Innovation and Commercialization Report: Tesco's Strategic Analysis

This report delves into the concepts of innovation and commercialization, examining their significance for organizational growth and competitive advantage. It begins by differentiating between innovation and invention, highlighting the value-added nature of the former. The report then explores the organizational aspects of a company, using Tesco as a case study, focusing on its vision, leadership, organizational culture, and teamwork. It explains the 4 P's of innovation (product, process, position, and paradigm) and the use of innovation funnels to shape ideas. The report also discusses frugal innovation and its application. Furthermore, it evaluates the effectiveness of commercialization funnels for new product development and builds an innovation business case, including funding access. Finally, it assesses the strategies used to protect intellectual property. The report provides a comprehensive analysis of innovation and commercialization strategies, supported by the example of the Tesco company.

INNOVATIONS AND
COMMERCIALISATION

Learner's Declaration: It is certified that the work submitted by me is my own and the
research source are fully acknowledge.

Table of Contents
INTRODUCTION................................................................................................................................4
LO1.......................................................................................................................................................4
P1) Innovation and its importance for organisation compare with invention..................................4
P2) Organizational aspects of the Company....................................................................................6
LO 2......................................................................................................................................................7
P 3- Explain the 4 P's of innovations and explain the use of innovations funnel to examine and
shape innovative ideas.....................................................................................................................7
P4 Developments in frugal innovation and how it is used in an organisation.................................8
LO3.....................................................................................................................................................10
P 5 – Determine the effectiveness of funnel of commercial and development of new product's
application used for innovations and commercialisation...............................................................10
P 6 - Build an innovation business case for an organisation, including ways to access funding...11
LO 4....................................................................................................................................................13
P 7 - Evaluate the variety of factors which is used by the organisation to protect, develop the
understanding and intellectual property of the business................................................................13
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14

INTRODUCTION
The innovation and commercialization means the introduction of new product in the market.
The product which is introduced in the market can be completely a new product or the product can
be an existing product which is renovated according to the needs and preferences of the customers.
Every company wants their products and services to rule the market, but the customer preferences
and the market strategies changes very frequently which cab make the product old and useless for
its customers. To overcome from these problems, the companies changes their strategies time to
time. These strategies includes the innovations of new products. In this the companies do a market
survey in which the current situations of the market in context of customers needs are a evaluated.
Then the new product is innovated according the current market scenario and needs of the
customers. Other is making changes in already existing product of the company in the market.
Many times the company renovates or makes changes in the already existing product of their
company. This is done by adding some new features in the already existing product. For example,
The company maruti has renovated its product “maruti 800” to “maruti 800 alto”.
The Tesco is an multinational grocery store having its outlets in the seven different countries across
Europe and Asia. The company is third largest retailing store in the terms of highest generated gross
revenue. The company have its headquarter at Welwyn Gardiner City, Hertfordshire, England, U.K.
The company was founded in the year 1919 by Jack Cohen. The company was listed third in
London stock exchange and it considered to be third highest revenue generating company in terms
of retailing company. The company has diversified in the areas such as telecoms and internet
services, furnitures, toys, clothings, electronics, financial services, software's, retailing of books and
petrol.
LO1
P1) Innovation and its importance for organisation compare with invention
Innovation Invention
Innovation is a value addition of a device,
product line or ideology through altering the
basic of delivering the higher value to
consumer & services in persistently for
innovating environment. It requires extensive
research and study and complex process.
Invention is an introduction of device, new
product line or ideology which is based on
experimentation and study. Where the
organisation can get inventions registered by
its own name through virtue of a patent (Rasli
and Kowang, 2017).

