Strategy Enterprise and Innovation (Deliveroo Case Study)
Verified
Added on 2023/01/17
|12
|3945
|71
AI Summary
This document discusses the key innovation drivers that contribute to Deliveroo's success and the strategies used by the company. It also explores the Blue Ocean tools and frameworks implemented by Deliveroo to stay competitive in the market.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Strategy Enterprise and Innovation (Deliveroo Case Study)
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents MAIN BODY...................................................................................................................................3 Using models classify and evaluate the key innovation drivers that contribute to Deliveroo's..3 Appropriate Blue Ocean tools and frameworks..........................................................................8 Set of conclusions that succinctly highlights the key aspects covered in the literature............10 CONCLUSION..............................................................................................................................10 REFRENCES.................................................................................................................................12 2
INTRODUCTION Business strategy is the main target of any organisation which helps to deal with difficulties and improve the working activities. There is a combination of different plans which are used to increase the production. This is important for business industry to make effective business strategy which can be used to develop the products and services. In other words, strategy is a plan which is prepared by management in order to accomplish the business goals and objectives(Caloffi and Mariani, 2018). Every industry focus on goals and then make strategies which helps to deal with critical situations. To understand the importance of case study of Deliveroo that is running online food ordering and delivering organisation. This organisation was founded in 2013 by will shu and headquarter at United Kingdom, England, London and other places. A delicious food is provided by this company which helps to meet with mission that is become best local restaurant direct to people doors and transform the method to eat. The aim of Deliveroo is to deliver healthy and tasty food direct to customers as fast as possible in less time. Different topics are going to be covered in this report that are model and key drivers who are contributing in success of Deliveroo. Moreover, description of different approaches which is shaping entrepreneurial vision and business model. In addition to this, competitive strategy at both business units and corporate level are discussed in this report. MAIN BODY Using models classify and evaluate the key innovation drivers that contribute to Deliveroo's Innovation is the way of introducing new products and services in order to attract customers which helps to increase the organisational image and productivity. Technology is changing as per customer demand where organisation need to make changes in their existing products and services that can attracts customers and encourages them to buy them(Ramus and et. al., 2018). To earn higher profits organisation need to make strong strategy which can help to run business activities effectively. For instance, Deliveroo which is food delivering organisation mission is to bring best local restaurant which directs people's doors as transform the way customers eat. This helps to innovate and expand the business by offering best choice and convenience. Its main target is to bring healthy and tasty food direct to customers in less duration that helps to increase the nbumber of customers. The chosen organisation 'Frank algorithm' which relies on powerful 3
predictive technology, helps to deliver and distribute on different location, restaurant, riders and customers. The time of delivery of food is reducing in context to respective organisation which helps to deliver the food in less time in order to increase organisational productivity and profitability(Vlados, Katimertzopoulos and Blatsos,2018). In business environment there are many factors which works as innovative key drivers in context to Deliveroo that are as explained Economic key driver –This is one of the main key driver which is playing important role in innovation and organisation who is adopting that states if economic condition of any country is good then it become easy to run business by implementing innovation. This has good impacts on Deliveroo as management bring innovation because economic condition of UK is good that shows people have good source of income. By having good source of income people place more food order which helps to increase the organisation productivity. This factor give good and bad both impacts on working when organisation is introducing new product or services with the help of innovation(Yang and Fang, 2018). Technology key driver –Demand and lisfestyle of people are changing day byu day which is require new technology and innovation in order to introduce from new products and services. This is important which helps in managing the operation effectively and attracts customers more. This driver is affecting business of organisation in good and bad way. For instance, by using technology key driver Deliveroo become more able to deliver food in less time and get prepare tasty and heathy food which make feel good to customers and increase the number of delivery orders. The negative impact is this require high investment and funds to implemnt new technology which many be difficult for organisation. Social key driver -This factor includes some aspects such as taste, preference and lifestyle of people which is important for organisation to establish and run it effectively. This is important for business organisation to focus on customer needs and wants which helps to make customers happy and satisfy. As management of Deliveroo has identified that people are suffering from late delivery of food that make them sad and dissatisfy. By considering this problem management has decided to establish a company and deliver food at less time by using new technology and innovation which affect business in good manner and grabbing the attention of customers more (Santoro and et. al., 2018). 4
