Innovation Management Report: Blue Ocean Strategy for Made.com

This report provides an in-depth analysis of innovation management, focusing on the application of the Blue Ocean Strategy by Made.com. It begins with an introduction to innovation management and its significance for organizations, followed by a detailed exploration of the Blue Ocean Strategy theory, including its principles such as reconstructing market boundaries, focusing on the big picture, reaching beyond existing demands, getting the strategic sequence right, overcoming organizational hurdles, and building execution into the strategy. The report then examines the processes involved in implementing the Blue Ocean Strategy, including choosing the right place, clear thinking, analyzing limitations, reconstructing market boundaries, selecting moves, process implementation, and analysis. Furthermore, it evaluates the benefits and limitations of the Blue Ocean Strategy, highlighting its value innovation, fundamental transformation, and emphasis on optimum resource utilization while acknowledging its complexity and challenges in affordability. The report concludes with a brief overview of Made.com's background and its application of innovation management principles.

MANAGING INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Innovation Theory.......................................................................................................................3
Company Background.................................................................................................................8
Application of Innovation..........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation management is too necessary task for an organisation. Currently many
businesses or companies are investing huge fund for properly managing their innovation.
Without innovation management, an organisation can’t produce some new products and services.
Innovation management always give opportunity to a company to innovate that kind of product
which no other company is currently is providing in the market. Currently each successful
company is focusing on properly managing innovation aspect in their business environment
through different innovation theories. This report discusses the innovation management of
Made.com. This is company is able to tale huge advantages from Blue Ocean Strategy. It is an
innovation management theory which give opportunity to every business or company to properly
conduct each operation within their innovation management. This theory or strategy includes
various way which will help to made.com to for gaining effective results from their innovation
functions. According to blue ocean strategy, a company need to develop some tactics or
techniques to innovate a new productive thing.
MAIN BODY
Innovation Theory
Innovation is defined as adopting new technological development and other advancement
in process that can support organisation in delivering more efficient services and operations
(Arciénaga Morales and et.al., 2018). Innovation is considered as new inclusion in form of
technique and process to improve the operational efficiency. Management of Made.com can
apply the Blue Ocean Strategy for applying innovation in the organisation.
Blue Ocean Strategy Theory
Blue ocean strategy is defined as developing products and services of company with the
use of new processes and techniques. This strategical tool is more like a process of developing
products and services in such a way that the organisation can create a unique space for the
growth and development in the target market (Brem and Viardot, 2017). This theory creates

emphasis on creating revolution with the innovative idea and technique in the target market.
Innovation play crucial role in improving growth potential not just of the organisation but also of
the entire sector in the business environment many times due to a specific innovation and
techniques the growth of the entire sector take a certain hike in the business environment. Blue
ocean strategy put emphasis on creating such massive development in the respective business
sector.
Principle of Blue Ocean Strategy
Blue ocean strategy is a strategical tool use to entertain new business development with
the support of new innovative ideas and techniques. Following principles are associated with the
Blue Ocean Strategy that can be projected in the following ways.
Reconstruct market boundaries: Reconstruct the market boundaries are among the key
principle on which Blue Ocean Strategy theory works. In order to innovate practices and theories
applies to operate functional role it s crucial to reconstruct all the existing boundaries sets earlier.
Innovation is considered as thinking out of the box about the products and services currently
catering by the corporate organisation (Chesbrough, Lettl and Ritter, 2018). Reconstruct market
boundaries is about to stretch the existing limits of operating functional activities. This principle
emphasis on thinking in a wider range of creativity so that organisation can create something
innovative and extra ordinary that can improve either the operational efficiency of a certain
operation or the utility of the final product company produce. Innovation play an effective role in
sustaining or even improving the growth potential of the entire market sector as it enables
corporate houses to cope up with the changing expectations of the target customers of the
company. As per all the above facts stated reconstructing the set market boundaries is an
effective tool supports in innovating new idea or process.
Focus on the big picture, not the number: Blue Ocean Strategy also involve focusing on the
big or vital picture in order to innovate. Innovation looks and effective and exciting process but
along with all the luxury innovation cater organisation needs to involved with huge amount of
financial investment in order to conduct the innovation. It is crucial to focus on the big picture
comes after the successful innovation process rather than focusing on the numbers. Innovation
also involve mergers with other organisation houses in respect to different elements involve in

