Analysis of Innovation Theories and Strategies for Transfer Travel

This report provides an in-depth analysis of innovation theories, specifically focusing on sustaining and disruptive innovation, and their application within the context of Transfer Travel, a UK-based travel organization. The report defines innovation, highlighting its role in product and service development to meet customer needs and demands. It explores the two main innovation theories, detailing how sustaining innovation enhances existing products for high-end consumers and how disruptive innovation introduces new technologies to impact the market. The report examines the advantages of each approach, including increased profitability, cost reduction, and market expansion, and discusses methods for implementing sustaining innovation, such as sentiment monitoring, product offerings, and communication channels. Furthermore, it traces Transfer Travel's historical development and the adoption of these innovation strategies, emphasizing the need for market analysis and financial investments to stay competitive and meet evolving customer expectations. The report concludes by highlighting the importance of innovation in the travel industry and the impact of both innovation theories on Transfer Travel's business model.

INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
Types of Innovation theories...........................................................................................................1
Transfer travels historical development and the role of Disruptive Innovation and sustaining
innovation :......................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation can be defined as the process of translating an idea into finished product or
service in order to increase their value. Innovative ideas are replicable that are developed in a
economical way. The main agenda of innovation is to develop new product that satisfy the need
as well as demand of customers. It undertakes effective information, imagination that lead
different resources into formulating an effective idea that are useful to develop a new product.
The organisation chosen for present assignment is Transfer travel is a medium organisation
which is operating their business in UK (Tidd and Bessant, 2018). They allow sellers to list
unplanned tours that includes flight tickets, hotel reservations and package holidays. Moreover
they provides travel services such as accommodation, flight, rail-coach etc. In this task different
innovation theories with its whole details will be mention in this report. Further they are written
to understand the all development stage that are related with organisation.
Types of Innovation theories
In present scenario innovation is the essential need of all organisation as it helps them to
sustain in the market for longer period. Innovation works by developing existing product of the
organisation which governs that they work with to increase the value in its product or services.
Moreover it helps organisation to gain an competitive advantage in the industry. In this task two
theories of innovation are mention that helps to understand the process of innovation.
Sustaining innovation
A sustaining innovation accomplish their objective by targeting high end consumer. It
provides products that are able to perform better as compare to the productivity of previous
product (Patti, Yanes and Siuzdak, 2012). This innovation works in a systematic process due to
which there is increase in their performance on day to day basis. It results that it helps
organisation or companies to improve their performance at peak level. Main motive of sustaining
innovation is to bring positive results by creating a unique update in their existing product.
In present scenario travel industry is growing with rapid face which determines that there
is a huge scope in market. Apart from this it helps established organisation to gain competitive
advantage in the organisation because they are already aware about the market conditions. The
major benefit that is provided by sustainable innovation is that they helps an organisation to sell
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their products with high profits. As existing organisation are more motivated to capture high area
of market by giving tough competitions to its rivals. While on the other hand they had enough
resources that help them to develop more products.
Advantages of sustaining innovation
Their are several types of benefits are provided by sustainable innovation when they are
implemented by the organisation. First benefits which is achieved by organisation is to earn more
amount of profits as innovation increases the value of their products (Owen and et. al., 2013). It
results that there is increase in the demand of their products due to which more revenue is
generated by them. The another benefit which is gained by sustainable innovation is that
company spend less on the promotion of product. So they are able to cut their cost that increases
their unnecessary expenses. Some giant companies such as apple, amazon etc. that uses
sustainable innovation in order to wide their market area by increasing their profits also. Further
this organisation also stated that they it improves their productivity due to which there is increase
in market awareness of their products.
Some methods of sustaining innovation
Lot of ideas are developed by sustaining innovation that helps them to increase the value
of their products. But to implement them effectively some methods are present that ensure the
development of product and its profits. In this task ways to execute sustainable innovation are
mention as follow:
Sentiment monitoring- It is an another effective system that is used to collect data which
leads to contain useful information that brings positive results for the organisation. In this
process sentiment works as an analysis that allow different brands to monitor their regular
performance (Jensen and et. al., 2016). So it is easy to for them to identify the loopholes that
generates barrier in achieving their goals or targets.
Product offering- In order to get more number of ideas it is essential for organisation to
listen their customers. It determines that it is mandatory for organisation to listen the feedback
and review of their product. This helps them to improve their product by adopting the essential
changes that are suggested by customers.
Communication channel- The channel defines the way by which an organisation interact
with their stakeholders. Along with this it helps them to approach their customers within
effective way. Like according to present market conditions social media, phones, online portals
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are the effective way to communicate with customers and investors. Where as it also work for
them as an open channel that helps to provides regular feedback of customers.