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Therefore, all discussed key drivers of supporting innovation which help Deliveroo to bring new and innovative idea in business market and garb the customers attention. Such drivers attracts customers by introducing new methods which increases number of customers. Deliveroo's numerousstrategiesto help shape itscompany strategyand businessmodel. Competitive tactics at both the level of the business unit and the level of the organization. The goal of Deliveroo is to bring the best local restaurant to the doors of the people and to transform the way in which customers eat. The business offers the best option and comfort by continuously innovating and expanding. In addition, Deliveroo's mission is to provide consumers with great food directly within a minimum duration of less than 30 minutes(Sinclair and et. al., 2018). The 'Frank' algorithm is constructed on influential predictive technology, which helps to evaluate effective distribution order based on restaurant location, riders and customers. Having already reduced their time by 20 percent, Deliveroo simply means that riders can now deliver more per hour and boost their earnings. In additionto this, the respective organization has introduced many techniques that help shape it market strategy and business model. Such methods are explained as follows: Porter's generic strategy –This technique helps to assess a company's course. Michael Porters developed Porter's standardized approach that involves four tactics that a company can use to attract customers and achieve competitive advantages(Yunfei, Bo and Jiaming, 2018). According to the respective author company,the clear course to beat competition should be chosen. Three techniques formed the basis of this model. For example, That is to say, cost control,distinctionandemphasis.Hesubsequentlysplitintotheemphasisoncostand distinction. Dileveroo's description of these four phases is as follows:- 5
Source:Porter's generic strategy,2019) Cost leadership –In this strategy, an organization's motive is to become industry's lowest cost producer. In addition, the traditional method of achieving the goal of cost leadership is manufacturing on a large scale that allows an enterprise to maximize economies of scale. To become a low-cost producer, such techniques, such as high productivity rates, high capacity utilization, lean production methods, efficient use of technology in production processes, and many more, are needed. Cost leadership strategy requires close cooperation across all company functional areas. Cost leadership approach is not ideal for Deliveroo's if they come up with an innovative idea to supply food in less time(Kutsyk and Kovtun, 2019). Differentiation -This approach makes their products distinctive and more appealing to others in ordertoachievecompetitiveadvantages.Businesscompaniestargetlargemarketsby differentiationstrategy and emphasison wider-scaledifferentiation.Deliveroo focuses on differentiation strategy as its delivery time is low by 20 percent and consumes less than 30 minutes. There is a high level of rivalry in food ordering and distribution, so it is necessary to use dda diverse strategy for the respective business. This will allow them to attract large numbers of customers and to service them effectively as well. As they concentrate on large market area across multiple consumers as they provide services to various locations such as UK, Netherlands, 6 Illustration1: Porter's generic strategy, 2019
France, Belgium, Hong Kong, Ireland, Spain, Italy, Australia, Singapore, Kuwait and the United Arab Emirates. Cost focus –Focus on reaching the niche market and providing the lowest possible price in this strategy business. Cost-focus strategic goods are typically generic, somewhat similar, to the typical market-leading products, as well as appropriate to a sufficient number of customers for revenue generation. For Deliveroo, the respective approach is not appropriate as they do not concentrate on both the expense and the small market segment(Yuping, 2019). Differentiation Focus –The company aims to achieve product differentiation in this approach, but in an smaller, number of market segments. As this company focuses on this group's small number and clearly attract this group's necessity. Therefore, for this approach to be effective, a business firm must first recognise that a consumer group has a different set of requirements than the broader market population. There is no valid basis for distinction if there is no difference in need. In fact, the company must also ensure that the specific and unique needs they have established are not already attracted by another competitor(Kraśnicka, Głód and Wronka- Pośpiech, 2018). Deliverooimplementsastrategyofdifferentiationastheycomeupwithsomethingelse Thatistosay,20%reductionindeliverytime,meaninginlessthan30minutes.Inaddition,they coverthelargemarketsegmentinordertomaketheirrespectiveapproachmoreappropriatefort hem. Ansoff matrix It is also called the product or market expansion grid as well as it is also considered as techniques which is utilised through entities for analysing and planning its growth strategies effectively. Moreover, this also represents four strategies that aids into their growth as well as also aids them to analyse the risk associated with each plan of action.. all the strategies in respect of Deliveroo are discussed below: Market penetration:It is also considered as strategy which is no so much expensive as this leverage various existent resources and abilities of firm. Into growth market, maintaining the share of market will outcomes into growth as there are few existent opportunities that aids in enhancing market share. This strategy is not effective for Delievroo as they are not coming up with existent product into existent market place. 7