the innovation process (Coccia, 2017). Organisation must focuses on the big pictures rather
highlighting about the specific numbers. All the big corporate houses invest huge financial
resources in order to generate any innovative idea and technique which also involves establishing
strategical partnerships with other corporate houses or entities to meet all the essentials requires
in innovation.
Reach beyond existing demands: This is the third principle involve in the Blue Ocean Strategy
theory of innovation. This principle also play crucial role in developing innovation as per the
guidance of this theory. Innovation is all about creating new possibilities and opportunities with
the creative and new idea or technique. All the big and successful innovation happened in the
past has provided benefits to the entire society and business environment not just too specific
segment of market. In order to develop any innovative idea or technique or products organisation
must give emphasis on reaching beyond the existing market demands or only catering to existing
customer base of company with the innovative idea and technique. This principle play crucial
role in expanding the target area of the innovation which also further causes to huge commercial
development.
Get the strategic sequence right: Getting the strategic sequence right is the fourth principle
work behind the successful innovation. This principle of innovation focuses on establishing or
framing a proper sequence of action in order to generate the utmost advantage from the
innovation and development (Colombo and et.al., 2017). Sequence of strategies not just guide in
operating all functional activities effectively for the innovation but also to get it commercial
successes in the market sequence play crucial role.
Overcome key organisational hurdles: Overcoming organisation hurdle is also an effective
action organisation must take in order to build an innovative idea or technique. This is the fifth
principle work behind the innovation. Hurdles are always a part of any operational activity
conducted by business organisation. Innovation consisted with plenty of hurdles corporate
houses needs to face sue to many reasons (Fidel, Schlesinger and Emilo, 2018). The biggest
reason behind organisation facing hurdles in process of innovation is due to uncertainty of the
outcomes form the entire efforts put behind the innovation. This is among the crucial principle
which supports organisation in moving forward constantly in order to generate successful
innovation. Organisation must overcome all barriers and hurdles to build a successful innovation.

Build execution into strategy: This is the last principle involve in the blue ocean strategy of
innovation. This principle involves building execution in strategic form. Innovation is a very
complex process as it involve certainties at each stage involve in the process. Organisation must
make a proper strategy to meet all aspects of the innovation process. Strategies play crucial role
in delivering timely actions along with it also supports in facing all the hurdles involved in the
innovation.
All the above principles play crucial role in innovation.
Process of innovation
Following processes are associated with the Blue Ocean Strategy that can be summarised
in the following ways.
Choosing right place: Innovation is considered as the complex process as there is not any
proper technique already established to operate functional activities involved in the innovation
(Lilja and et.al., 2017). In order to make successful innovation strategies is very crucial and all
the human resources involved in the innovation process must ensure the right place and process
to implement all stages involved in innovation effectively.
Clear thinking: Innovation is a complex process so to implement the innovation successfully it
is crucial to keep the thinking clear. Clear thinking play crucial role as it guides in all complex
situation arises in the process of innovation. Clear thinking also support in framing proper
strategies and also to implement the same as well.
Analyse limitations: Every process has some limitations. It is crucial to assess all the limitations
involved in the innovation process. Analysing limitations will play crucial role in forming proper
strategies and process for conducing innovation.
Reconstructing market boundaries: Reconstruction of market boundaries is also a crucial step
involve in innovation (Meyer-Brötz and et.al., 2018). Blue ocean strategy suggests that it is
crucial tom reconstruct the market boundaries already established in order to make an effective
innovation. Reconstructing market boundaries involve crossing the already established
boundaries to innovate.

