Zopa and Blue Ocean Strategy: Innovation Theory Application Report

This report provides an analysis of the Blue Ocean Strategy and its application within the financial sector, using Zopa as a case study. It begins by defining innovation and the principles of the Blue Ocean Strategy, emphasizing its focus on creating uncontested market spaces. The report details the core principles of the strategy, including reconstructing market boundaries, focusing on the bigger picture, and getting the strategic sequence right. It evaluates the benefits, such as identifying new markets and fostering value innovation, as well as the limitations, including the difficulty of entering untapped markets and the high risks involved. The report also touches upon the application of innovation theory in Zopa's business model, especially in the context of digital and internet-based operations, highlighting the importance of security and customer service. The report concludes by reinforcing the importance of Blue Ocean Strategy for Zopa's future development, emphasizing the need for continuous innovation and adaptation in a competitive landscape. Desklib provides a platform for students to access similar solved assignments and resources.

Managing Innovation
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Innovation Theory..................................................................................................................3
Application of the innovation theory...............................................................................................6
Application of Innovation Theory for future development....................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
The term innovation is explained as an implementation of practical ideas which is used
for introducing new products and services to the individuals. The primary purpose of the
innovation factor is to improve the existing products or services. All universal standards define
that innovation is identified as a new change or entity which is used for creating and
redistributing the new values in a similar product. The current innovation factor define there are
different concepts exists and all of them focus for spread improvement in value of item for
consumption. The theory of Blue Ocean Strategy refers to the market which is less competitive
and this revolves around the search for a business or sector in which small number of firms
perform and operate their business (Agnihotri, 2016). Zopa is selected as an organisation for this
report and it perform their operations in the financial sector. Moreover, this report highlights on
definition and principles of the blue ocean theory and also on its evaluation for identify benefits
and limitations of the blue ocean theory.
MAIN BODY
Innovation Theory
The Blue ocean strategy is universal in nature and this is induced among all the sectors or
business which is not limited in size and also, relates with more than one business. There are
different sector exists and most of them are not limited for just one business but, at the same time
this is complex to focus on all departments. Therefore, the implement of blue ocean strategy
helps to induce those perspectives which surround towards new business factors and this also
results for perform business with low price pressure. According to the present market conditions,
this is identified that most of the firms face competition from both local and international
competitors (Antysheva, Kochinev and Sviridenko, 2019). So this is necessary for management
to reduce the problems related with the problems that are related with the current market
scenario. There are intense challenges generate problem to manage work in proper manner Also,
the current market conditions defines all situations formulate problem for the individuals to
complete their work in a proper manner. Usually, due to current pandemic conditions there is a
limited room to grow for business and this provides about various competition factor. This helps
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management for capture various demand related with business and also strategy related with
current market scenario, helps for manage all task in a unique manner.
Principle of the theory
The principle of Blue Ocean Strategy is managed with implement of different principles and it
guide the companies about all formulate and execute the blue ocean strategy perspective that is
used for complete all task in a systematic manner. Some of the principles related with theory of
Blue Ocean Strategy are mention as follow:
 Reconstruct market boundaries- The principle identify that entire path which is used
by the authorities of Zopa to complete all work across different domains of industry
(Burke, Van Stel and Thurik, 2016). There are different contested market related space
factor exists and they teach an organisation about all those factors which make better
alternative results for establish the business in a commercial manner.
 To focus on the picture, not numbers- With design about all strategic factors this is
understand that strategic planning process consider to implement incremental
improvements and this is used for provide all information through which task is managed
according to the conventional boundaries of work. This define about the powerful factors
through which all commonalities is used for maximise the size of blue ocean strategy.
 Get the strategic sequence- According to this principle, respective organisation ensure
companies not generate only leap in the values for mass number of buyers but also for
formulate and implement the viable business model. It also refers about the task and this
helps to create the profits in a proper manner.
Blue Ocean Strategy define about all principles and according to this leadership for Zopa
perform an important role and it show about all those factors which make viable perspective and
this helps to maintain profitable growth for business (Jingbo and et. al., 2018). Also, to address
the hurdles principle of Blue ocean strategy helps to create new business terrain factors and this
is used to create about all those strategy which make better sequence factors such a utility, cost,
adoption and price. It results all principle address by execution of risk related strategy to manage
all work according to Blue Ocean strategy.
Processes of the theory
Most of the business organisation fail within a small life time span and with understand of
different factors. This is understood that all tasks are used by management for the better
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entrepreneurial community factors because it helps to manage work according to decided
standard.