Customer service or experience- This part covers many areas that are useful to make
changes in terms to achieve their objectives by implementing sustainable changes. So this tools
helps them to make changes that are useful to identify changes in order to make modifications
that generates more value in their products (Govindarajan and Euchner, 2012). Example- Most of
the present customers will not bother to make complaint that are related with product. As it is
easy for them to post the problem on social media so it is broadcast in overall world.
Disruptive innovation
Disruptive innovation is defined as a technology whose applicability directly impact or
affect on the market or industry. The factors which are included in disruptive innovation are
internet, innovation, market environment etc. Main agenda behind disruptive innovation is to
implement new and unique technology that directly impacts on function of the organisation. It
determines that they directly impacts on sale of organisation product by creating into market and
value for network. An important note that is needed to consider in the technology aspect is
disruptive innovation. This work as business-model for organisation that enables and generates
disruptive effect in the products.
Disruption is a process in which a smaller organisation that does not enough resources
gain strength by which they are able to challenge the current business rivals. The main motive
for disruption innovation is to improve their product or services for a specific segment of
customers (Freeman, 2013). In determines that they focus towards a particular group of
customers so they are able to fulfil their needs in most effective way. Disruption innovation helps
them to target those customers which provides them high profits.
Advantages of disruption innovation
Innovation works as an evolutionary process by which new goods and services replaces
the established competitors by increasing the accessibility and affordability of their products. It
helps company to expand their market area by making innovation in their present products and
services. The current operations are able to exposed different areas that help to identify different
area of process which help to increase their structure. For this they implement effective
operations by identifying different process and structural environment.
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Types of disruption innovation
Low end disruption- It involves a process that is used to execute new operation and
financial approach by making effective combination of them. Main intention of low end
disruption is to reduce their gross profits. It is the easy by which organisation not focus on new
markets but they focus on low cost models (Etzkowitz and Zhou, 2017).
New market disruptions- It involves those products that are affordable by all types of
customers. Disruption innovation formulate products that are is to handle and help to fulfil the
need of customers. Example- Tours and travel organisation offers whole package of holidays to
customers that undertakes tickets, hotels booking, vehicles, accommodation and leisure in order
to ensure customer loyalty.
Hybrid disruptions- It involves both approaches by which determines that it includes new
market and low price technique in order to achieve their goal specifically. Travel-lodge as well
ad travel transfer both included this hybrid disruptions that attract more number of people to
consume their services.
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Transfer travels historical development and the role of Disruptive Innovation
and sustaining innovation :
Innovation is characterized as the introduction of fresh new or different things in the
market. As competition in the market increases day by day so company needs to invent new
products and innovation to cope up with existing competition in the market. There are two
innovation theories followed by the transfer travel company to grab the market share as well as
to increase its productivity that are disruptive theory and sustainable innovation. In disruptive
innovation creating new market and network where as sustainable development is done to
improve new product. It is very necessary to implement these theories in effective manner after
analysing its market properly. In context to transfertravel.com, it is a well known organisation in
travel and tourism sector which provide best services to the customers. For organisation, it is
necessary to bring new innovation at the different time period to survive in the market and to
maintain its brand image (Edquist, 2013). Many innovation theories are used by historical
development to invent new changes and provide value to the customers. At past days, customers
are regularly ask with the service provider and different dealers to provide total experience of a
visit to the customers. But, by the help of new innovation company can provide all the
experience below the on roof. It is very advantageous for the organisation to build its company
image as well as to provide most of the services under the one roof. All organisation need to
analyse its market very effectively so that company find out the actual needs and demand of the
customers. Whereas Disruptive innovation strategy is make effective communication between
established enterprise and newly developed. This helps them to maintain sustain innovation
strategy that helps to increase their market share by attracting more number of potential
customers. Main function that is performed by disruption strategy is make new users that are not
subjective towards a singular product.
In order to implement innovation in an effective manner it is essential for the organisation
to adopt important changes. Therefore organisation required sufficient working capital for this
they approach crowdfunding and crowd sourcing. This helps to increase their revenue with 10%..
Transfer travel generates uniqueness in their services through innovation but for this they
required huge investment. It comes in organisation through approaching banks, investor, finance
organisation etc. They perform the role to generate or make transactions through offline and
online methods. Further in present scenario or marketing conditions app and card funding are the
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best source to raise funds from investor. As it helps them to raise fund within shorter time period
in respect to app funding this refers to make digital transactions. While card funding is useful to
make secure payments whether credit or debit.
Since few decades the company is world wide known for their services and quality. The
interest of masses have increased within this period of time regarding the tourism sectors. During
the past organisation was providing various services to their customers in order to match with
needs of the hotel. This company was working on the outdated technology such as use of
telegraph and telephone to communicate with the customers coming to their hotel (Aghion, Van
Reenen and Zingales, 2013). As an emerging trend more and more requirement of public, the
company is now working on the innovation factor for providing their customers with the current
technologies and updated services and has shifted their business from manual processor to the
automatic one. Transfer travel has focused on the two theories of innovation such as sustaining
innovation and disruptive innovation.