Selection of move: Move selection is considered as the crucial step involve in the innovation as
per the blue ocean strategy. Based on the all the strategies and processes framed in initial stages
of innovation all innovators must select the proper and specific move to implement the
innovation process. This step involves analysing all the suitable strategies and techniques and
based on the convenience most appropriate strategy and process must be selected.
Process implementation: Process implementation is a crucial stage involve in the innovation
process. Based on the move selection stage this step is implemented which involves
implementing the selected strategy and process efficiently (Nechaev, Bovkun and Zakharov,
2017). All the outcomes of the process will reflect the efforts put in this stage. Process
implementation also involves making suitable developments in the processes to improve the
outcomes of the earlier processes.
Analysis: Analysis is the last step involve in the innovation process. Based on the
implementation and outcomes of all the earlier stages this step implemented. It involves
analysing all the steps and strategies associated with the process of innovation. Analysis also
involves analysing about the outcomes of the processes.
Blue ocean strategy involves all the above stages to implement the innovation process.
Evaluation of theory
Evaluation of theory emphasis on analysing about the benefits and limitation of the blue
ocean strategy.
Benefits of the Blue Ocean Strategies
Following benefits are associated with the blue ocean strategy.
Value innovation: Blue ocean strategy value innovation and creativity. Valuing innovation
involve giving attention to each creative idea or technique organisation and innovators engaged
with. Many times even big innovation is the outcomes of the small idea’s. Blue ocean strategy
value all such creative ideas and techniques.
Fundamental transformation: Blue ocean strategy emphasis on the fundamental
transformation in the mindset of people. Innovation is nothing but a mindset that causes to

further innovation and development. This strategical tool enables organisation to focus on the
right mindset that can support innovation.
Emphasis on optimum resource utilisation: Blue ocean strategy also focuses on the cost
involved in delivering innovation (Ritala and Almpanopoulou, 2017). This strategical tool
focuses on taking right steps that can supports organisations in utilising all resources at optimum
level.
All the above strengths are considered as the prime strength attached with the blue ocean
strategy.
Limitations of blue ocean strategy
Following limitations are associated with the blue ocean strategy that can be summarised
in the following manner.
Complex process: Blue ocean strategy is more like a complex process of innovation as this
strategical tool do not guide properly about the innovation and development. Stages involve in
the strategy are also unclear that also causes too many confusions in mind of organisation
management.
Challenge affordability: This strategical tool challenges affordability. Cost affordability do not
emphasis much in this strategical tool (Smale, 2016). Resources are limited in nature and this
strategical tool does not focus on the limitations of the financial resources of the organisation.
Both the limitations are considered as the major limitations involve in blue ocean
strategy.
Company Background
Made.com is very popular furniture and homewares retail company which sells its
products and services through both modes online and offline. Company’s official site is
www.made.com, where it always sells its most of attractive furniture and homewares. Currently
it has many showrooms also in different European markets. It has very large customer base in
furniture industry. Most people in the United Kingdom are really like to buy furniture and
homewares from this company, because offers a wide range designable furniture and homewares.

The made.com has very common business model, because it always charges amount from
customers only on the basis of value of a product. Currently it has 590 number of employees who
day or night working for the company for increasing company’s profit in the furniture market.
The made.com has a very effective innovation team (Ritala and Almpanopoulou, 2017). That’s
why this company is able to produce different attractive furniture and homewares. Most people
within European countries too like to buy some fancy furniture and homewares for making their
homes beautiful and attractive. This company is basically help to people for creating a fancy
home. Made.com produces products for each sector, like; restaurants, schools, colleges,
government offices, pubs, bars, businesses, corporate offices. People who relate these all sectors
are main customers of this company, because it has wide range of different furniture and
homewares.
The made.com company has furniture for each purpose. For example; if any person wants
to buy a study table, then it can easily buy that table from official site and authorised stores of
this company. On the other hand, person who want to buy a fancy sofa, then it will also able to
easily buy that sofa from the company. Its business model has some features as well. For
example; company produces different products for different age groups as well. It provides
premium range of products to those people who comes from high income groups (Randhawa,
Wilden and Hohberger, 2016). On the other hand, people who comes from low income groups
also are able to easily buy furniture and homewares from company. Reason is, made.com
produces some affordable products and services also for low income groups.
The made.com was founded in March 2010 by three people Ning Li, Julien Callede,
Chloe Macintosh. From establishment to date, this company is always focusing on using high
innovation in their daily operations. Innovation aspect currently plays great role to the company,
because it is very successful in innovating attractive furniture and homewares. Firstly, it has
started their business operations in the United Kingdom, but from business opening to date it is
continuously expanding their business operations in different countries. Currently it has many
stores in different locations, like; United Kingdom, France, Germany, Ireland, Spain,
Switzerland, Austria, etc. Founders of company always believes in properly managing
innovation factor in their business operations. Made.com’ one founder called Ning li has said in