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Product development:Within this strategy, firm formulate new goods through targeting its existent market share. Delievroo is executing strategy related to product development strategy into its performance as they are brining something creative that is minimisation into delivery timing by 20% that means that items will be delivered in less than 30 minutes(Shtal and Babenko, 2019). With this creative ideasDelievroo is brining it into existent marketplaces so they may grab the attention of various consumers as well as offer them in efficacious way. Market development:Within this strategy, organisation seeks for development through targetting new marketplace with its existent goods. The market development strategy is not appropriate for respective organisation as they are providing creative services into an existent marketplace(Vézina, Ben Selma and Malo, 2018). Diversification:Organisationdevelopthroughdiversifyingintonewbusinessby formulating new products and targeting new market place. Therefore, for respective organisation, the product development strategy is very much appropriate as they bringing something creative ideas within existent marketplace. Appropriate Blue Ocean tools and frameworks Blue ocean tool is a strategy or simultaneous pursuit of differntiation that states a organisation can establish a business at a lower cost in new market by creating demand and needs. In other words, this model includes capturing uncontested market place, creating, and innovating the products which helps to increase the productivity of organisation. By using this model organisation maintain high brand image and position in market which increases sale and profits. In context to Deliveroo, management uses this strategy which is based on market boundaryandindustrystructurethatisnotgiven.Managementofsuchorganisation reconstructed structure by actions as well as beliefs which helps to maintain the customers. Deliveroo organisation is getting success by implementing Blue Ocean model which helped to run business in competitive environment. For example, management of respective company has analysed that people are suffering from late delivery of food. This threat of other organisation became opportunity for Deliveroo which has used Blue Ocean model to compete with competitors by delivering healthy and tasty food in less time or 30 minutes. So, respective organisation has bring new technology in their business which help to deliver the food by reducing delivery time up to 20% and try to serve food in 30 minutes. By using this model 8
company is enjoying uncontested market space and Blue Ocean nwhich increases number of customer as they get food delivery on specified time or less time period. Moreover, by using this organisation is getting many advantages such as it make competition irrelevant, break the value cost trade off, align the whole system of firm's activities in pursuit of differentiation and low cost. So, Blue Ocean framework is effective tool which is used by organisation to won the competition by innovating products and services. Moreover, Deliveroo company is using Value innovation tool in their business activities as it brings innovation and new technology in market area that are as explained: Value innovation –This is a process which is used by a company to introduce new technology or upgrade existing process which is designed to attain both product differentiation and low cost. This is synchronous quest for separation which make minimqal efforts for two purchaser and the organisation. This framework was create by W. Chan Kim and Renee Mauborgne who states this is the foundation of market making procedure. This is not necessary for organisation to create a completely new product and technology instead of this they can improve on existing services and lower the cost of that service for both which helps to maintain the productivity of organisation. Deliveroo creates value for customers when they create options that are not previously accessible in food ordering and delivery industries. Execution of such imaginative idea has numerous benefits of Deliveroo, such as being able to attract large numbers of customers, business growth, catching future market chances, and most importantly, their delivery boy will deliver more order products every hour. The groundbreaking aspect that they introduce is a 20 percent reduction in delivery time, which ensures that the requested item will be shipped in less than 30 minutes after ordering. Deliveroo analyses the entire market and its situation, rising demand for customers and much more. All this is important because, before coming up with something new, it is essential to analyse the business atmosphere as well as the current industry in which the corporation is working to ensure that the innovative idea is successful. Thus, Deliveroo has identified that customers are facing problems with organization's late delivery services within this industry. Thus, by taking benefit of this issue, the respective organization implements innovative ideas by reducing their delivery time by 20% and delivering ordered item in less than 30 minutes. Through these activities, Deliveroo Company will be able to attract a significant number of customers as well as a better market position. 9