 To build the blue ocean initiative- One of the most important perspectives related with
workforce is to complete work according to decided business, products and services that
is used for deal with different factors (Kavadias and Hutchison-Krupat, 2020). Like, the
main focus of respective organisation is to provide loans and this helps for complete work
in a more-effective manner.
 To define and develop clear picture of the current status- The Next need is to ask
about the current accompanying factors. This also provides the straightforward picture
that everybody can comprehend and puts everybody in total agreement. Like, to pass loan
with analyse current security factors to gain the loan. Having an unmistakable and shared
image of the current vital scene is basic. Management furnish with an apparatus that
shows the current key scene in one straightforward picture.
 To identify the hidden perspective for convert them into opportunities- When the
management see various applications with view of offering loan than the ideal
opportunity for Zope is to envision where they want to reach. The test is to foster a
similarly clear, higher perspective on how the suspicions and limits of business industries
exists and additionally the limit is to allure and size by causing "trouble spots". So this
step help Zopa for manage all work in a proper manner.
 Implement of practical factors- Presently the main focus of group is to prepare about all
the productive factors which is used for make common roles to provide the loan. With
blue sea choices that seek after both separation and minimal expense. This implies
applying a precise interaction to recreate market limits and make new market space. To
assist with better factors this is important to tell about the best way to utilize the six ways
system (Ktoridou and Epaminonda, 2016). This instrument will help to see openings
where others see just hurdles to make expenses.
Evaluation of the blue ocean theory
The main role of the blue ocean in an entrepreneurship is to perform work within the new market
and this describe about all factors which is related with innovation. This describe about all those
options and opportunities which is achieved through new innovation. Some of the benefits and
limitations related with blue ocean strategy are mention as follow:
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Benefit
 To identify new market- The term blue ocean strategy cooperates with Zopa or any
other organisation for identify uncontested market. One of the main roles related with
business is to avoid the matured and saturated market (Murthy, 2017). This results
organisation is able to perform all work in an accurate manner and this also assist to
move or add value in company products through induce the strategic models.
 Value innovation- The backbone of Blue ocean strategy is innovation and with alliance
it company requirements more improvement will be identified in company products.
From the perspective of Zopa value innovation offer different benefits by improving
price, cost and utility of the business positions. Moreover, this also creates demand for
consumers to engage the chances of growth potential.
 Fundamental transformation- The main benefit of blue ocean strategy is to make clear
and transparent factors which help management to complete their work through induce
clear concept. In simple terms the blue ocean strategy enables fundamental
transformation among the mind-set of workforce and authorities of Zopa.
Limitation
 Difficult to enter in untapped market- One of the most complex perspective related
with blue ocean strategy is to identify new ideas for enter in untapped market. With
nominate or select the respective strategy management of Zopa need to implement the
detailed process because untapped markets are complex to enter.
 High risk- Most of the unexplored market work as the early phase of business and this
generate problems for management because it contain high risk. Other reason related
with limitation of Blue ocean strategy is that most of the customers are not able to
understand grass root of product and services.
 Option for different ocean- One of the major perspective related with business is to
identify various reasons which is related with extreme initial indicators and also this is
used for manage work according to current market factors (Ramli, Ahmad and Harith,
2016). With build of strategic importance factors and this helps for consists towards
complete of work by new approach to induce new technology which is high in cost.
Application of the innovation theory
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One of the major perspectives related with business of Zopa is to complete work in an
accurate manner. Most functions which are performed by the Zopa related with loans or financial
institutes. In the present scenario, the current market generates pandemic conditions and due to
this monetary transactions or amount of money flow is stopped. With the forward application
process and this helps to complete work in a proper manner. With understand of all work current
scenario, management understand that the clear and easy way of make the transactions is to
complete the work with no hidden cost (Redini and Dell, 2019). Moreover, this also results
excellent customer services is offered by Zopa.
The respective organisation defines all tasks and application is used to manage the money
stress free. One of major perspective related with individuals is to check the individual score and
this is used to manage money according to stress-free perspective. The primary purpose of Zopa
application is check the credit score and also, this helps to take loans with best rate and
borrowing power. Moreover, the existing management of Zopa also, start to provide investment
related advice. But, this is also identify digital and internet based business model generate
challenge for management. Like, threats related with Internet generate problems for the
individuals to induce the transactions due to fraud and false calls. This consider digital business
model is used for make better results by the Zopa for make better transactions and according to
the current market scenario, security plays an important role so touch id and face id both is used
for make all transactions in a secured manner.