its one interview that, blue ocean strategy of innovation management gives opportunity to
company for producing some attractive furniture and homewares.
When company has established its business, on that initial time period of made.com it
was face very tough competition in the furniture and homewares industry (Lilja and et.al., 2017).
Reason is, there was very high competition in this particular industry. Then it has gained very
high success in this industry because of its systematic blue ocean strategy of innovation
management. Currently new entrants are continuously coming in this furniture and homewares
industry, in which it can easily deal with these competitors with support of its blue ocean
strategy of innovation management. It always tries to innovate a specific design to their products
and services. That’s why blue ocean strategy of innovation management has played great role for
the made.com in its business development process.
Application of Innovation
Management of Made. Com can utilise the concepts provided in Blue Ocean Strategy and
focus on the innovation. Company can emphasis on the following ideas in order to innovate its
services and product qualities.
Digital assistance: Management of Made.com can utilise the technique of digital assistance that
can support customers in choosing right products based on the needs and requirements (Sivula
and Kantola, 2016). Digital assistance will improve the shopping experience of all customers of
company as it will come up with the current needs of the customers along with the future
expected requirements of customers. This is an effective technique as it provides new dimensions
to the shopping experiences of the customers. Digital assistance suggest only such products that
best feet to the needs and wants of the customers which also further causes to time saving
techniques for all the customers and shop lovers. This is a new and attractive shopping technique
which will also improve the brand image of the company in the target market. For example;
Google has launched recently Google Assistant that has received such a huge success in the
market. Management of Made.com Company can also achieve huge commercial success with the
launch of this innovative idea.
Design portfolio: Design portfolio is also an effective and innovative idea management of
Made.com can utilise. Design portfolio involves presenting all the designs offer by company in a

single place. This technique will guide customers in selecting the most appropriate design that
can best meet up the needs and requirements of the customers (Zizlavsky, 2016). Design
portfolio will provide wide range of options to the customers of company which can also support
to the choices of all potential customers of company. Company can also feed an option of
suggesting designs as a part of design portfolio. This will allow customers to order the best
design products based on the choices of customers. This strategical tool will support the effective
shopping experience of all potential customers of company.
Sample portfolio of material: Company management of Made.com can also add the feature of
sample portfolio of material used in producing final products. Recently due to numerous
shopping options customers has become much more aware in respect to quality shopping.
Inclusion of this feature on the website of the Made.com will allow company management to
show case all the materials use in developing final products of the company. This feature will
improve the brand knowledge and brand awareness of the company in its entire target
customer’s. This feature will also improve the customer loyalty as customer’s will get the proper
guidance about the quality of material consume in delivering the expected products of the
company.
Customisation technique: Customisation is also an effective technique company management
at Made.com can use. This technique will enable customers to place the order as per the needs
and demands of the customers. This feature will involve customer’s to convey all the needs and
demands related to products and company will deliver the same products based on the conveyed
needs by customer’s. This is an effective feature which will provide effective hike to company’s
sales turnover in the market. In order to expand the profitability and sales potential company
management needs to cope up with the expectations and requirements of the target customer’s.
This features will support company management in delivering the desired products along with it
will also enables company management to analysis about the expectations of the potential
customers of company.
All the above strategies can be implemented in order to improve the profitability of the
company.

CONCLUSION
It can be concluded that blue ocean strategy plays great role to the made.com company in
its innovation management. Currently the company can easily innovate different designable
furniture and homewares. Proper management of innovation is too necessary task to this
company, because with innovation management company is able to gain huge competitive
advantage in respective industry. From establishment to date, there is blue ocean strategy of
innovation management has played very productive role to this company, because currently it
has wide range of furniture and homewares. It is continuously attracting new customers towards
own brand year by year, because each year made.com presents a new range of furniture and
homewares. The company still has great opportunity to increase its profit in the market through
blue ocean strategy of innovation management.