Innovation has major contribution for the
organisation growth. A fast innovation firm can
have a edge term of growth. Even smaller scale
organisation can grow through bounds and
leaps. If it advance the services and products as
per require if its buyer.
It is a proof for credibility scientific knowledge
without invention existing and science theories
can rendered unfruitful. Than the society can't
reap the profit of an such theories.
Innovation attract talent. In the organisation if
the talented people work, then they provide a
greater opportunity for the firm to success.
It has an unexpected result, as inventions are
always jumped into the things that is unknown.
And posses a grater risk by having an unknown
effects of a substantial result because it is not
possible to forecast the correct outcomes
Needs variety of skills in innovation, before
going for any changes in existing line products,
organisation has analysed profitability of the
product, that can needs lot of talent or skill
including planning and marketing. organisation
hires highly skilled person for an innovation
(King, 2018)..
Invention is an leading priority, For invention
to get an excellent result than it is essential that
no other can come up with a similar or same
idea within the particular innovation time
period. It is only possible for an invention to
get produce at an excellent result.
Innovation provides a technical advantage
where the constantly developing organisation
can have full access over a current technology
and therefore always able to have first mover
advantage and helps to deliver a value to
consumer.
It is building block for the innovation, where
the innovation often putting invention to an
use. And also inventions needs an skill, as
invention can be notably various from others to
gain the essential. For an organisation has to
indulge a lot of experimentation and research
that are to be required right techniques and
skill.
Hence, Innovation is important for the
improvement of the product of the
organisation.
Whereas invention is a basis for the innovation
and therefore it is also essential for the firm foe
providing a continued profit to company (Dutta
and Folta, 2016)..
P2) Organizational aspects of the Company.
Vision -

The vision of the Tesco organisation to become a most greatly valued business through the
consumer it serves, the communities which it operates and its committed and loyal colleagues and
its share holder. To achieve all its vision the company aimed to provide the quality products that
best suits the consumer's requirements. The company has the huge focus on consumer satisfaction
and the quality products based on the needs and demands of the customers. (Dutta and Folta, 2016).
The company also has a vision to provide quality working environment that best shape all the basic
requirements of the employee and also to motivate the employee for proving the best as per the
abilities possess by the employees. Satisfactory work culture and the quality products are the prime
vision of the Tesco.
Leadership-
Tesco as an organization follow the transformation leadership. The leaders in the
organisation work with the team to shape the work and also to identify all the weaker aspects of the
team that helps in better performance and productivity of the whole team. The leaders use several
methods and techniques in the transformation leadership to bring out the best from all the team
members and also to boost the confidence of all the team members. So the transformation
leadership can also be stated as the role model where the leader suggests the best path to achieve all
the targets that are satisfactory enough for employees performance and for the whole team as well.
Leader observe all the individual members in the team and suggest the best based on the
weaknesses and strengths of the employee to improve the productivity of all the employees in the
team. .
Organizational Culture-
Organisation culture of the Tesco focus on the innovation and development and also to
practice it in the basic operations of the company. Innovation also shape the company in the reght
direction that leads to the company for the productive output and also dominate as the cost saving in
the organisational context (King, 2018). Organization culture of the Tesco also provide quality
working environment that helps in shaping all the possessed skills of employee.
Teamwork-
Tesco organization uses to work in teamwork within the company to bring a positive
changes in the work life. By using the teamwork in the organization it helps the employees of the
company to became more creativity and learning as the employee with in the team they get more
opportunity to learn new things and become more creative day by day as work in the team, instead
of being work alone. It also makes the member of the team to become an more idealization and
being the team member the workload are share among the other members in the team and the
member are not get that much work load and can easily perform the challenges or task easily,
whereas the teamwork also allow other team member to share the workload, when everyone

working together for the same goal(Rasli and Kowang, 2017). It helps the employees to become
more talented and learn more while work in the teamwork and also employee make more fun while
work together. Hence, the teamwork help the employee to became more creative and talented which
help the organisation to shape an innovation ideas and make the organisation more
commercialization.
LO 2
P 3- Explain the 4 P's of innovations and explain the use of innovations funnel to examine and
shape innovative ideas.
The 4 P's of innovations are as follows:
 Product
The Tesco deals in various products like credit cards, loans , saving accounts, mortgages, food
items, clothings of all the genders, etc. The innovations made in the products of the Tesco are that
the opening of the saving account and issuing of the credit card was made online for their
customers(Aithal and Aithal, 2016). The company made an offer in which the customers can open
their saving account having the deposit of zero balance in it. They offers an broad range of credit
cards according to customers preferences. These credit cards were providing the facilities like low
rate of interest, 0% bank transfer, 0% money transfer credit cards, 0% purchase and credit builders.
These were the innovations done by the Tesco in the year 2015 to increase their customers.
 Processs
The tesco made its process of delivering te goods more innovative and fast. The company made an
target to increase their sale from 8% to 20%. This was done by making strong relations with the
suppliers of their products(Collins, Reizes and Dempsey, 2016). The company provided many new
machines and vehicles to their suppliers to increase their work efficiency and deliver the goods as
fast as possible. The health and well being sector of Tesco was targeted for the this. The health and
well being products of the companies were delivered within the 30 minutes of the order placed by
their customers. This was done to improve the health and fitness of the people of the country. The
company removed the annual tender process with the suppliers of their product and instead of that
they made two year contract with the suppliers.
 Position
The position of the Tesco was very strong before the recession. The target of the company was to
keep the prices of the products was low as possible so that customers who are not wealthier can also
purchase the products from their company. When the recession occurred in the country, the
customers who were having a good purchasing power also moved to the towards purchasing the low

