the organisation to understand that they must be able to bring innovative ideas within
the organisation for the purpose of accomplishing the goals. In context of the report, the chosen
organisation is Land Rover which is one of the multinational organisation where its headquarter
is in United Kingdom. Different topics will be explained within the file which related to
innovation history of the company, existing innovation performance and capabilities the
organisation to sustain within the market and finally in the report of company in year 2016 will
be focused.
MAIN BODY
The Organisation and its Innovation History
In present scenario, organisation like Land Rover is itself a global name which deals in
the sector of automobile. The company is capable of doing excellent in their sector because of
the innovative ideas and technologies which they introduce within the business. Company has
been dealing within the market since last 70 to 80 years which itself shows that they are able to
deliver the services which are required by the customers in current scenario. In order to identify
the innovative history of the company, PESTLE analysis has been done below:
PESTLE Analysis: It is a business model which allow the entity to identify about the
external factor which may affect positively as well as negatively upon business organisation.
Below, there is the detail description about the model.
Political: It is the one of main aspects of PESTLE analysis which emphasis on the
political situation of the country where organisation perform its business activity (Antikainen and
Valkokari, 2016). Talking about the first vehicle which company introduced within the market
was Jeep where they had used fabrication which has helped them to reduce overall expenses
which is very much important for them. As company has introduced its first car during post war
which had not allowed them to be stable within the market.
Economical: In present scenario, it has been found that UK is among one of those nation
where political situation has been always stable. It is always a positive sign for any of the

organisation to perform its business activity. Similarly, it was found that in year 1960 company
launched its Series named as IIA where they introduced 12 seater vehicle for the first time. It was
one of the major success for the company (The History of Land Rover, 2019).
Social: It is necessary to understand that in whenever any of the company takes its must
be based on the believes of people, trends should be there because that directly allows the
organisation to perform better. In context of Land Rover, company has been able to introduce
some of the outstanding models which keep them to be trending on constant level. It was one of
the reason that they introduced three door range rover which was liked by its customers too. It
was completely an innovative idea and approach from the side of company to give competition
to rivalry firm (Archibald and Archibald, 2016).
Technological: It is the factor which completely focuses on the introduction of
technologies which can allow any of the company to perform better. In context of Land Rover,
they were always one of the firm which believes within the innovative work and looking at this
company introduced its first vehicle which was anti-lock brake vehicle. Also, automatic air
suspension was introduced by the company which allowed them to cover huge market share.
Legal: It is necessary for any of the organisation to understand that they should be able
to follow the rules and regulation because that simply keeps away the company from various
penalties. In context of Land Rover, they have mainly focused towards intellectual property
which is allowing them to be innovative within the market. With the help of act, company have
introduced some of the additional features like Hill Descent Control and many more.
Environmental: This is among one of the factor which has been very important to attact
more number of customers. In context of Land Rover Plc, company has been focusing towards
electric vehicle market which will help them to reduce emission and even economy condition of
fuel can be improved because of it. It shows that company has been trying their best within this
particular sector as well.
The Organisations existing Innovation Performance and Capabilities
It is crucial that company like Land Rover have developed its image from the existing
market as compared to other company due to which currently people give their preferences to the
organisation. The main strength of the company is that they are able to being innovative ideas

which are liked by their customers. Company has been recently focusing towards their
capabilities and developing opportunity from the market which is one of the most important
thing in current scenario for the company like Land Rover. In order to identify the strength and
weaknesses of the company, they use SWOT analysis. Detail description of the model has been
mentioned below
SWOT Analysis
Strengths: It relates with the point in which company is good and allowing them to
develop their brand image for attaining future goals. In context of Land Rover, there are number
of positive for them:
 Maintaining Quality: It is necessary for any of the company to maintain their quality of
the product to cover large market share and even company like Land Rover is doing
exactly the same (Archibald, 2017).
 Market Share: They have been always one of those organisation who has focused
towards innovation and introduction of technologies within their vehicles. It is one of the
main reason that they are able to capture huge market share through which their goals are
also being accomplished.
Weaknesses: Although company has been performing really well within the market but still
there are some of the weaknesses where they are required to work and those weaknesses are:
 Limited Market Presence: It has been seen that company is performing well within the
market but they have faced some of the serious nature of problem at the time of entering
into new market where company must work in future period of time. If company will not
be able to do something different at the time of entering into new market, then it will not
be easy for them to survive within the market.
 Negative Sales Growth: Currently, company only manufactures luxury cars which is not
preferred by each and every market. In Asian market company is suffering because car is
expensive due to which sales is decreasing day by day (Chen, Jiao and Zhao, 2016).
Opportunities: Lower Inflation Rate: It is necessary to understand that company has been performing
will within the market but there is the option available for the company which can bring

