Managing Innovation in Hello Fresh

Managing innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
1) Describe the innovation theories which is suitable for selected company..............................1
2) Explain the historical development of products or services of organisation...........................3
3) Recommend possible future development pathways of products or services of the
enterprise. ....................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term innovation is defined as the formation, growth and changes of a new goods or
services and process with the purpose of enhancing effectiveness and efficiency in order to gain
competitive advantages (Bahl, Lahiri and Mukherjee, 2021). This is to introduce and invent
products which create value which end users will pay of their purchasing items. Managing
innovation leads to develop clear direction for the development of performance and bring new
products in market place in order to achieve organisational goals and objectives. Hello Fresh is
considered in this report. This organisation is a type of public traded company in a meal kit and
headquarters is in Berlin, Germany. However, the founder of Hello Fresh are Dominik Richter,
Thomas Griesel and Jessica Nilsson as these people are CEO and COO of enterprise. In 2011,
they launch their entity for the launching of their business. They manage and operate their
business in United Kingdom, Belgium, France as well as Australia. The revenue of this
enterprise is 2.01 billion. However, the number of employees work in their entity are approx
5000 which helps them to perform their work effective and efficiently. This company offer
products such as meal kit and deliver their services to each and every final users to their front
door. This report includes innovation theories, historical development and future development
pathways of products or services in selected entity.
1) Describe the innovation theories which is suitable for selected company.
Innovation signifies to build new opportunities in market to increase the profitability and
productivity in order to remain competitive in market. It allow them to develop better quality of
products in market to meet satisfaction of customers which helps them to fulfil needs and
demand of them. However, this helps them to improve productivity, decline costs, develop the
strong relationship with ultimate users in order to attract them to buy the goods from them. When
company is using innovation and invention in their business activities and process which helps
management to plan the strategy as it saves time and efforts as well as the resources (Biemans,
2018). Administration of Hello Fresh is in better position enhance their supply chain which allow
company to improve as well as develop audience experience which helps them to know about the
taste and preferences so that they can develop next recipes based on their wants. There are
different theories of innovation such as radical sustaining, radical disruptive, incrementally
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sustaining as well as disruptive, diffusion and Schumpeter's theories. However, the best
innovation theories which is adapted by Hello Fresh which are mentioned below:
Diffusion of Innovation theory: This theory is developed by E.M. Rogers and is
launched in year 1962. This theory explains about the new ideas and technology which helps
them to spread the knowledge of their innovation to their new as well as existing users. The
theory signifies to identify and understand the marketers to introduce new products or services in
market place. Thus, this helps them to know which type of items they want to satisfy their desire
and needs (Brem, Tidd and Daim, 2019). There are five categories of diffusion of innovation
theory such as innovators, early adopters along with majority, late majority and laggards.
Innovator is the one who first acquire products and services in market. Early adapter is the one
who want to observe the review of goods. Early majority teat the things before purchasing. On
the other hand, laggards are last to adapt the new goods in market. Hello Fresh can adapts this
theory as this helps them to identify and understand the upcoming trends and know the taste so
that they can make recipes which is distinct from their competitors in order to develop
performance and profitability in their business. This is the method by which manager of Hello
Fresh focus on acceptance of consumers towards their organisation.
Schumpeter's Theory of Innovation: This is the theory is proposed by Joseph A.
Schumpeter which signifies that they work by success and growth in order to gain more profit by
successfully introducing new products or services. It states that it introduce new ideas to develop
the performance of business. This is the theory which states to minimize costs of production and
maximize the demand of their goods which build interest of end users to buy products from their
brands. This innovation has two categories in Schumpeter innovation theories in which first
category involves that process which decline the production costs such as launch of new
technique of presentation, introducing new automation machines and equipments as well as
adapting new processes in their business activities and operations (Bucic and Singh, 2018). On
the other side, second category signifies that organisation launch different types of activities
which increase the demand of goods. For example, of this category are development and
implementation of better quality services and products which helps them to allow making
different design of goods to remain in competitive position. In context to Hello Fresh, supervisor
can launch their distinct meals to serve their consumers either by reducing cost of production and
maximize the demand of items in order to gain more profits from their rivals.
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