Innovation Strategies and Development: Just Eat Limited Report

This report comprehensively analyzes the innovation strategies of Just Eat Limited, focusing on the application of disruptive innovation theory. The report begins with an introduction to innovation in business and the importance of new ideas, better processing, and increased profitability, including the application of theories like blue ocean strategy and disruptive innovation. The main body of the report delves into disruptive innovation theory, including its definition, principles, and process, as well as evaluating its benefits and limitations. The report then provides a historical development context of Just Eat Limited, detailing its business model, acquisitions, and financial performance. Finally, the report applies the innovation theory to recommend possible future development pathways for Just Eat, considering market trends and customer needs. The report also discusses the business model of Just Eat and its historical acquisitions. The report concludes with a summary of the findings and recommendations for Just Eat's future innovation strategies.

Managing Innovation
1

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Innovation Theory.......................................................................................................................3
Historical development context of Just Eat Limited....................................................................7
Future development context of Just Eat Limited.........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12
2

INTRODUCTION
The report is about the innovation in the business, the innovation in the business is important
for the achieving the success. The innovation is used to exploit the new ideas in the business for
the better processing, bringing new products and services to market and increasing the
profitability. Innovation can be a plus point in the areas where the competition is increased due
to new technologies. The report consists of the strategies such as blue ocean strategy and
disruptive innovation theory.
The blue ocean theory is used by the organization to use low cost for opening new market
space and creating demands that are new to the market. This theory is used for the making
irrelevant competition in the market. The theory is based on the fact that the structure and the
boundaries can be reconstructed by the industry managers (Buisson and et.al., 2010).
The Harvard professor Clayton Christensen derived the destructive innovation theory. In
disruptive innovation theory, the phenomenon is used in which the existing market in
transformed by introducing the convenience, accessibility, simplicity and affordability in the
market where the high cost is the complication. The idea of the theory can be unattractive to the
industry manager but it redefines the industry completely.
MAIN BODY
Innovation Theory
Disruptive Innovation Theory
Definition – Disruptive Innovation theory is the innovation which values network and creates
new market by disrupting the existing market and value network this theory helps in creating the
new market which assists in analysing the market trends which are being functional and can be
utilized for the work which is to be done by the company. Disruptive theory also helps in
identifying the new opportunities in the market and changing the previous patterns of processes
to the newer ones (Hopp and et.al., 2018).
This theory is suitable for the businesses which needs growth and efficiency for their future
processes. Various innovative techniques are identified in the business by applying this theory.
Through this, different value chain is created which helps in creating the business idea to be
more effective. New strategies are formed by disrupting the old ones. Businesses grow with the
help of new innovative techniques which needs a step ahead of the older forms. This theory also
3

produces entrepreneurs involved in the business on large scale but start from the initial steps
which are required in the business. Therefore, this theory helps in analysing the major loopholes
and the changes which are to be done in the business and the innovations which are to be done
by improving the methods of business and functions from older to newer ones.
Principles – There are eight principles of Disruptive Innovation Theory which are explained as
below –
1. Letting go of the past - This principle of disruptive innovation theory denotes that the past
performance should be evaluated but should not be considered and taken in any further
reference while changing the patterns of business.
2. Encourage Courage – New ways and patterns should be considered as priority this
should be the encouragement factor both for the employees and the company itself. This
principle directly focuses on expressing ideas through courage (Leavy, 2018).
3. Embrace Failure - While initiating any business, ideas should be nurtured by adjusting
and trying them so that they could reap in better aspects. Therefore, failure should be
thought of essential nourishment to reach success.
4. Do the opposite – This principle says to do opposite of what other businesses are doing.
Through this, innovative techniques of work will come out and pushing of boundaries
will be done with expectations fostering work.
5. Imagine the possibilities - For reinventing business, imagination will help in getting reach
goals. This principle is helpful for the new business and older ones to imagine the success
and work towards it (Aminoff and et.al., 2017).
6. Put yourself out of business – The companies and businesses are unwilling to initiate and
focus on the personal lives of employees. Therefore, this principle helps in making
businesses realize the same at that point.
7. Reject Limits – In business, limits should be rejected as they are stoppage to new ideas
and innovations towards a progressive way. This principle helps in unleashing all those
boundaries which stops from creating something new in business.
8. Aim Beyond - This principle initiates the aspect to aim beyond and to not look at the past
while growing in the business. This will help in gaining success through effective and
efficient paths.
4