stable market. It will simply allow the customers to get credit at a lower interest rate due
to which their sales can be increased at a significant rate. With time, people as well as customer groups have witnessed various changes in trends
and their lifestyles as per rise or pressure of various external factors. Currently, customers
want vehicles that give them utmost comfort, speed and most importantly, safety.
Moreover, they want all these features in price which is convenient to them (de
Zubielqui, Jones and Statsenko, 2016). Land Rover could create a new product or feature
which would help serve all these demands of customers.
 Technology: The current UK market adopts new technology in a very short period of
time. This types of market can be really helpful for the company like Land Rover because
they can attract more number of customers. The main thing which their management is
required do is that they spend within Research and Development through which they can
easily cover large mist share in a short time period.
Threats: High Competition: There are number of organisation which has been dealing within the
market of automotive. Whenever there are multiple number of option available within the
market, it becomes difficult for the company to earn profit (SWOT Analysis of Land
Rover, 2019).
 Brexit: The effect of Brexit can be easily seen within the market because economy has
fallen down and even import duty and other charges have increased overall expenses. It is
one of the reason that company might face problem in future period of time.
The Industry in 2016
Talking about Automotive sector, it is among one of the fastest growing business industry
because it certainly brings innovation and new technologies within the market through which
chances of earning profit increases. Even competition among the existing entities is increasing
day by day which allows the customers to take benefits. In order to understand about the
industry, Porter Five Forces has been used through which detail knowledge can be collected
Porter's Five Force Analysis

It is a business model which allows the business organisation to determine that how they
are needed to perform their business activity by analysing the number of factors which has a
direct impact upon the entity. Below, detail description has been done upon the model.
Customers' Bargaining Power: Automotive Sector has been evolving at a greater speed
which directly or indirectly allows the business organisation to perform better. It has been found
that even government has been giving number of benefit to buyer and seller both. Also, there are
number of organisation available in this particular sector (Harhoff and Lakhani, 2016). Looking
at this scenario, there are number of customers as well who can allow the company to earn profit.
It means that there is a high power available with industry as compared to customers.
Supplier's Bargaining Power: There are number of automotive industries in current
scenario which mean that there are number of suppliers in the market. Different company uses
different types of features within the vehicle which allows to attract the customer. Whenever any
of the customer tries to switch into any of the new brand then overall cost increases for them due
to which power within the industry remain moderate.
Substitutes' Threats: It means that any of the product which can be purchased in place of
existing product which an customer uses. There are number of substitutes threats for the
company such as public transport which is always a cheaper option for the organisation. It can
certainly reduce the percentage of sale. In simple words, there is high threats for the automotive
industry within the market.
Threat from New Entrants: It is necessary to understand that automotive sector is one of
the most challenging and tough business activity to be performed because there is huge
competition available within the market. It is not easy for the new investor to invest within this
particular industry. Since, there is a Brexit related issues as well due to which it is difficult for
new investor to enter within the market. It means there is less competition available within the
market.
Existing Competition: There is a huge competition within the existing market which
enforces the organisation to be innovative because simple mistake can create issues for the
organisation. This sector has been certainly allowing to generate the huge percentage of profit for
the company (Lager, 2016). In short, there is a high competition among the existing firm because
of their innovative ideas of conducting business.

CONCLUSION
From the above discussion, it can be easily concluded that any of the organisation required
innovation within their business for sustaining within the market. If company wants to identify
about the external factor which may affect the company, then they must take the help of PESTLE
analysis. This is among the model which can be beneficial for organisation as it will allow them
to identify that how they are required to enter into any of the new market which is very much
important. any of the entity should be able to bring innovative idea whether they should have
well established team who can perform each and every task.
REFERENCES
Books & Journals
Antikainen, M. and Valkokari, K., 2016. Framework for sustainable circular business model
innovation. Technology Innovation Management Review. 6(7). pp.5-12.
Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management. CRC
Press.
Archibald, R. D., 2017. Leading and Managing Innovation: What Every Executive Team Must
Know about Project, Program, and Portfolio Management. Auerbach Publications.
Chen, J., Jiao, H. and Zhao, X., 2016. A knowledge-based theory of the firm: managing
innovation in biotechnology. Chinese Management Studies. 10(1). pp.41-58.
de Zubielqui, G. C., Jones, J. and Statsenko, L., 2016. Managing innovation networks for
knowledge mobility and appropriability: A complexity perspective. Entrepreneurship
Research Journal. 6(1). pp.75-109.
Harhoff, D. and Lakhani, K. R. eds., 2016. Revolutionizing innovation: Users, communities, and
open innovation. MIT Press.
Lager, T., 2016. Managing Innovation & Technology in the Process Industries: Current practices
and future perspectives. Procedia Engineering. 138. pp.459-471.
Online
The History of Land Rover. 2019. [Online] Available Through:
https://www.ifixit.com/Wiki/The_History_of_Land_Rover_-_Small_Beginnings-
Big_Results
SWOT Analysis of Land Rover. 2019. [Online] Available Through:
https://www.marketing91.com/swot-analysis-land-rover/