Managing Innovation: Disruptive Innovation Theory in Development

This essay provides a comprehensive analysis of disruptive innovation theory, exploring its definitions, principles, and processes. It discusses the benefits and limitations of the theory, particularly in the context of business development. The essay further examines the application of disruptive innovation theory in a historical development context, using Hello Fresh as a case study to illustrate how internet-based and video streaming models contribute to business growth. It also touches upon the potential future development of the theory and its implications for businesses aiming to innovate and disrupt markets. Desklib offers a platform for students to access similar solved assignments and study resources.

MANAGING INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Disruptive innovation theory.......................................................................................................3
Application of disruptive innovation theory in historical development context. ........................7
Application of disruptive innovation theory in the further development context........................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The process of managing innovation encompasses different types of approaches and
initiatives that management in an organization is accountable to take and conduct in appropriate
manner. Innovation is defined as one of those key elements that played significant role in the
context of business success. It drives the attention of administration toward conducting varied
practices, that in turn provide unpredictable advantages in bulk, in case when innovation is
successful. As a practical implementation action, innovation outcomes in form of introducing a
new product or service that aid to meet target audience needs. There are different forms of
theories utilized in the corporate world related to innovation, that contributes to increase
profitability of companies, either small or large. Disruptive innovation is one of those theories,
that apply for purpose of innovating new goods. The study will shed light on application of this
theory in historical and future development context.
MAIN BODY
Disruptive innovation theory
Definitions, principles and process of the theory
Definition
Disruptive Innovation Theory is defined as the process where a comparatively smaller
company is able to challenge an established business enterprise by entering from the bottom of
the market and continue to move up. This theory may be one of the most important aspects for a
small business to consider in order to gain competitive advantage in the industry (Choo and
et.al., 2021). It may help the business to increase its market share and gain popularity among
the customers. Innovative and creative strategies may be adopted by a company in order to
maintain an effective image in the market in order to grow as a successful business.
Principles
There are different principles in the disruptive innovation theory which may help in
getting a better knowledge of the process. It may be useful for a business to utilize the theory in
an effective way (Disruptive Innovation, 2022). These principles may be helpful for the
company in order to make the possible decisions in order to disrupt the market. These decisions

may be significant for the business to increase their productivity. These principles are as
follows:
Imagine the possibilities
It may be beneficial for a business to explore powerful ways in order to reinvent the
company in order to disrupt the market (Si and et.al., 2020). It may require imagining a lot of
possibilities that yet exists which may provide the management of the company with a lot of
options in order to increase its market share.
Aim beyond
The theory states that an organization may not let the past or the present interrupt in the
decision making process of a company. Extensive research of the crucial aspects and data may
be helpful for an organization in order to proceed successfully in the industry.
Encouraging spirit in the team
An organization may instil courage and belief in their team in order to bring innovative
and creative ideas for the business to grow and prosper in the industry (Christensen and et.al.,
2018). It may be helpful for different organizations to gain competitive advantage among the
big businesses in the industry.
Process of Disruptive Innovation Theory
The process of disruptive innovation theory may be effective to clearly understanding
the steps that are crucial in order to appropriately make use of the theory. These steps may be
useful for organizations in order to enhance its decision making ability and gain competitive
advantage in the industry. The steps are as follows:
Identify the key markets of a company
The process focuses on identifying suitable markets for organizations in order to gain
the maximum opportunities to grow and innovate better products and services (McDowall,
2018). The priority markets may be given due consideration while preparing the strategy in
order to increase the stability and success of an organization.
Deciding which markets are of the utmost importance
Once the potential markets are identified properly, it is required to segment them on the
basis of their segmentation criteria which is established by a business. This step may be helpful

for the business in order to choose the preferred place where they will be able to effectively sell
their products and services in order to grow.
Analysing the industry
Under this step an organization may focus on analysing the most important segments of
the potential market in order to gain the maximum benefit. Various frameworks may be used by
the management of the company in order to analyse the major stakeholders such as suppliers,
clients, potential entrants etc. which may have a significant impact on the organization.
Identifying what aspects makes each player powerful
It may be crucial for various organizations to analyse the key players in the industry in
order to identify the value streams (Mousavi, Bossink and van Vliet, 2018). It may be
significant to identify the values that are transferred from one player to another which may help
in addressing the relations between different stakeholders in order to gain a better market share
in the industry.
Hypothesize the ways to disrupt the status
This is the last step in the process which may help businesses to understand the methods
by which the dominant players influence the industry's value. It may be helpful to understand
impact of the relative power of the major stakeholders on the company. The industry structure
may be an important aspect to understand the value creation process in the industry. The
innovative ideas for disrupting the market in favourable ways may be gathered in order to get
solutions for new products and services.
Evaluation of the Disruptive Innovation Theory
Benefits-
The disruptive innovation theory may be beneficial for the business as it may help in
analysing the current situation of the market in order to prepare effective strategies to disrupt
the market. These strategies may be helpful for the business to increase their market share and
increase their stability in order to stay sustainable (Shang, Miao and Abdul, 2019). This may
help the business to stay ahead of the competition and interpret the challenges that may arise in
order to make effective changes in the organizational structure. This theory may be helpful for
the business to gain competitive advantage in the industry and establishing a better image of

