Managing Innovation: A Case Study of Ocado

Managing
Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Definition, Process and Principle of Innovation theory (1250-1400 words)...............................3
Benefits and Disadvantages of Blue ocean strategy....................................................................6
Historical Development of Goods and Services at Ocado...........................................................7
Future development pathways.....................................................................................................8
CONCLIUSION............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management of innovation is necessary for any organisation to retain its market position,
customer’s satisfaction and loyalty in particular industry. Innovation can be termed as way of
doing specific activities in different methods or inventing new products and services that can
bring changes in society. Organisation through innovation enhances their profit margin and
customer satisfaction thus able to gain competitive advantages from other competitors in market.
This report is about Ocado that is world largest online grocery retailer dedicated to provide
services to large number of customers within limited time frame. It have use innovative idea to
directly delivered products to end customers through several warehouses rather than chain of
stores in order to differentiate itself from other competitors in market. The report has discussed
that way Ocado manager have used innovation theory to attract and retained maximum number
of customers for future growth and success of enterprise. It also suggested future development
pathway for products and services so that it can grow and expand its market share for longer
period of time.
Definition, Process and Principle of Innovation theory (1250-1400 words)
Company group has used several innovation theories in order to meet needs and demand
of different customers and expand its business operation. One of innovation theory used by
Company to gain competitive advantages is diffusion of innovation theory. This theory states
that diffusion or adaptation to changes is part of social system. In another term diffusion of
innovation means that it takes long time to people to accept different changes, ideas or behaviour
or products and services. Some segment of people in large population accept changes earlier
whereas other after more evaluation and taking feedback from other people are able to accept
external changes or products and services manufactured by firm (Cohendet, Parmentier and
Simon, 2017). Diffusion innovation theory is one of the oldest theory made by E. M. Rogers in
1962 that actually explained the way new techniques or innovative products is accepted by range
of customers over specific period of time to satisfy their respective needs. Company while
brining new techniques to delivered products and services have identified target customers
ranges in order to grow and survive in market for long term. As per diffusion theory there are
five types of adaptors of innovation that are categorised below to know about their specific
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characteristics and the way they are motivated to make purchased from specific firm as
compared to another. Company have make use of these five segment in order to formulate
different strategies to cover market share and earn maximum amount of profitability. Such as:
Innovators: There are various individual in society which always searches about new and
innovative method to satisfy needs of people. Such people have ability to take various associated
risk in order to adapt to recent changes of environment or to bring new changes within society
(Saunila, 2017). It can be stated that most of the entrepreneur or venturesome are people that are
part of innovators category. They take first mover advantages by adapting or brining new method
of doing particular task so that best outcome can be gained.
Early Adopters: It is another segment of people that are present in society which can be termed
as leaders as they have knowledge regarding several changes that will bring up in societies in
order to make their life better and relaxed. Such people accept changes of external environment
or innovation brought by firms in order to fulfil their unsatisfied wants or resolve their problem.
Company through increasing its presence in online sites and providing relevant information
through WebPages is able to meet requirements of early adopter category people in best possible
manner.
Early Majority: There are some people in society which get influenced to make purchased of
specific products and services after evaluating or analysing effectiveness of innovation by taking
review or feedback from customers. Thus, most of the people can review services and products
of Company through feedback, likes, share and comment on different social sites and webpage of
firm thus make correct decision to select specific products as per their respective requirements.
Late Majority: These are people that does not adapt to external changes quickly so Company in
order to influence such types of customers have used various data’s, feedbacks of previous
customers to provide relevant information about result or outcome of using specific products and
services (Lütjen and et.al., 2019).
Laggards: There are few individual that wants to live with their tradition and customs and does
not accept external changes therefore it is very difficult for firm manager to motivate such people
being part of firm. Such as many of the customers still preferred tradition shopping where they
can go to a shop or stores and can physical touch, feel products to make accurate judgment
regarding purchased of products and services form specific organisation. Therefore as per
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