Process – The process of disruptive innovation theory is explained as –
1. Observe customer needs and industry trends - This is the major aspect which the process
explains. To observe the customer needs and wants in the market is essential as through
this the organization would be able to work upon the growth factors effectively and
efficiently. This step also helps in keeping an eye on the market trends by understanding
the current and future requirements of the consumers (Petzold and et.al., 2019). This also
helps the company to analyze new entrants and competitors in the market.
2. Focus on Business Model Innovation - Business model innovation changes the innovation
techniques which are being prolonged since the business has been started. By focusing on
the new business models there are changes which take place in the process of disruptive
innovation. With the help of business model new areas of ideas and innovation can be
defined which helps in analyzing the further process of the growth to flourish along with
the business. Therefore, focus towards innovation should not be diverted.
3. Don’t count on breaking through right way - Disruptive innovation should be approached
through an iterative manner. Great opportunities in business take time to innovate
something new to the business (Millar and et.al., 2018). But in the process of uncovering
disruptive opportunities, moving towards the steps of growth and how to change the
process of business and its functions are helpful in acknowledging the future areas of
success effectively and efficiently. This helps business to become more on terms of
keeping the latest trends and updates on hand.
Evaluation (Benefits) –
 Disruptive innovation has this benefit of involving new technology and sometimes uses
new business model.
 The innovation happens slowly at first but as soon as it takes the grip it grows
exponentially (Ab Rahman and et.al., 2017).
 It disrupts the existing market and creates the new market segment in the existing market.
 Disruptive innovation creates the new processes which help in analyzing the ways
through which growth is possible in the business.
5

 Through the innovative techniques in business, the theory helps in assisting with new
market trends and evolution takes place through that in the company.
 This theory also recruits forward-thinking leaders from diverse array of backgrounds.
 It gives rise to new opportunities and ideas which help the business ponder over the
techniques through which company can flourish.
Therefore, these are some of the benefits of disruptive innovation which helps the business and
the company to grow on the scale of success and keeps them updated towards the new
technologies and trends which have been introduced in the market this has been one of the major
factor in innovation as through it, pathway for success is being guaranteed. The niche market is
also looked upon through the process of how that is significant and will help the business grow
effectively and efficiently. Various opportunities are available for the companies and the
businesses to take on the charge of the new ways through which they can lead the work and
change from their older process to the newer ones.
Evaluation (Limitations) –
 Disruptive innovation requires a separate strategy process. This means that time should
not be wasted in analyzing what should be done and what should not be. The innovation
process must be emergent so that there is no difficulty and problems in the current
process which is running (Droege and et.al., 2017). This is the biggest limitation of the
disruptive innovation. Hence, should be corrected and rectified as it not only affects
business but also will create problem in changing new patterns and techniques when
needed.
 There is one big limitation which says that the disruptive innovation designs the services
and products that address current behavior rather they should address the future
behavioral patterns of the business and the trends which will take place in the near future.
This can be done by keeping an eye on the future market trends which are to take place
and which changes the current scenario of the business. Customer needs and wants
should be considered and the business should exactly provide as per their requirement.
 Disruptive innovation cannot achieve big profits at faster pace due to their nature. This
creates the biggest limitation towards the business which the company posses (Reinhardt
6

and et.al., 2018). Therefore, it should be rectified and corrected that the business should
incur patience and not be impatient to deliver the profits to the company and share it in
the market structure. The company or organization should ponder and focus on what is
prior to the business and its growth. This will make the company reach success easily.
Historical development context of Just Eat Limited
Just Eat Limited is an online food ordering industry that was founded in 2001. This industry act
as the intermediate between the customers and the take away food outlets that is independent.
The industry is headquartered in London, England. The industry is operated in thirteen different
countries though out globally that includes Asia, Europe, America and Oceania. The industry
provide the customers with platforms that provide services like enabling them to find the nearby
takeaway restaurants, placing their orders and online payment. The customers can also choose
from the options to delivery and pick-up.
The industry was in the London stock exchange before acquiring by the takeaway.com.
Two companies merge to form the common industry named Just Eats’ parent company. Just
Eats’ listing in the London stock Exchange market list was replaced by the Just Eat
Takeaway.com.
The chairperson of the industry is Mike Evans. The revenue the industry is making is about
£779.5 million by 2018. The operating income of the industry is
£110.3 million in 2018. The net income of the industry is £79.9 million by 2018. The number of
employees working in the industry is 3600. The subsidiaries of the industry are Skip TheDishes,
Menulog, iFood and City Pantry (Ardila, 2017).
They have made acquisitions with different countries that are:
 Partnership with four new countries with local operators: ClickEat in Italy, Eat.ch in
Switzerland, Alloresto in France and RestauranteWeb in Brazil.
 To solidify the presence in UK the industry makes acquisition and to Urban bite into the
corporate market.
 Presence in the Canada by purchasing the YummyWeb in the region of Grub Canada as
well as Vancouver.
 Presence in Ontario along with the British Columbia markets.
7