the brand among customers. With the help of an effective image in the industry the company
may be able to disrupt the existing market. It may be a major strength for the business to create
dominance in the industry and gaining the trust of customers in order to increase its
productivity.
Innovation is a major strength for any business in the market as it a prominent source of
attraction for the customers towards the brand. It may help a company to increase awareness of
the brand among potential customers which may help the brand to get better advantage in the
industry than its competitors (Si and Chen, 2020). It may be helpful for businesses to improve
their profitability and stay sustainable in the market. This theory may have a positive influence
over the management of a company in order to increase its productivity.
Limitations-
Along with some positive aspect, disruptive innovation theory may have some limitations
as well, that put direct impact on user such as Hello Fresh, as it may tend to utilize this concept
for purpose of gaining commercial benefits. The first limitation of chosen framework is strategy
procedure, which means that the implementation of disruptive innovation theory may require
separate process that consume a lot of time and efforts too (Tsai, Lin and Liu, 2020). It is
important that the separate tactic procedure of focused and emergent on unanticipated issues,
progress, opportunities, more than concentrated on improving comprehending about what works
better and what does not. Another limitation of similar term is that instead of producing services
and products that address current behaviour of consumers, the underlying goal of individuals
may inform the design of creations or innovations. It usually focuses on what buyers actually
need is however far from easy (Williamson and et.al., 2020). Along with that, disruptive theory
may do not enable organization to achieve long term goals, just because the nature of current
concept. It may put adverse impact on Hello Fresh growth and success in the market as well as
further plan that it may develop for purpose of expanding venture globally. It is fact that when a
company is disruptive that mean they may offer already exist product or service in the market,
which in turn provide a specific solution to the target audience, but it is not unique in term. As it
may do not fulfil the need of chosen company in form of achieving further aims such as to
increase profitability more than rivals that affect negatively upon its venture progress. With this
concept, it is necessary for management to add more initiatives that help to make their innovation
plan successful in the world of business.

Application of disruptive innovation theory in historical development context.
Hello Fresh, is one of those publicly traded companies that provide a meal kit to its
customers, according to their needs and expectations. There are several business models in the
business world available that companies utilize for specific reason. In case of hello fresh,
management take approach to use internet based and video streaming models, that play
significant role success and growth of venture, from national to international level. Internet based
model is categorized as business to business, business to customers and more recently, consumer
to consumer. Each category of internet business model in turn provide a lot of benefit to user.
For example, Hello fresh according to chosen form of framework, conduct practice to provide or
sell its meal to end user such as target market, which enable them to build trustworthy relation
with each consumer in appropriate manner (Internet-Based Business Models Definition, 2022).
Firm may aid consumers in form of saving their money with every meal that they attempt to
prepare especially for target market. The utilization of B2C model usually enable Hello Fresh to
sell its meal kit and other innovative products to customers directly that help them to make quick
purchase decision (Savaris and et.al., 2021). With chosen internet based business model,
organization along with above advantages may also obtain more benefit such as to build wide
customer base, develop better understanding about consumer needs and requirements, etc.
Another model that Hello Fresh and its administration may take into their consideration
and use in appropriate manner is video streaming, which meal it may conduct practice to transfer
video files to customers that they may watch and learn to prepare a tasty and healthy meal for
themselves as well as for their family members or friends (Zhang, Li and Yan, 2021). With this
model, company may take approach to make customers happy, by providing them those videos
that they watch and gain knowledge about varied food recipes online, instead of going out of
their houses to learn a cooking process. Streaming term refer to continues transmission of videos
and audio's from a server to a target group. This model may drive the attention of firm toward
making content relevant and up to the mark, that is quite easy to understand by the individuals. It
can be said that by using video streaming model, Hello Fresh may provide the best and
satisfactory services to consumers in excellent manner that aid to reduce the burden of meal
planning, and preparation. Chosen company may have more than 25 fresh recipes that they prefer
to share with customers and also conduct into practical manner for purpose of preparing meal kit.
Video streaming concept allow firm to take pleasure of increasing profitability and also get

chance to increase web traffic, which is one of the most complex tasks that a company attempt to
take.
Historical development- The products and services to Hello fresh is developed through
years excellently. As earlier is to provide a meal kit with few items, but known they are selling a
big meal kit with value added elements. Disruptive innovation theory implication in the context
of chosen company may drive management attention toward offering products and services
innovatively, along with value added concept. The organization was founded in 2011, when it
begin is small journey and now become a largest meal kit provider in the world.
Business canvas model-
Key partners Key activities Value
proposition
Customer
relationship
Customer segments
Employees,
sustainable
suppliers,
owners and
investors are the
key partners of
Hello Fresh.
Value
proposition
require the best
activities like
team
formation, own
distribution
channel, etc.
It may take
approach to
develop a value
proposition in
form of providing
customer videos
that they may
watch.
Each consumer
expect to establish
and maintain
trustworthy and
transparency
relation with
brand, which it
may establish
successfully.
All the people are
Hello fresh valued
consumers.
Key resources Channels
Skilled and
talented
employees are
required to
create value
proposition.
For purpose of
reaching target
customers, Hello
Fresh may take
utilize social
media, internet
and other
approaches or
channels.