cost products for their daily use. This increased the sale of Tesco and the loyalty of it's customers
increased at very fast growth rate. The company offered many discounts and offerings to their
customers which became,e their biggest threat. The customers thought that the products sold to
them are cheap and poor in quality. The products were already at very low price and discounts
provided on those low priced products made an doubt in the minds their customers(Datta,
Mukherjee and Jessup, 2015).
 Paradigm
The paradigm innovation of Tesco includes the adoption of mental models which other firms were
adopting. The company also did innovations in its marketing strategies, technological and non
technological strategies. The delivery and innovation of new products by then use of latest
technologies were done(Link and Morrison, 2019). The company provided their customers with the
online facility of ordering the products of their choices which will be delivered within the specific
time mentioned while masking an order. The company made many new marketing innovations
which attracted many new customers towards purchasing the products from them.
P4 Developments in frugal innovation and how it is used in an organisation
Frugal innovation is not just an strategy but it denotes a new set of mind, it is a new
perspective of mind. One can see resource constraint as a liability and another one can see it as an
opportunity and come up with a innovative idea.
 Engage and Iterate
Earlier, R&D was very complex, time-consuming, old techniques were used, causes excess
environmental waste, complex, rigid and were alienating the customers. Tesco have came up with
number of initiatives to tackle with this. The most possible solution would be market focused, agile
R&D, active and immersive involvement of customers, new and innovative ideas and incentives.
Tesco also did a survey on consumers buying behaviour and the purpose of purchase whether it is
for personal use or any other use. Environmental waste is also reduced by coming up with the
products that are required by the customers.
 Flex your Assets
Implementation of new supply chain techniques, purchase management and inventory
management, manufacturing tools can reduce the gap between the supply and demand and will
improve the procurement and distribution. Tesco has implemented green manufacturing, frugal
supply chain, new materials and tools, implemented the SaaS , digitalized the assets. This will help
in assessing client information and other documents.

 Create Sustainable Solution
The environmental sustainability is of great importance for the long term success of the
organization as consumer and government regulators are demanding more eco-friendly products.
The Tesco has taken this as a challenge and made many innovations in the products produced and
sold by them. The company made an effort to come up with an idea towards reducing the
environmental waste by providing bags made from papers and cloths to their customers. Tesco
banned the use of plastic bags completely for a sustainable and safe environment.
 Shape Customer Behaviours
Apart from achieving organizational goals, companies are engaging with the customers to
make them aware of the negative environmental changes and promoting them towards sustainable
living. Many initiatives were made by company to generate this awareness. The company wrote
slogans and quotations on the carry bags, customers were provided with the pamphlets containing
information about the global warming and environmental issues. This was done by motivating,
inspiring and empowering them towards developing a social responsibility towards the nature.
 Co- Create values with Prosumer
Today's consumers are converted in the prosumers more being only a consumer. The company
wants an good business with these prosumers also. The major step taken by Tesco was that to make
a deal in which these prosumers will sell their product to Tesco at the rate which is fixed by the
prosumers. The Tesco made a strategies of doing the co-marketing, co- branding and co-
development. This will lead to the useful categorization of the customers of Tesco(Akcigit and Kerr,
2018).
 Making Innovative Friends
The Tesco made many innovative friends. These friends were the suppliers who were very highly
skilled. These high skilled suppliers helped the company by providing a huge sup-ply chain
throughout the nation. This helped the company to increase their sales. Another innovative friend of
the Tesco was UK government who will help them in doing the imports and exports of their goods
and services without the heavy tax duties imposed on such kinds of activities . The Tesco made a
good friendship with their competitors also by providing them with funds and capitals to run their
businesses. This was done by the competitors but they were doing their business under the name of
Tesco.