Internet Based Business Model are categorised according to business-to-consumer and Business-
to-business. One of the most important perspectives of Zopa is to sell products or service through
design and deliver all information with use of Internet. But in previous time-period, different
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historical development factors are monitored and it include complete of formalities in minimum-
time period. On the other side, consumer to consumer model and business canvas model both are
understand to complete all work in a proper manner. On the other side, the reason to select Blue
Ocean Strategy and the Digital model is to manage work in a more efficient manner and also this
helps to consider the customer needs, methods to buy customers, market potential and
competition, etc. On the other side, with review of products and services the management create
user-content perspectives (Ritzén, 2019). With interact customers this is easy for organisation to
implement innovation among business and this consider that rapid changes are required for make
long better interaction.
Business Canvas Model
The business model canvas is explained as a business tool and this helps for visualise all building
blocks and this helps for start business by including customers, value proposition and route to
market. It helps in completion of task through introduce the finance and it consider for make and
develop the model that provide idea to complete work in a proper manner. Also, visual model
helps for describing and assess the business model to engage all activities in a proper manner.
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Figure 1Source (https://vizologi.com/business-strategy-canvas/zopa-business-model-canvas/)
Application of Innovation Theory for future development
With understand of the business model this is identify that Zopa define their services in a
more accurate manner. The main focus of the Zopa is their customers who provide more
information to the individuals related with company perspectives. The major support offered by
the management of Zopa to individuals is to engage successful factors with in business. With
provide support to the stakeholder better and accurate financial transactions is implement and
this aid effective economy management (Taghizadeh and et. al., 2016). From the perspective of
value propositions this is identified better value propositions is implement and this helps for
attract customers with online-basis. The current market scenario define business model depends
on technology related factors and this define additional and active sales is used for complete
work by marketing the concepts in an easy manner. Further, Zopa services are delivered through
the online methods and it depend on cost-related factors. This defines online channel remove
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direct or physical communication with customers. So cost related factors are managed because
this provides better infrastructures to individuals for provide logical and functional digital
methods to individuals. This also define all sectors are considered with implement of better
infrastructure and data business model to manage all work in a beneficial manner. It is also
logical for management of Zopa to adopt all those factors which make long term benefits for the
organisation to prepare and complete task in a proper order.
Accounts and financial information perform an important role and this considered towards sale
of all products according to the availability of products. One of the major aims related with
application and business part of Zopa is to generate innovation because it helps them to open
door of untapped market. In the recent scenario, Zopa launch their fixed-term saving account and
it offer the 1.3 per-cent interest rate from one to five years. Minimum-deposit amount for Zopa
saving account is estimated about £1,000 and this help to save and also monitor the interest and
balance for deposited amount. Saving account also perform an important role and this is used to
prioritise the peer-to-peer lending origins and other credit options which exist in market. For the
long term use of digital perspectives in Zopa, better support for earn the amount and profits and
this helps to do achieve more existing customers. The current market scenario, allow all
individuals for earn the better revenue and this allow ambition to position products in a well-
positioned manner (Tan, 2020). With unique position all individual capitalise and serve the
demand place to perform work in a proper manner especially, to provide the loans with low-
interest rates. Creative ideas perform an important role and according to this innovation and
company perspective both are used in completion of task in a proper manner. Moreover, future
development provide company website and this make long term results by implement the
application according to decided manner. Further, students consider all those ways and ideas
through which future development make long term plans to complete the work properly. All
individual identify that loan taking is a complex process and this create difficulty to manage
product and services.
With start by working out which business, item or administration Zopa will handle the future
terms. To assist work management do various programs and it present the pioneer-migrator-
pilgrim map. This will help to focus on the space where new pathways are acquired.
Having a reasonable and shared image of the current vital scene is basic and Zopa will furnish
with an instrument that shows the current vital scene in one basic picture. It uncovers how all
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procedures look to purchasers and clients and why this is driving the industry toward the new
market for manage work in a proper manner.
The test is to foster a similarly clear, higher perspective on how the presumptions and limits of
financial industry likewise limit its allure and size by causing "trouble spots". Management
understand and tell the best way to utilize the purchaser utility guide to find what these problem
areas (Wang and Tsai, 2014). Therefore, all work is done with analyse of company perspective
through which task is done according to company perspective.