Cost structure-
Suppliers and human resource are the most essential, but expensive assets that firm require
using.
Application of disruptive innovation theory in the further development context.
In the recent time, each and every company may develop strategic plans in order to grow
their ventures and make these successful in the complex business world where the competition
level between existing companies reach higher. Hello Fresh like other organizations also develop
strategic future growth plan, in form of introducing a new meal kit with full of nutritions and
minerals that aid to keep customer healthy and keep away from any disease such as obesity that
put negative impact on their health. It taken approach to adopt vegan concept, as everyone switch
to veganism trend and follow the same, in appropriate manner. By following the current trend,
Hello Fresh will gain competitive benefits in the future in term of increasing customer base,
profitability and performance level, which is quite essential for it to do that successfully. Its
creative ideas, enable company to work appropriately on future plan in form of developing
sustainable brand image in the market, where competition level is high. It will give tough
competition to exist and new companies that is also important along with gaining other benefits.
Future development -
`In the competitive market, Every business face many challenges, so they need to create
new ideas and plans for the future innovation. In context of hello fresh its main objective is
create sustainability and the future plans of this company is to create vegan food which is
important for the future development. Company will make vegan meal kit which will suitable
for the vegetarian customer, its is most attractive innovation for the company to attract to the
vegetarian customer and improve the reach into the market. Vegan product incudes cheese, milk,
butter, honey, eggs. The company will provide the vegan kit at the less price as they serve meat
kit . Also, they will provide three meals for two people per weekend, It price will affordable for
the people so that the customer follow the vegan diet.
It will also develop new variety and new cuisine for pure vegetarian and vegan. They
will also focus to create sustainability and support in ecofriendly environment. The company
offer variety of food to its customer over the year. It Meal kit services make the customer life
easier, also provide in vegan it opportunity to the company to grab the market on a positive way

and attract the customer and provide the good quality product. In the company, vegan food
product not provide recent time but it will be the great innovation from the company because
vegan meal market is growing, it will also help the customer which do not prefer non veg food
they will provide vegan meal kit according to the custom. Vegan option for company is the best
option because it increases the company sales also boost public goodwill.
Customer want to try new food variety, so they curious about the new offers serving by
company. It is also used different ingredients they never use before. sustainability is most
important aspect in context of recycling .It will work on sustaining for example box made with
recycling material, also gel packs which is keep the food colder, it also recyclable and contain
water-soluble gel. every customer want fresh food less use of plastic, the company already
determine this habit for company. They also try to use local ingredient in food and spend more
for the hight quality ingredients. Also, they will offer vegan and vegetarian food box which will
suitable for the vegetarian customer, its is most attractive innovation for the company to attract to
the vegetarian customer and improve the reach into the market.
It Meal kit services make the customer life easier, also provide in vegan it opportunity to
the company to grab the market on a positive way and attract the customer and provide the good
quality product. In the company, vegan food product not provide recent time but it will be the
great innovation from the company because vegan meal market is growing, it will also help the
customer which do not prefer non veg food they will provide vegan meal kit according to the
custom. Vegan option for company is the best option because it increases the company sales also
boost public goodwill. In recent time consumer understand the value of vegan so that they are
changing their habits according to the climate change, willing to pay amount for the product
which are good for the environment. so that it will be the good innovation option for their
business growth because there are less business they will offer vegan foods or vegan meal and it
will the best step, taken by the company for growing their business and boosting their sales,
create trust on the company.
CONCLUSION
On the basis of above discussion, it has been concluded that disruptive innovation theory
utilization in the business practices play significant role in organizational success in the
competitive business world. It had enabled company to achieve its strategic aims and objectives
in appropriate manner. By considering and using internet based and video streaming concepts it

has given tough competition to rivals in form of increasing profits and generating revenue more
than them. Furthermore, from above analysis, it has been determined that organization can adopt
more techniques to grow in the future. As it can build a strong and wide workforce in the
workplace that can contribute to conduct an appropriate market research, for purpose of
collecting information about food trends. Its consideration toward trends in the market with
skilled people, make application to disruptive innovation concept successful, which help to
provide vegan meal kit to everyone that people will like the most.

APPENDIX
DISRUPTIVE INNOVATION THEORY
Business canvas model

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