Managing Innovation in Business

Managing Innovation in Business

EXECUTIVE SUMMARY
This report is prepared on the topic 'Managing innovation in business' with respect
Amazon in UK. In this report, a complete industry analysis is carried out and also the past,
present and future aspects of innovation in Amazon. According to the report, it was found that
Amazon is known for its innovative ideas which has lead it to success and growth. The key
strategic capabilities of amazon is analysed which includes brand equity, delivery network,
worldwide presence and market capitalization which has helped in achieving sustainable
competitive advantage. Also, the different macro factors helped it in achieving success.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
THE ORGANIZATION AND INDUSTRY OVERVIEW.............................................................4
The organization and its innovation history.................................................................................4
The organizations existing innovation performance and capabilities..........................................5
The industry in 2020....................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business innovation refers to the process of coming up with new ideas, processes,
products and services to market. The main objective of innovation is to improve the performance
of the business and achieve competitive advantage. In this report, Amazon is taken as an
organization. It is an American multinational technology company in Seattle. It focusses on e-
commerces, digital streaming, AI and cloud computing. It was established in 1994 by Jeff Bezos.
This report presents about the innovation history of Amazon and it also includes the current
capabilities of Amazon and then conducting the industrial analysis to identify the future
prospects.
THE ORGANIZATION AND INDUSTRY OVERVIEW
The organization and its innovation history
The e-commerce market in UK is the third largest market in the world. UK ranks high on
various in indices which includes logistics and ease of doing business. The total projected
revenue was 200 billion euros in 2019 and it contributed 7.94% of GDP.
Amazon is one of the largest e-commerce giant in UK based in Seattle and it was founded
by Jeff Bezos in 1994. Since 2010, it has started investing UK and over 18 billion have been
invested to provide value and convenience to UK consumers (Lacy, Long and Spindler, 2020).
Along with that it has empowered millions of small businesses and content creators. By the end
of 2019, it has employed over 29500 people having wide range of skills and expertise. Amazon
was started in a garage and its first service was selling an online book store. In the first two
months only, it sold to all 50 states and covered over 45 countries.
The four dimensions of innovation space are:
Product innovation: Amazon has changed the way people live. It has provided variety of
services to the customers which are innovative in nature. It includes groceries, electronics,
books, beauty and health care products, clothing, fast shipping with prime membership. It has
also launched Prime now to make the shipping more fast.
Process innovation: Amazon has connected with hundreds of thousand of small businesses to
sell their products on the Amazon's website (Akgun and et.al, 2017). It has also expanded by
providing a wide range of services such as cloud computing, entertainment which includes
Amazon Prime.