LO3
P 5 – Determine the effectiveness of funnel of commercial and development of new product's
application used for innovations and commercialisation
Effectiveness of funnel of commercial are as follows:
 Awareness Section
The company always tries to make their customers more aware about the terms and conditions
written on the goods which is purchased by them. The organisation gives suggestion to their
customer when they purchase the products to understand and read all the policies of the products
and services of the company before purchasing and clears all the things to the customer. If any
customer is having any kind of query or problem, they can directly ask their customer to take help
from the customer service centres. The customers should focus on the what they are purchasing and
what will be the use of the product they are purchasing. The Tesco wants their customers to not pay
for anything which is not of their use.
 Interest Section
The essential customer of tesco are always attracted towards their business and they are more
crucious to gain more knowledge and understanding of the organisation products. The company
made many offers for the customers which gives chances to the people so that they give their
feedbacks and suggestions about the products and services this will improves the products as p[er
the needs of the customer and makes the business effective in the long run.
 Decision Section
Customer are the key to achieve the success of the business so whole market is depend on the
customer requirement. The customer take the decision about which products and services fulfil their
demands. In the markets all the organisations have different competitors. The company will gives
different choices to the customer to select the product as per their needs. So, the tesco made an
effective planning and strategy so that the customer will stick to their product and services . The
trust of the tesco's customer was very good i.e., there were many few chances shifting of the
customer from Tesco but to avoid the risk, Tesco offered a huge product differentiation in the
products sold by them.
 Action Section
It is the last stage of the commercial funnel which determine the variety of customer which
purchases the products and services of the company is bsed on the different strategies of the
marketing (Shevliuga and Olefirenko, 2017). The company launches its product by doing the
market strategies and offer those features which are not available in the market and the customers

demand for it.
The effectiveness of the development of the new products and services
 New values for Customers
The customer will purchase the new product only if the product will have something new and
innovative in it which will meet the expectation of the customers. Any product which is new in the
market must create some value in the eyes of the sellers and buyers. The products needs to be very
different from the other substitute product so that it creates its own identity and value in the
market(Olefirenko and Shevliuga, 2017).
 Improved Society
Many products in the market have innovated and relaunched by their producers in the same market
where they were already having a large amount of customers for them. These products are
renovated because they were not treated as an beneficial for the society. These products were
considered as the products which were damaging the society and they were considered as harmful
for the environment. So the producers innovates the previous version of those products into a
completely new and different version. By doing this their product does not fail in the market and
remain in the demand by their regular and loyal customers.
P 6 - Build an innovation business case for an organisation, including ways to access funding.
Business Case for the Tesco
 Product and Service Name
The new product launched by the Tesco vegan food.
 Describe product and service (what is it?) Provide background.
The organic food is food which has produced by the organic farming. In this the biodiversities are
conserved, the balance in the ecology of the environment is maintained and te resources are
recycled. In this organic food the organization was dealing in the vegetables, fruits, dry fruits,
Meats, Eggs and many other eatables. The organic products of the tesco were germs free and were
contributing a lot in saving the environment.
 Marketing strategies
The sales of the organic food was increased by 15 % because of environment saving marketing
strategies which made high demand of organic food among the customs of the Tesco.
 Customers

The customers of Tesco were very loyal to the brand because of their best quality product offerings
at the lowest prices. The customers found worth of their spendings in the organization.
 Competitors
The competitors of the tesco were Sainsburry, Walmart, Asda, Morrison's, The Co Operative, Aldi,
Waitrose etc. All these competitors were also selling the same products and services but their prices
and quality of the products sold were different.
 Competitive Advantage
SWOT analysis of the Tesco
Strength
It was the biggest grocery store in the world. It was lading the market shares and was growing the
huge number of stores in the market.
Weakness
The organization has failed their operations in the japan and US. The organisation got into fraud in
accounts scandals and there was poor performance in operations in the market.
Opportunities
The tesco was introducing online shopping for their customers. There were many emerging markets
where the organization was doing well.
Threats
The organization was having the threat of “fake farm” in which the customers were misleaded by
fake brand products.
 Risk
The risk of the tesco was faced by the banking and financial services of the organization. The
organization had risk in the crediting money, operating financial activities and in liquidity and
fundings.
 Funding Strategies
The organization was getting a huge fund from the government of the UK. Not only funds, the
organization was also getting reduction in tax policies and import and export of their products.