The industry set 250 restaurants in Ireland and set commissioned economic consultants DKM for
the research on the Irish restaurant industry. They found that €1.5bn was spent by the customers
in the takeaway services. The DMK said that the takeaway services account for the 57% in the
industry sales and the sector will be growing by 17% in the coming years.
Business model
The Just Eat charge £699 by the restaurants to join the services in UK. The industry takes the 13-
14% commission on each order that us places in the restaurantsthrough the website or the mobile
apps. More than 90% of the industry’s revenue is coming from the commission it is taking from
the orders by the restaurants.
The industry requires the registered evidences by the restaurants for the local council
when they are joining the service but the industry found 35 unlicensed restaurants and no
hygiene rating in the audit (Franceschelli, Santoro and Candelo, 2018).
Investment
In 2009 the Just Eat industry gets their first series A funding investment. Investment was made
by the Index Ventures and Venrex Capital of £10.5 million in Just Eat Holdings Ltd. This helps
Just Eat to expand in the foreign markets and development in the business. In the year 2011
second investment was made by the two leading US capitalist’s ventures of £30, they were
Redpoint Ventures and Greylock Partners. In 2012 the third investment was made by the
Vitruvian Partners and they already invested partners, Index Ventures, Redpoint ventures,
Greylock partners in the just Eat Holdings Ltd of £40 million. This helps the industry with lot of
things and helps in the growth to a new level.
The industry bought Flyt in 2019; in this they started the restaurants with the software for
the food suppliers. This acquisition cost the industry £22 million.
Brand
In 2016, the company changes the logo with a vision to create the industry into the world’s
largest food community. The company changed the Just Eat brand.
The company started the marketing campaign on the television for the first time in 2009.
In 2012, the company started the overhaul of their global positioning of the brand and started the
campaign Don’t Cook Just Eat, along with the new series of advertisement on the television
(Guèvremont, 2019).
Sponsorship
8

The company sponsored shirt for the Derby County Football Club for the 2014-15 season. This
sponsorship ended for three seasons. After this in 2015, the company sponsored shirt for the
Oud-Heverlee Leuven. The team relegation to Belgian First Division B was done by the
company, still the company made sponsored shirts for the Oud-Heverlee Leuven.
The company also sponsored the series of the X Factor and UK version in fourteenth and
the fifteenth series by replacing the TalkTalk.
The company sponsored the cycle hire scheme of the official Edinburgh and was named Just Eat
cycles in 2016 (Feulner, 2017).
Future development context of Just Eat Limited
Just Eat Limited is an online food ordering industry which reaches to millions and millions of
consumers for giving away the food (Christensen and et.al., 2018). This online food ordering
application is depicted as Just Eat Takeaway.com which caters the consumer different variety of
dishes and satisfies them towards their order of food process.
The official site Just Eat Takeaway.com helps the consumers order food which makes
their day better and the deliciousness of the food is reached to the people at large scale. The
online site expects to seek further growth by fulfilling the current and future needs and wants of
the customers. This also helps the business to pave the way for the upcoming changes which are
to be taken during the pandemic. This pandemic has created one positive aspect that the food can
be delivered online through the application and people from different area can grab the services
when in need. Just Eat Takeaway.Com provides the opportunity to the consumers or the people
in general to takeaway their orders easily during this time of pandemic (Gao and et.al., 2021).
The company expects to win market share in Britain in 2021 and wishes to achieve the
revenue growth despite the rivalry with the other competitors in the market. As demand for food
delivery services have grown over the past year, the next years until the pandemic gets over, food
deliver ordering on the online sites will flourish with all the benefits which the business incurs.
Just eat Takeaway.com order growth will continue even the pandemic-driven deliveries. This
will ease the process in various markets over the course of 2021 and 2022.
Just Eat takeaway.com in future will combine with Grubhub to create global online food
delivery market. This partnership will help in growing the online food business of the Just Eat
9

