Managing Innovation in Terracycle: Disruptive Innovation Theory

Managing Innovation

Table of Contents
Introduction................................................................................................................................3
Main body..................................................................................................................................3
Disruptive innovation theory..................................................................................................3
Application of disruptive innovation theory in historical context.........................................6
Applying disruptive innovation theory in future development..............................................8
Conclusion..................................................................................................................................9
References................................................................................................................................11

Introduction
Managing innovation in a business is handling various activities required to introduce
something new within the business organisation. It is a combination of management of
various processes along with improvement in the products and services that are provided by
the organisation. The major advantage of innovation is that it will help organisation to
capture large market share and also enhance their service quality (Tan, 2020). The following
report is based on Terracycle which is a private recycling business running in Trenton. It is a
volunteer-based recycling platform which is focusing upon collecting various products that
can be recycled. The organisation is developing various theories and innovation to enhance
their brand value. The report consist of various discussion on benefits and limitations of
innovation to the organisation. Along with this innovation theory applied on historical and
future terms in the organisation and also discussed.
Main body
Disruptive innovation theory
Disruptive innovation theory is a strategy which refers to simultaneous pursuit of
bringing in new products and services in the market and also showing the presence of the
organisation. One of the major purposes of this strategy is to make sure that they are creating
wealth as well as capturing market share for the organisation. Using this strategy organisation
can also achieve competitive advantage in the market and develop a number of different
innovative products and services. Along with this the theory revolves around searching for
new areas where organisations can enter without any additional cost.
When current business environment is taken into context a number of companies are
operating business in intense competition due to which they need to put their major efforts
towards attaining higher market share. The major aim of companies is to make strategies in
order to capture demand in market making their presence in the market prominent enough. In
this way they can successfully deal with the competition in the market and easily invite more
customers towards their offerings.
When taking Terracycle into context they are using strategy that involves a number of
different unique and new features through which they can enhance their competitive
environment. They are effectively undertaking a number of different activities with the help

of which they can capture large market share and also provide a competitive edge in the
market. The strategy includes differentiation, low-cost, value innovation all of which are
aiming towards achieving profitability and productivity. It is very significant for the business
organisation to analyse new market before they are introducing some new product or services
in the market. This will also assist the organisation in developing competitive image.
According to the theory there are four major concepts which are used by individuals to apply
it successfully in the business as mentioned below:
 Business environment innovation is very trendy and one of the basic tools with the
help of which business can grab a number of different opportunities. It is required by
business to use effective innovation in their products as well as services to increase
the demand. In order to do this company also needs to ignore needs and preferences of
consumers who are not their potential consumers.
 Business entrants need to focus upon startups and also downmarket social group so
that they can subsequently fulfil their requirements. It will help the organisation to
significantly address requirement of their consumers.
 Business also needs to focus upon the consumer who is bringing profit to the business
rather than the audience.
 The new entrants in market are making effective use of disruptive innovation theory
through moving upwards in the offering of better solutions than the already existing
players in the market or offering.
 Market can be attracted through making presents by the new entrants as they are
disruptor of the already going on trends. In this way they can successfully provide
high competition in the market through innovation and development.
Therefore when the theory is taken into context it is necessary that organisation is
developing new trends in the market through a number of different mechanical factors
(Baldwin, E. and (Curley, 2020). The organisation is also required to make sure that they are
successfully producing the products at the lower cost so that they can focus on every group of
customers. Four tips that can be used by organisation in order to effectively use innovation
are as follows:
Not all innovation in disruption: Disruptive innovation can be described in a number of
different ways. It is not always necessary that every innovation brought by organisation is a
disruptive innovation. Disruptive innovation is something which was never developed earlier
and is freshly developed in start-ups for small businesses.