Managing Innovation: Applying Disruptive Theory to Terracycle Report

This report delves into the realm of innovation management, using Terracycle, a private recycling business, as a case study. It begins with an introduction to the concept of managing innovation within a business context, highlighting its significance in capturing market share and enhancing service quality. The main body of the report focuses on disruptive innovation theory, its core concepts, and its application in the context of Terracycle. It explores how Terracycle employs this theory to achieve competitive advantage and adapt to the competitive environment. The report further examines the historical development of Terracycle, its vision, and mission, illustrating how disruptive innovation theory aligns with its goals of waste elimination and environmental sustainability. The report also discusses the benefits and limitations of disruptive innovation theory, providing insights into its practical implications for businesses. It concludes by summarizing the key findings and emphasizing the importance of innovation in driving business success.

Managing Innovation

Table of Contents
Introduction................................................................................................................................3
Main body..................................................................................................................................3
Disruptive innovation theory..................................................................................................3
Application of disruptive innovation theory in historical context.........................................6
Applying disruptive innovation theory in future development..............................................8
Conclusion..................................................................................................................................9
References................................................................................................................................11

Introduction
Managing innovation in a business is handling various activities required to introduce
something new within the business organisation. It is a combination of management of
various processes along with improvement in the products and services that are provided by
the organisation. The major advantage of innovation is that it will help organisation to
capture large market share and also enhance their service quality (Tan, 2020). The following
report is based on Terracycle which is a private recycling business running in Trenton. It is a
volunteer-based recycling platform which is focusing upon collecting various products that
can be recycled. The organisation is developing various theories and innovation to enhance
their brand value. The report consist of various discussion on benefits and limitations of
innovation to the organisation. Along with this innovation theory applied on historical and
future terms in the organisation and also discussed.
Main body
Disruptive innovation theory
Disruptive innovation theory is a strategy which refers to simultaneous pursuit of
bringing in new products and services in the market and also showing the presence of the
organisation. One of the major purposes of this strategy is to make sure that they are creating
wealth as well as capturing market share for the organisation. Using this strategy organisation
can also achieve competitive advantage in the market and develop a number of different
innovative products and services. Along with this the theory revolves around searching for
new areas where organisations can enter without any additional cost.
When current business environment is taken into context a number of companies are
operating business in intense competition due to which they need to put their major efforts
towards attaining higher market share. The major aim of companies is to make strategies in
order to capture demand in market making their presence in the market prominent enough. In
this way they can successfully deal with the competition in the market and easily invite more
customers towards their offerings.
When taking Terracycle into context they are using strategy that involves a number of
different unique and new features through which they can enhance their competitive
environment. They are effectively undertaking a number of different activities with the help

of which they can capture large market share and also provide a competitive edge in the
market. The strategy includes differentiation, low-cost, value innovation all of which are
aiming towards achieving profitability and productivity. It is very significant for the business
organisation to analyse new market before they are introducing some new product or services
in the market. This will also assist the organisation in developing competitive image.
According to the theory there are four major concepts which are used by individuals to apply
it successfully in the business as mentioned below:
 Business environment innovation is very trendy and one of the basic tools with the
help of which business can grab a number of different opportunities. It is required by
business to use effective innovation in their products as well as services to increase
the demand. In order to do this company also needs to ignore needs and preferences of
consumers who are not their potential consumers.
 Business entrants need to focus upon startups and also downmarket social group so
that they can subsequently fulfil their requirements. It will help the organisation to
significantly address requirement of their consumers.
 Business also needs to focus upon the consumer who is bringing profit to the business
rather than the audience.
 The new entrants in market are making effective use of disruptive innovation theory
through moving upwards in the offering of better solutions than the already existing
players in the market or offering.
 Market can be attracted through making presents by the new entrants as they are
disruptor of the already going on trends. In this way they can successfully provide
high competition in the market through innovation and development.
Therefore when the theory is taken into context it is necessary that organisation is
developing new trends in the market through a number of different mechanical factors
(Baldwin, E. and (Curley, 2020). The organisation is also required to make sure that they are
successfully producing the products at the lower cost so that they can focus on every group of
customers. Four tips that can be used by organisation in order to effectively use innovation
are as follows:
Not all innovation in disruption: Disruptive innovation can be described in a number of
different ways. It is not always necessary that every innovation brought by organisation is a
disruptive innovation. Disruptive innovation is something which was never developed earlier
and is freshly developed in start-ups for small businesses.

