Managing Innovation: Blue Ocean Strategy for BrewDog

Managing Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................3
INNOVATION THEORY ..............................................................................................................3
Definition, Principles and Processes of theory...........................................................................3
Evaluation of the theory..............................................................................................................6
APPLICATION OF INNOVATION THEORY .............................................................................7
Company background.................................................................................................................7
Historical development...............................................................................................................8
Future development.....................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation management involves the process which help in managing innovation in
organisation so that the company processes, products or services can be improved and made
more effective which help in achieving organisational goals in an efficient manner. Innovation
management help the companies in grabbing the opportunities which are present for the growth
of company both in the internal and external business environment so that with the use of
innovative and creative thinking new products can be introduced (Agnihotri, 2016). Innovation is
a process of improving and modifying already existing products or services so that they can be
made better. With the help of innovation changing customer demands can be fulfilled effectively
and also it help in increasing the cost and time effectiveness of company so that it can gain a
competitive advantage in market. There are many concepts and theories of innovation which can
be used by companies like Blue ocean innovation, diffusion innovation and disruptive
innovation. In this report blue ocean innovation model is chosen which will be applied on
BrewDog so that the development of innovation in company can be studied in detail. The
principles and processes of theory selected will be discussed along with its evaluation. Further
the historical and future development of innovation will also be discussed in this report.
INNOVATION THEORY
Definition, Principles and Processes of theory
Blue Ocean strategy is a strategic organisational approach and is about acquiring the
markets where there is no or less competition so that new demands in market can be created.
This enables the company to manage prices as per market demand without being under any price
pressure from their rivalries. This strategy help in increasing the market share of company by
offering customers with products and services which fulfil new demands of customers. High
profits can be earned with this strategy as high prices can be charged by companies due to new
and unique features which are offered through innovative products. A pure blue ocean has no
competitors in market which means that prices can be set without the constraints of competition.
Also the company can decide where to offer its products and how to expand in market so that all
the potential market can be captured and company profits can be increased (Akbany, Sitalaksmi
and Mgt, 2019).

Principles of Blue Ocean Strategy:
The principles of this strategy must be applied while application of this theory by
companies so that they can minimise the risk of applying the Blue Ocean strategy while
maximising the benefits of its implementation: Reconstruct market boundaries: With this principle the managers of company can
identify the ways in which new market demand can be created across the industry
domains so that the new ways of creating demand can be evaluated. This principle help
companies in making competition irrelevant by looking across the six conventional
boundaries of competition so that commercial advantage can be achieved (Biemans,
2018). Focus on bigger picture, not on numbers: This principle help the company in planning
process which can help in bringing valuable innovation in its products or services so that
the opportunities of blue ocean can be effectively captured. With this principle the
number of innovations are not focused instead the quality and value of such innovating
are focused. Reach beyond existing demand: This principle help the managers of company to better
meet existing demand of customer and reaching to a large market segment so that market
size can be maximised and company sales can be increased. Through this principle small
target markets can be increased by meeting their demands in an efficient manner. Right strategic sequence: It is important that the businesses not only create maximum
value for customers but also build a viable business model so that the risks can be
mitigated. Right strategic sequence is important so that all the strategies which help in its
growth and expansion can be applied in an efficient manner so that more number of
customers can be attracted (Brinkhoff, Suwala and Kulke, 2016). Overcome organisational challenges: In order to effectively apply the blue ocean
strategy it is important that the hurdles which might be faced by companies are overcome
like availability of resources, motivation among workers and managers, political hurdles,
time management etc. By dealing with these challenges, organisations can be encouraged
to apply the strategy efficiently by involving all the employees and engaging in effective
implementation of strategy in company.