Managing Innovation in Just Eat: Application of Blue Ocean Strategy

MANAGING INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
INNOVATION THEORY...............................................................................................................3
Application of innovation theory................................................................................................3
Company background.................................................................................................................6
Historical development...............................................................................................................7
APPLICATION OF INNOVATION THEORY IN FUTURE DEVELOPMENT.........................9
Future development.....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In this current competitive business environment it is very essential for the businesses to
continuously manage and bring new innovations in their product and services. Innovation is
defined as the action or process through which a person or company brings in something new
within the existing product or services. The present report is based on company Just Eat which is
an online food order and delivery service. This company is a mediator between the food
takeaway outlets and the consumers and was founded in year 2001. The present study will
discuss about the innovation theory as for operating in highly competitive market it is very
essential to apply some innovation theory. Further the report will also highlight the background
of company and historical development. In the end the future development of company with help
of innovation theory will be done.
INNOVATION THEORY
Application of innovation theory
For working in the competitive market it is very important for Just Eat to continuously
conduct the market research (Zeng, Hu and Ouyang, 2017). This is pertaining to the fact that
market research will assist the company in analysing the current changes taking place within the
market and because of this research they can adapt to the latest trends of consumers. Hence, for
this Just Eat can make the use of Blue ocean strategy. This theory is a simultaneous pursuit of
low cost and differentiation strategy to open up a new market place and try to develop and create
new demand for the product and services of company.
Here this theory is assistive as this state to adopt or bring in some new idea or product
which has not been used before. This is a theory which continuously works in improving the
existing product or service and this theory also states that when a person identifies any change or
innovation earlier than their competitors then this provides a competitive advantage to that
company. This is particularly because of the reason that when they will provide the new product
at earliest then this will improve their market position and goodwill among the other competitors
(Mendi and Costamagna, 2017). Hence, the company will get a competitive advantage over the
other companies and this will improve the working of the company to a great extent.
This blue ocean strategy is relating to creating and capturing the uncontested market so
that the competition within the market becomes irrelevant. This theory is based on the fact that

market boundaries and industry structure cannot be restructured by any of the single company
and they have to follow what going on within the company. There are two different strategies
that is blue ocean strategy and the red ocean strategy. The blue ocean strategy is the one which
has a major focus on the creating the uncontested market space for the companies. This is
particularly because of the reason that when the new market is being created then this makes it
an opportunity for the company. Under this blue ocean strategy another major feature is that this
makes the competition irrelevant as the new uncontested market is being created and not the
existing one is used.
In addition to this the blue ocean strategy assists company in creating new demand and
capturing the new market place. This assists the company in increasing their sales and the
profitability of the company. Along with this, the blue ocean strategy aligns the whole system of
the activities of the company with respect to the major focus on the low cost and differentiation
strategy. This is particularly because of the reason that when the company makes entry in the
new uncontested market then the cost of entry is low and they can have the advantage of
differentiation over the competitors.
On the other the red ocean strategy is the one which has a major focus on competing
within the existing market place only. This is particularly because of the reason that when the
company operates or market the product and service in the existing market place then they have
to face the intense competition. This is particularly because of the reason that when the company
will operate in the existing market only then this will have a great impact over the profitability of
the company. Hence, in order to survive the existing market it is essential for the company to
beat the competition with good and effective marketing and selling strategies. In addition to this
the company also need to exploit the existing demand only. This is particularly because of the
reason that when the company will operate in the existing market only. Hence, they will have to
ensure that they exploit the demand in such a manner that it is profitable and good opportunity
for the company.
In case of Just Eat, the company need to be user of blue ocean strategy instead of red
ocean strategy. This is particularly because of the reason that when the company will be an
creator of uncontested market then this will create a distinct position of the company among the
consumers (Azis and et.al., 2017). Hence, this will attract majority of the people and company
will get a competitive advantage over other companies. In addition to this when Just Eat will