Disruption can be low ended or a new market: The theory is undertaking two major aspects
which are necessary for new entrants when they are entering in the market. The first is low
and the disruption in which business is taking entry in lower segment of market and serving
consumer requirements. However this will generate low profits for the organisation but it will
help them in making their presence.
Disruption innovation is a process rather than a product or service: The theory is also
defining various suitable processes which can be applicable for effective execution of
bringing innovation in an organisation when they are fresh in the market. It is necessary that
organisations are focusing upon various processes in order to Captain market and be
innovative and unique at the same time.
It is necessary to choose battle wisely: It is often seen that there are a number of competitors
present in the market. It is necessary for the new arrivals to make sure that while bringing
disruptive innovation in the market they are successfully understanding the competition. It is
necessary to make sure that they are analysing the current competition in the market along
with the competition that me a rise for them in future (Zhang, Liu and Chen, 2020). It will
help them to take decisions correctly and also make sure that they can successfully grab all
the opportunities in the market that are present for them.
Benefits of disruptive innovation theory
 One of the major advantages of disruptive innovation theory is that it is benefiting the
organisation through delivering various new opportunities for success in the overall
industry. In order to do so industrial development and proper enhancement of
different influential needs and requirements of customer is also required. This is also
beneficial by providing a competitive advantage to the organisation as it will grow in
the market fulfilling all the requirements of customers.
 The following theory is also beneficial to the organisation from a long-term prospect.
It is helping the organisation to make sure that they can cut the competition from the
market and provide long-term vision to the employees in the organisation in order to
grow sustainably.
Limitations of disruptive innovation theory
 One of the major limitations of disruptive innovation theory is that the innovative
processes which are needed for the theory are difficult to develop effectively. It is
often seen that effective processes are unanticipated by social groups and the
innovation can also get a negative reaction from the society. This will provide a

barrier for the organisation in its success when they are using disruptive innovation
theory.
 The disruptive innovation theory is majorly concentrating on various ideas and
development for products. It is necessary to understand the requirement of the
consumers as well. This is one of the major drawback of disruptive innovation theory
where effective profitability of the organisation is affected due to use of different new
technologies.
 Shortage of financial support to the organisation is one of the major disadvantage of
disruptive innovation theory. It is often seen that when a totally new innovation is
brought in the market huge finances are required in order to successfully execute the
plan. Therefore the following concept requires huge financial support for the
organisation so that they can successfully undertake the strategy made in disruptive
innovation theory. Due to this the model is often leading to long-term debts for the
organisation as the return from the theory may also take time for the organisation.
Application of disruptive innovation theory in historical context
Company overview:
Terracycle is a private recycling company whose headquarter is situated in New
Jersey. The company is privately held and run on a volunteer-based system. The organisation
is collecting and recycling the waste joining hands with a number of municipalities in order
to make sure that the garbage can be collected and recycled successfully. Also focus on
producing a number of new different commodities from the recycled waste. The organisation
was founded by Tom Szaky and Jon Beyer in the year 2001 (Sukoco, Tanjung and Ishadi,
2020). The organisation is now creating 200 different products which are licensed to different
manufacturers and is also working in fertilisers industry. They are making fertilisers from
vermicomposting which are produced by feeding organic waste to different worms
Vision: Vision of the organisation is to eliminate waste through generating recycling methods
which can help in production of new products from the waist. Along with this they are also
recycling waste from traditional materials in order to make sure that a clean and sustainable
environment can be developed.
Mission: The mission of organisation is to offer recycling programs which are free of cost
which can be funded by different manufacturers and retailers throughout the world. The
organisation is also collecting and recycling various products from these retailers and
manufacturers which are difficult to recycle otherwise.