Sustaining innovation is the one which deals with updating the existing process and
products. This would help the business of Transfer travels in modifying their services which are
already in existence as this would reduce their cost of producing new product and provide them
the benefits of proper and optimum utilisation of their existing resources.
Disruptive innovation is the one which focuses on creating a new product for the market
by lowering its price at initial level for the customers. This would also help the business of
transfer travel by providing them the opportunity to compete in the market by adopting new and
advance technology.
Among these both innovation theory the company will mainly adopt the theory of disruptive as
this theory provides company with certain benefits to increase their business these benefits are as
follows :
 By adopting the theory of disruptive innovation the company like Transfer travel can
expand their business in the market by introducing new products or existing products.
This will help them to expand their business at a greater platform and even it is
beneficial in achieving the targets of an organisation (Amit and Zott, 2012).
 This will help the business of Transfer travel in establishing a culture of learning in their
business as this theory involves adopting new changes, new technologies and new
process of providing services to their customers. Here, customers will get the best form
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of services whenever they will get connected with the company. Even they will have the
chance to take feedbacks or reviews from customers that will help to introduce some of
the additional services and facilities.
 This will provide the business an opportunity to grown in their platform and in travel
industry. In addition, they will be able to get the chance to explore their business at
different level because there will be the chances to expand their business at greater
platform (Berry and Berry, 2018).
 This will help the business in identifying the areas of urgency and are important for the
improvement of their travel business. Also, it will help to take some of the important
decision for the company through which suitable changes can be done.
 By adoption of this theory, the business can also overshoot their customers needs and
wants at first accordingly. This will also help customer to connect with transfer travel as
they are being capable of delivering the services which their customers want from them.

Disruptive versus sustaining innovation.
Disruptive innovation Sustaining innovation
Disruptive innovation involves exploring new
market segment by launching new products
and services
Sustaining innovation works well in the
existing market.
In disruptive innovation the problems are not
well defined and understood.
Sustaining innovation is the one where the
problems are understood and are well defined
in nature.
For disruptive innovation the market is
unpredictable as the company can't predict in
advance about the market situation whether the
product which they are trying to launch will be
able to survive or not.
Sustaining innovation is the one in which
market is predictable as the company is
modifying their products or services which are
already in existence .
In disruptive innovation the use of traditional
methods fails .
In sustaining innovation the traditional method
of doing business is sufficient.
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Sustaining innovation is a factor that is implemented by transfer travel in its services for
attracting and encouraging large number of customer for purchasing their products or services.
However, they target niche market of developing countries through dividing their work on partial
basis. Whereas with the execution of disruptive innovation administration of Transfer travel
target the low value customer for their services such as travel and hotel booking, tours package
etc.
In addition, transfer travel has the huge responsibilities as they have to expand their
business at greater platform which they have been performing. Here, transfers travel after
adopting disruptive innovation will get the chance to be creative and innovative. They will have
the option to perform better within the market due to which they will have more chances to
achieve their goals and targets in best possible manner.
Future pathway will give an idea that how they can cover higher amount of market share.
They will get the idea that how they can promote so that they can compete with other some of
the well-known travel and tour company (see Appendix 1 for transfer travel Business Model
Canvas). As, company will cover different area so they will have required to add on the number
of workers and employee's through which implementation can be done on all of the taken
decisions. The appendices represent the different ways through which organisation make current
needs as well as their future needs. Like transfer travel operates parental business of ticket
booking but for formulating a large customer base they started to operate business's in several
fields that are inter-related with tours and travel.
Future pathway development will be crucial in taking the any of the business decisions.
Here, it will have direct impact on the profitability of the business because Disruptive innovation
will help them to take some of the suitable decision through which it will be easy for company to
earn higher amount of profit. Although tradition cultures will not be able to followed in some of
the situation but still there will be chances that company will deliver the service which their
customers want from them. In addition, it can be said that company will have the option to
enhance their reputation within the market where customers base will automatically increase. In
short, this will help to grow the business like transfer travel where they have to deal with
delivering the services to their customers.
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CONCLUSION
On the basis of above mentioned study it can be concluded that to sustain in the
competitive era organisation must focus on the factor of innovation over a period of time.
Implementation of innovation in the organisation will not only bring advancement in their
process but will also enable them to maintain a position of superiority in the market place.
Continuous innovation in the organisation will also help the business of Transfer travel to
provide full satisfaction to their ultimate customers. Disruptive innovation are important and
plays a vital role in the organisation as it helps the organisation in capturing the large market area
by introducing new products and services in the market. This innovation not only support in
covering market but also helps the organisation to focus on their past performance which would
help in predicting about the future so that the business can enhance their performance and
growth.
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Appendices
Business Canvas model
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