LO 4
P 7 - Evaluate the variety of factors which is used by the organisation to protect, develop the
understanding and intellectual property of the business.
The tools used by the tesco were as Follows:
 Patent
The organization was having the patent on all the products and services of the organizations. Any
other competing firm was not allowed to copy anything from the Tesco.
 Trademarks
The Tesco is having their own trade mark by which the customers were recognizing the brand. This
trade mark made the identity of the organisation different from other retailing stores of the market.
 Trade Secrete
The formula's and secrets of the organization by which the organization was leading in the market
were kept confidential in the organization.
 Copyrights
The copyrights on the original products produced by the organization were approved by the
government of UK.
CONCLUSION
From the above study it can be concluded that innovation and commercialisation is the development
of the new products and improvement in the existing products and services of the business which
leads to the success and the growth of the business in the future. Innovation increases the sale and
productivity of the business by attracting the large number of customer towards the products and
services of the business. By innovating the goods of the business it will enhance the effective image
and reputation of the brand in the international markets. The organisation muses various tools in the
business which protect the business from the competitors. By applying effective strategies in the
business with innovative products and services increases the profitability of the business. For the
growth and the success of the business in the different conditions of the market effective innovation
of the products and services is needed. New and advanced technology will makes the better
products and services as per the needs and wants of the customer so that the company will satisfy
the customer. The organisation wanted to fulfil the demands of the customer to achieve the
objectives of the business.

REFERENCES
Books and journals
Dutta, S. and Folta, T. B., 2016. A comparison of the effect of angels and venture capitalists on
innovation and value creation. Journal of business venturing, 31(1), pp.39-54.
King, S., 2018. Getting to Know Canada's Natural Product Commercialization Ecosystem. Planta
Medica International Open, 5(S 01), p.COM01.
Liu, H., 2016. Pathway to energy technical innovation and commercialization based on Internet
plus DES. Frontiers in Energy, 10(1), pp.65-78.
Rasli, A. and Kowang, T. O., 2017, November. Universities innovation and technology
commercialization challenges and solutions from the perspectives of Malaysian research
universities. In AIP Conference Proceedings (Vol. 1902, No. 1, p. 020057). AIP Publishing.
Aithal, P.S. and Aithal, S., 2016. Nanotechnology Innovations and Commercialization–
Opportunities, Challenges & Reasons for Delay. International Journal of Engineering and
Manufacturing (IJEM). 6(6). pp.15-25.
Collins, J.M., Reizes, O. and Dempsey, M.K., 2016. Healthcare commercialization programs:
improving the efficiency of translating healthcare innovations from academia into
practice. IEEE journal of translational engineering in health and medicine. 4. pp.1-7.
Link, A.N. and Morrison, L.T., 2019. Estimating the Probability of Commercialization.
In Innovative Activity in Minority-Owned and Women-Owned Business (pp. 63-72).
Springer, Cham.
Datta, A., Mukherjee, D. and Jessup, L., 2015. Understanding commercialization of technological
innovation: taking stock and moving forward. R&d Management. 45(3). pp.215-249.
Olefirenko, O. and Shevliuga, O., 2017. Commercialization of innovations: peculiarities of sales
policy at innovation active enterprise. Innovative Marketing. 2 pp.6-12.
Shevliuga, O. and Olefirenko, O., 2017. Commercialization of innovations: peculiarities of sales
policy at innovation active enterprise. Innovative Marketing. 13(2).
Berggren, E., 2017. Researchers as enablers of commercialization at an entrepreneurial
university. Journal of Management Development. 36(2). pp.217-232.
Sutopo, W., 2019, April. The Roles of Industrial Engineering Education for Promoting Innovations
and Technology Commercialization in the Digital Era. In IOP Conference Series: Materials
Science and Engineering (Vol. 495, No. 1, p. 012001). IOP Publishing.
Akcigit, U. and Kerr, W.R., 2018. Growth through heterogeneous innovations. Journal of Political
Economy. 126(4). pp.1374-1443.
Schumpeter, J.A., 2017. Essays: on entrepreneurs, innovations, business cycles and the evolution of
capitalism. Routledge.
Nagy, D., Schuessler, J. and Dubinsky, A., 2016. Defining and identifying disruptive
innovations. Industrial Marketing Management. 57. pp.119-126.
Pennycook, A. and Makoni, S., 2019. Innovations and Challenges in Applied Linguistics from the
Global South. Routledge.
Walsh, J.P., Lee, Y.N. and Nagaoka, S., 2016. Openness and innovation in the US: Collaboration
form, idea generation and implementation. Research Policy. 45(8). pp.1660-1671.
Deans, R.J and et.al., 2016. Part 5: Unproven cell therapies and the commercialization of cell-based
products. Cytotherapy. 18(1). pp.138-142.