Historical development of Terracycle
Terracycle is an organisation which is recycling various wastes in different areas
throughout the world. They are successfully producing a number of new products with the
recycled waste in order to develop a clean and green environment. Their major vision and
mission is to significantly eliminate pollutants from the environment and offer a clean and
green environment to the citizens of the society (Mir, Siddiquei and Razzaq, 2020). Besides
this the organisation is also developing around 200 different products which are licensed by
the manufacturer instead of their own license. In current situation companies also trying to
find various products which are hard to eliminate or recycle and they can carry on its
recycling.
Fulfilling all these objectives the organisation can initiate in making the environment
more clean for the people in society. Disruptive innovation theory is fitting the factor of
fulfilment of all these needs and objectives of the organisation. Considering the present
environment conditions it is necessary that companies recycling more and more products
which is majorly including politicians and paper bottles. The organisation is also looking to
develop new products from this eliminated waste. This will help the organisation and the
people in the society to live in clean and fresh environment successfully.
Disruptive innovation theory is prominently used by the organisation in order to
analyse various requirements of the people in society. They are making sure that all the
products and services that can be recycled by them a recycled and they are also developing
various ways to collect garbage. The organisation have developed significant system which
will help in taking garbage from different areas in order to focus upon sustainable
environment. According to the changing dynamics of market the organisation is also entering
into different markets. They are expanding their business in order to make sure that they can
collect waste from a number of different industries. They also focus upon making sure that
these expansions do not lead to heavy additional cost for the organisation.
The disruptive innovation theory is discovered and developed so that the
organisations can enhance their presence in market worldwide (Chandler, 2020). The
organisation is now working in 92 different marketplaces and is focusing upon eliminating
waste of a number of industries. Disruptive innovation will help them to fulfil their vision and
mission and develop a clean and green environment for enhancing sustainability successfully.

Applying disruptive innovation theory in future development
The disruptive innovation theory is a procedure that is depicting different stages
which can lead and enable an organisation to significantly apply various terms and
procedures to reach a particular destination and conclusion. It will add value to the
organisation and helps them to enter the market making their presence prominent enough
through the use of various research. It is necessary that the organisation is also keeping in
mind the enhancement of competitive advantage in the market place and developing the
unique selling point. When taking the future development aspects in innovation into context
the offerings by Terracycle company is to enhance their operations in recycling industry
along with various concerning services in the organisation.
When taking the current market situation into context sustainable development and
clean environment our major market trends towards which individuals are focused. It is
necessary that the organisation is developing various seminars and programmes in order to
make people aware about a clean environment (Ceci and Masciarelli, 2020). Prominent
initiatives can be taken in order to develop sustainable environment and also enhance the
interest of customers towards developing such environment. It will also help in reducing a
number of different diseases which are caused due to pollutants in the environment.
Terracycle is identifying various requirements in order to meet this demand of the
environment facing a number of different challenges due to cultural differences. They are to
provide society with various factors which will help them to facilitate auto collection of
wastage and garbage in their surroundings.
When taking Terracycle into context they are offering various programmes for
recycling which are funded by a number of different brands. Various manufacturers
throughout the world are collecting and recycling waste products and it is difficult for the
companies to currently recycle 200 different types of waste. The organisation is required to
provide simple recycling methods and garbage collecting system to home, school and offices.
Along with this they can also provide free shipping labels with the help of which they can
provide premium services to their potential consumers. This will lead to a pollution free
environment providing fresh air to people and making their business sustainable in the
market.
The organisation has successfully using disruptive innovation theory under which
they are first recycling the products and then also providing various online platforms for their
consumers to help them (Paulus, Coursey and Kenworthy, 2020). The market segment is also
attracting various non-profit objectives which will help in serving the society with awareness