The main motive of Zopa and engaged group is to prepare and create useful blue sea alternatives
that seek after both separation and minimal expense. This implies applying an orderly cycle to
remake market limits and make new market space. To assist the loans management tell the best
way to utilize the six ways system. This instrument will help to see openings where others see
more expanses of contest.
The fifth and last advance is the place where management figure out how to choose the blue sea
move, quickly test it on the lookout, and refine it to expand its latent capacity. Management tell
the best way to pick the blue sea move to seek after by facilitating a blue sea reasonable (Waters,
2014). The reasonable is intended to remove the legislative issues from the dynamic interaction,
get criticism, and combine individuals' obligation to their picked move and this helps for perform
work with induce of new strategy.
CONCLUSION
With understand of the above report, this is concluded that innovation is one of the most
important method which is used by the organisation for sustain in an intense competitive-market
for longer period. Moreover, one of the important functions of innovation is to enter in the new
market by offering better values to individuals for manage and control all work in a proper
manner. Along with this, process and principles of the innovation theory is also included in this
report to manage task by implement of new values. This also helps for the development of
products and it help to implement the blue ocean strategy among all departments and
applications. New pathways for engage innovation and their use in company roles and activities
will also understand by this report. In the last, historical developments factors are also
understand and this is used for implement the overall applications with more efficiency
especially, to work with company plans.
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REFERENCES
Books and Journals
Agnihotri, A., 2016. Extending boundaries of blue ocean strategy. Journal of Strategic
Marketing, 24(6), pp.519-528.
Antysheva, E.R., Kochinev, Y.Y. and Sviridenko, M.V., 2019, October. Factor scoring the total
potential of a region as a tool for strategically managing innovation in its socio-
economic development. In Proceedings of the 2019 International SPBPU Scientific
Conference on Innovations in Digital Economy (pp. 1-7).
Burke, A., Van Stel, A. and Thurik, R., 2016. Testing the Validity of Blue Ocean Strategy versus
Competitive Strategy: An Analysis of the Retail Industry. International Review of
Entrepreneurship, 14(2).
Jingbo, H and et. al., 2018. A case study on managing innovation paradox of the focal firm in
innovation ecosystem: The perspective of ambidexterity capacity. Management
Review, 30(8), p.290.
Kavadias, S. and Hutchison-Krupat, J., 2020. A framework for managing innovation. In Pushing
the Boundaries: Frontiers in Impactful OR/OM Research (pp. 202-228). INFORMS.
Ktoridou, D. and Epaminonda, E., 2016. Teaching a ‘Managing Innovation and
Technology'Course: Ideas on How to Provide Students the Knowledge, Skills, and
Motivation to Encourage Entrepreneurial Success. International Journal of E-
Entrepreneurship and Innovation (IJEEI), 6(1), pp.38-55.
Murthy, J.J., 2017. Managing Innovation and Developing Intellectual Property Strategies for
Firms. SIES Journal of Management, 13(1).
Ramli, A.S., Ahmad, J.B. and Harith, N.M., 2016. Blue ocean strategy in Malaysian public
sector: An analysis of the four action framework. Advanced Science Letters, 22(5-6),
pp.1702-1706.
Redini, C. and Dell, M., 2019. The Innovation Race: IPR v Knowledge Sharing–Seeking Answer
to Managing Innovation Choice More Efficiently. In ISPIM Conference
Proceedings (pp. 1-11). The International Society for Professional Innovation
Management (ISPIM).
Ritzén, S., 2019. Managing Innovation for Circular Industrial Systems. In Sustainable Business
Models (pp. 181-209). Palgrave Macmillan, Cham.'
Taghizadeh, S.K and et. al., 2016. Scale development and validation for DART model of value
co-creation process on innovation strategy. Journal of Business & Industrial Marketing.
Tan, S.F., 2020. Managing Innovation: Technology, Consumer and Sustainability Perspective,
and the Challenges. In Leveraging Consumer Behavior and Psychology in the Digital
Economy (pp. 205-216). IGI Global.
Wang, C.J. and Tsai, C.Y., 2014. Managing innovation and creativity in organizations: an
empirical study of service industries in Taiwan. Service Business, 8(2), pp.313-335.
Waters, A., 2014. Managing innovation in English language education: A research
agenda. Language Teaching, 47(1), pp.92-110.
Wee, C.H., 2017. Think tank—beyond the five forces model and blue ocean strategy: an
integrative perspective from Sun Zi Bingfa. Global Business and Organizational
Excellence, 36(2), pp.34-45.
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