Set of conclusions that succinctly highlights the key aspects covered in the literature. As per the literature, it is concluded that using various innovational drivers, an entity implements to make the surrounding business environment suitable in executing workings. In addition, it is crucial for an enterprise to apply innovational model in their workings so to come up with something unique and new as it will assist in conducting the operations in innovative ways. Other than this, various strategies are adopted by Deliveroo company managers while executing operations at the time inventing new idea so to reduce the delivery duration by 20%. in context to Porter's generic model, the entity uses differentiation strategy at the time they comes with unique things through covering large market segment(Kitsios and Kamariotou, 2019). In contrary, the another strategy that is opted at respective business is Ansoff matrix that is majorly used for attaining business growth by opting product development as the entity will deliver innovative idea in current market in respect to current clients. With the mentioned strategies, the company gets assistance services in carry forwarding and executing innovational idea in the practices of company in effective ways. In Moreover, management team of Deliveroo also exercise practices through Blue Ocean Model within their day to day activities as to gain success in the dynamic business environment. With the Blue Ocean model, strategy of value innovation is more preferred by the organisation as to bring innovational idea in the discussed market. CONCLUSION Preparing creative strategy is the essential part of the effective company that keeps it profitable and draws the audience's attention. In addition, the manager must have a foresight vision and efficiently predict the dynamic environment as it can improve the company's functioning and lead them to take advantage of the opportunity. The company must therefore concentrate on leadership capabilities that can be groomed in its ability to participate in the decision-makingprocessandprovidevaluableadvice.Afterthediscussionabove,itwas summarized that it is important for a company to execute business strategies in a suitable manner as these will be the only ones that will help to gain competitive advantages. There are several engines of innovation that help businesses come up with something creative in the marketplace and satisfy consumers by meeting their needs and wishes.Blue Ocean is the approach that helps the organization succeeds.Uncontested market share or Blue Ocean can be enjoyed by applying the Blue Ocean strategy business. There are two models the implementation of which is 10
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
important for an enterprise as it allows them to execute an effective strategy for gaining competitive advantages such as the traditional model of porter and Ansoff. 11
REFRENCES Books and Journal Caloffi, A. and Mariani, M., 2018. Regional policy mixes for enterprise and innovation: A fuzzy- set clustering approach.Environment and Planning C: Politics and Space. 36(1). pp.28- 46. Ramus, T., and et. al., 2018. Social or commercial? Innovation strategies in social enterprises at times of turbulence. Business Ethics Quarterly. 28(4). pp.463-492. Vlados, C., Katimertzopoulos, F. and Blatsos, I., 2018. Innovation in Stra. Tech. Man (strategy- technology-management) terms.Journal of Entrepreneurship and Business Innovation. 5(2). pp.1-26. Yang, Z. H. A. O. and Fang, W. A. N. G., 2018. Local Government's Innovation Incentive Policies and Enterprise Innovation Performance: Experiential Evidences from the Party Newspaper and Industrial Enterprises.Journal of Hunan University of Science & Technology (Social Science Edition). (2). p.11. Santoro, G., and et. al.,2018. How SMEs engage in open innovation: a survey.Journal of the Knowledge Economy. 9(2). pp.561-574. Sinclair, S., and et. al., 2018. Social innovation, social enterprise, and local public services: Undertaking transformation?.Social Policy & Administration. 52(7). pp.1317-1331. Yunfei, S., Bo, P. and Jiaming, F., 2018. Research on Inner-enterprise Synergy and Innovation Performance from the Perspective of IT Capability.Management Review. (6). p.6. Kutsyk, P. O. and Kovtun, O. I., 2019. INNOVATIVE COMPONENT OF THE STRATEGIC SETOFANENTERPRISE:DIRECTIONOFINTEGRATEDREPORTING DEVELOPMENT.Financial and credit activity: problems of theory and practice. 2(29). pp.159-168. Yuping,G.,2019.ResearchonEffectiveInnovationMeasuresofEnterpriseEconomic Management Based on Innovation Ability Training. Kraśnicka,T.,Głód,W.andWronka-Pośpiech,M.,2018.Managementinnovation,pro- innovation organisational culture and enterprise performance: testing the mediation effect. Review of Managerial Science.12(3). pp.737-769. Shtal, T. and Babenko, D., 2019. The management system of information procuring of the innovation activity at the enterprise. Vézina, M., Ben Selma, M. and Malo, M. C., 2018. Exploring the social innovation process in a large market based social enterprise: A dynamic capabilities approach. Management Decision. Kitsios,F.andKamariotou,M.,2019.Businessstrategymodellingbasedonenterprise architecture: a state of the art review.Business Process Management Journal,25(4), pp.606-624. (Caloffi and Mariani, 2018)(Ramus and et. al.,2018)(Vlados, Katimertzopoulos and Blatsos, 2018)(Yang and Fang, 2018)(Santoro and et. al.,2018)(Sinclair and et. al., 2018) (Yunfei, Bo and Jiaming, 2018)(Kutsyk and Kovtun, 2019)(Yuping, 2019)(Kraśnicka, Głód and Wronka-Pośpiech, 2018)(Shtal and Babenko, 2019)(Vézina, Ben Selma and Malo, 2018)(Kitsios and Kamariotou, 2019) 12