about various ways to develop environment. The organisation can also take effective steps for
promoting their services and products while using online platforms. They can also enter into
global market which is a great way to make sure that they can enhance their profits and
productivity. This is a great way for the organisation to enhance their customer base and
engage in various nations. They can target on grounds and make sure that they are taking
effective measures to make the environment and surroundings clean. This will also help in
sustainable development of the organisation.
Along with this various another benefits of recycling services is that it will lead to
increase awareness about environment in the consumers. It can help both organisation as well
as environment. Along with keeping all the process of the organisation into check they are
also working for environment (Chan, Lim and Uy, 2020). They can raise awareness about
various factors like global warming and deforestation which is also leading to depletion of
oxygen level in the atmosphere. Disruptive innovation can help in enhancing and expanding
the portfolio of the services that organisation is providing to the society. They can use various
discoveries and facilities through digital marketing. In order to provide more convenience to
their customers they can also develop a mobile application which will help them to manage
their customers and reach out to them successfully.
It will also offer significant opportunity for growth and development along with
enhancing the potential consumers. There are a number of features for the organisation that
can be developed for the general public. They can also provide their news feeds on the
website along with various magazines and podcasts. In this way organisation can fulfil all the
ethical norms they are required to follow. The guidelines of the organisation must be clear
enough which are to be followed by employees. Disruptive innovation theory is a great
theory which can be used by organisation in order to make sure that they are enhancing their
business activities and increasing their customer base. Along with bringing benefit to the
society they can also increase their profitability which is the major reason why the
organisation is run.
Conclusion
With the help of the above report it can be concluded that innovation is significantly required
in an organisation in order to make sure that the organisation can develop unique from its
competitors. There are a number of trends which keep on changing and the organisation is
required to bring in enhanced products and services to meet the market trends. The report is

also developing basis of management of innovation along with disruptive innovation theory.
There are various ways in which to be theory have been applied to historical aspect of the
organisation along with the future aspect in which it can be used. Disruptive innovation
theory is also processing and analysing various ways in which they can develop their
presence in market and competitive business environment. This will lead to open a number of
opportunities for the organisation in order to grow and expand their business successfully.

References
Books and Journals
Tan, S.F., 2020. Managing Innovation: Technology, Consumer and Sustainability
Perspective, and the Challenges. In Leveraging Consumer Behavior and
Psychology in the Digital Economy (pp. 205-216). IGI Global.
Baldwin, E. and Curley, M., 2020. Managing Innovation in the Digital World. De Gruyter.
Zhang, W., Liu, Z. and Chen, J., 2020. Managing strategic contradictions: A resource
allocation mechanism for balancing ambidextrous innovation. Computers in
Human Behavior, p.106277.
Mir, F., Siddiquei, A.N. and Razzaq, M.A., 2020. Managing dynamic work teams for
innovation: integrating knowledge management and organisation behaviour using
the DFO model. International Journal of Knowledge and Learning, 13(4), pp.313-
338.
Ceci, F. and Masciarelli, F., 2020. Cultural Proximity and Organization: Managing Diversity
and Innovation. Routledge.
Chan, K.Y., Lim, K.H. and Uy, M.A., 2020. Entrepreneurship-Professionalism-Leadership: A
Framework for Nurturing and Managing the R&D Workforce for a National
Innovation Ecosystem. In Entrepreneurship–Professionalism–Leadership (pp.
177-207). Springer, Singapore.
Paulus, P.B., Coursey, L.E. and Kenworthy, J.B., 2020. Managing the key processes for team
innovation. In Creative Success in Teams (pp. 1-17). Academic Press.
Chandler, J.D., 2020. Innovation, Social Networks, and Service Ecosystems: Managing
Value in the Digital Economy.
Sukoco, B.M., Tanjung, C. and Ishadi, S.K., 2020. Managing paradoxes of innovation in an
Indonesian TV group. Creative Industries Journal, 13(2), pp.137-158.