takeaway.com to become more successful and this will help in also analyzing and identifying the
strengths, weaknesses, opportunities and threats in the market.
This plan which the company has taken towards growing its business during this
pandemic and for the future perspective, it will help in achieving great heights and also framing
of the strategies will help in making the business more suitable for the consumers by fulfilling
their demands, needs and wants (Thiruvengadam and et.al., 2018). By providing online food
facility to the consumers, Just Eat Takeaway.com has prospered through many ways and the
company grows in making the success factors more strong.
Through online food delivery which the Just Eat Takeaway.com the market shares of the
company has also been considered as important. The company in the near future is focusing on
the technology advancements which will help the systems and processes to be more effective and
efficient. Therefore, the company is looking for the innovative techniques and ways through
which the online business can prosper through the future years and this will help in growing the
business on large scale.
Market trends are the biggest cause for business to flourish. This makes Just Eat
Takeaway.com make innovate changes which will provide various benefits to the company and
the overall growth of the business will be seen through the market position (Bhimani and et.al.,
2019). Thus, disruptive innovation theory will help in creating new opportunities in the near
future for the business to come up with new techniques and will invade the process of making
the business more suitable for consumers and they will be receiving satisfaction which will fulfill
their needs and wants. The online food industry is will help the company analyze opportunities
and the strategies which can be beneficial both for company and the consumers. Therefore,
disruptive innovation will help the Just Eat Takeaway.com to make business effective and
efficient through online site.
CONCLUSION
Thus, it is concluded from the above report that Disruptive innovation theory has helped in
mentioning the definition, principles, process and evaluation of the theory was done through
benefits and limitations. Historical development of Just Eat Limited was described and
elaborated in detail which defined how the company was started and build gradually over the
years. Furthermore, future development of the company also described to assist the online food
10

business during this pandemic and over the future years. This was done in comparison to
Disruptive Innovative theory which helped in assisting the ways through which new
opportunities and trends can be followed for the business to grow effectively and efficiently.
Therefore, disruptive innovative theory was described in detail to identify the market needs and
the innovations that are to be taken place in the Just Eat Limited Company. This description has
also assisted in reviewing the technology also on large scale.
11

REFERENCES
Books and journals
Buisson and et.al., 2010. Blue ocean or fast-second innovation? A four-breakthrough model to
explain successful market domination. International Journal of Innovation
Management.14(03).pp.359-378.
Ardila, 2017. Historical development of human cognition: A cultural-historical
neuropsychological perspective (Vol. 3). Springer.
Franceschelli and et.al., 2018. Business model innovation for sustainability: a food start-up case
study. British Food Journal.
Guèvremont, 2019. Improving consumers’ eating habits: what if a brand could make a
difference?. Journal of Consumer Marketing.
Feulner, 2017. “You don’t just eat ‘em, you get match ready with ‘em”: A Content Analysis of
Alcohol, Food, and Non-Alcoholic Beverage Advertising in the United States during the 2014
FIFA World Cup Brazil.
Hopp, C. and et.al., 2018. Disruptive innovation: Conceptual foundations, empirical evidence,
and research opportunities in the digital age.
Leavy, B., 2018. Whitney Johnson: applying the principles of disruptive entrepreneurship to
talent management. Strategy & Leadership.
Aminoff, A. and et.al., 2017, April. Exploring disruptive business model innovation for the
circular economy. In International Conference on Sustainable Design and Manufacturing (pp.
525-536). Springer, Cham.
Petzold, N. and et.al., 2019. Disruptive innovation from a process view: A systematic literature
review. Creativity and Innovation Management.28(2).pp.157-174.
12

Millar, C. and et.al., 2018. Disruption: Technology, innovation and society. Technological
Forecasting and Social Change.129.pp.254-260.
Ab Rahman, A. and et.al., 2017. Emerging technologies with disruptive effects: a
review. Perintis eJournal.7(2).pp.111-128.
Droege, S. and et.al., 2017. Limitations of low-end disruptive innovation strategies. The
International Journal of Human Resource Management.21(2).pp.242-259.
Reinhardt, R. and et.al., 2018. The overlooked role of embeddedness in disruptive innovation
theory. Technological Forecasting and Social Change.132.pp.268-283.
Christensen, C.M. and et.al., 2018. Disruptive innovation: An intellectual history and directions
for future research. Journal of Management Studies.55(7).pp.1043-1078.
Gao, R. and et.al., 2021. The diagnostic tools for viable but nonculturable pathogens in the food
industry: Current status and future prospects. Comprehensive Reviews in Food Science and Food
Safety.20(2).pp.2146-2175.
Thiruvengadam, M. and et.al., 2018. Nanotechnology: current uses and future applications in the
food industry. 3 Biotech.8(1).pp.1-13.
Bhimani, H. and et.al., 2019. Social media and innovation: A systematic literature review and
future research directions. Technological Forecasting and Social Change.144.pp.251-269.
13