Managing Innovation: Theories and Frameworks for Business Growth

Managing Innovation

TABLE OF CONTENT
Contents
INTRODUCTION...............................................................................................................................3
TASK....................................................................................................................................................3
Theoretical Explanation.....................................................................................................................3
Theory Application............................................................................................................................6
Future development...........................................................................................................................7
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................10

INTRODUCTION
In a competitive market place, it is important for company to be innovative and create
unique and innovative products to attain success. Basically, innovation is considered as an
important procedure of introducing something new or different that assist business in inviting
more and more customers. As it leads to the launching as well as coming with new ideas,
methods and products that contributes in attaining competitive growth at wider market place.
Thus, it is significant for business organization to effectively manage innovation and always
tries to come up with new and creative ideas in their product line (Sanz-Llopis and
Ostermann, 2020). With the assistance of this, company can improve their customers base
that positively contributes in increasing profitability level at competitive market place. For
attaining the same, being innovative and creative is crucial for company through which
capturing larger market share from its competitors can be easier. Current project is based on
Vinted, is a famous Lithuanian online marketplace that provide path to user to sell, purchase
and swap new or second-hand items including clothing and accessories. Company also
focusses on providing new and innovative products to its customers in order to make them
satisfied. Project is going to discuss about different innovation theories and framework that
may assist company in improvising their overall performance at competitive market place. At
last, future development is also mentioned in this project that directly provide opportunities to
establishing their positive brand image in-front of customers and market as well.
TASK
Theoretical Explanation
Innovation is the development of renewing and updating an area, a company, or a service by
launching innovative methods, establishing new techniques, or generating successful
concepts to produce new value. The successful introduction of effective ideas is critical to a
company's opportunities to boost its procedures, bring newly designed products or services to
market, maximize productivity, and, very crucially, improve efficiency. Changing or
eliminating organizational efficiency and profitability, or to allow the company to broaden or
improvement of existing products and services (Gasparin and et. Al., 2021). As, innovation
planning is fundamental since it is what allows the company to stay successful in the long run
by continually staying ahead of competition and having higher profits. Inability to see the
significance of innovative business results in an organization remaining trapped with old
offerings, or even going out of business, while competition begin to maintain its leading
position by giving new and greater benefits to clients. In this context, Vinted is also operating

for introducing new and innovative ideas to developing unique product line. This can be
assist providing quality products to its customers as per their need and wants (Brem, Tidd and
Daim, 2019). For attaining favourable results, Vinted use various innovation theories to
maintain their positive brand image at competitive market place. As there are various
innovation theories that company can use to make their product more unique and innovation.
All the innovation theory can be understood by following points:
Blue Ocean theory of innovation: The combination of high - quality and low cost at
the same time in order to open up a growing market system and increase market pressure is
known as a blue ocean strategy. It is all about generating and controlling unchallenged
market space and so rendering the competitors irrelevant. It is founded on the concept that
market borders and business environment are not fixed and may be recreated through the
thoughts and behaviour of industry participants. Basically, A Blue Ocean Strategy refers to a
demand for a particular product in which there is no or very little competition. This method
entails looking for a company in which only a few companies exist and because there is no
factor determining. Blue Ocean Approach can be used in a variety of industries or enterprises.
It is not limited to a single industry. But first, let's define Blue Ocean strategy and how it
differs from Red Ocean approach. In today's economy, most businesses compete fiercely for
market dominance and will go to any length to obtain it. When a product's price is under
competition, a company's operations are at risk. This happens most often when a company
operates in a crowded market, commonly described as a 'Red Ocean.' A Blue Ocean Strategy
seeks to identify and create “competitive advantages” (uncontested, rising markets) while
avoiding “red oceans” (overdeveloped, saturated markets). In a blue ocean market, a
company will have much more performance, less risk, and higher profitability. When there is
little potential for expansion, organizations look for niches or ways of establishing new
company from which they can enjoy unchallenged market penetration, or 'Blue Ocean.' A
blue ocean arises because there is the opportunity for higher earnings due to the absence of or
insignificance of rivalry. By developing a product with greater characteristics, the strategy
tries to capture fresh demand and render competitors irrelevant. It assists the corporation in
making large profits because the goods can be priced a little high due to its unique qualities.
This strategic thinking technique differs from the traditional skills and management,
which focuses on numbers and competitor analysis (Dawson and Andriopoulos, 2021). Blue
Ocean Strategy is about building demand in a rising, uncontested industry and conquering
this unchallenged space, instead than aiming to capture higher market share for an already