Product Development And Innovation Strategies To Increase Market Penetration: A Case Study Of Talabat Essay.

Utilizing Innovation to Increase Market Penetration

The study discusses how organizations source, foster, and also support innovation in distinct organizational ambiances and cultures. In every business, product development and innovation are the most important component of the organization since it is directly related to the organization's growth. In previous research, it has been shown that the beginning of product development and innovation method may readily help a business to make effective judgments that can have a positive influence on the result of the organization in a timely way. In addition to product development and innovation, a company's business strategy may be used to increase the rate of market penetration as well as to grow its business more efficiently. However, in this study, a summary of how Talabat might use the process of product creation and innovation to improve the market penetration rate of the company has been provided succinctly. The second portion of the research, on the other hand, outlines how the sales rate of Talabatmay be increased via the implementation of a product development and innovation plan.

Innovation is the key component that can be utilized to enhance the market penetration rate of an organization succinctly. According to the words of Chen et al. (2018), due to the inception of massive competitiveness among the international organizations, several firms have decided to improve their product development and innovation strategy to gain a competitive edge against their rival companies. In this regard, companies such as Talabat and Uber Eats are also utilizing various product development and innovation approaches to increase the financial outcome of the company in a succinct manner. According to the words of Kahn (2018), UberEats is utilizing effective and innovative technologies within its operations to improve the service of the company in a more compatible manner. The CEO of the company has also outlined that the UberEats app has been developed in a way that can make it easier to locate the food that the consumer desires (He and Tian, 2020).

In addition to that, the CEO of the company has also outlined that they have utilized machine learning; as a result, that has enabled them to surface suggestions to the consumer's favorite restaurants, 30-minute delivery choices, and popular restaurants in the area. The marketing manager of Uber Eats has provided a platform with the help of innovation to the consumers, in which the consumers can get the effective service in a matter of time. According to the words of Dziallas (2019), outside the house, hospitals and workplaces are among the most common locations for Uber Eats orders. On the other hand, the innovation of Uber has also enabled the consumers to control how their meals will be delivered. Apart from that, for those who prefer to have their meal brought to their front door, they may order to "meet your food at the curb" or even have their food delivered directly to their door (Hofstra, 2020). As a result, the application of this innovative approach has reflected a favorable impact on the market penetration rate of UberEats effectively.

The Case of Talabat: Implementing Innovative Product Development Plan

On the other hand, the CEO of Talabat has outlined that Expo 2020's sustainable multi-story kitchen concept has gathered together some of the UAE's most beloved restaurants to showcase their food to guests from all over the globe. A view into the future of food and grocery delivery has been provided by a variety of cutting-edge technological innovations, including service robots, robotic baristas, e-scooters, and ice cream confectioners (Bloom et al., 2019). On the other hand, the company is planning to implement autonomous delivery cards in different phases of testing in several of its prime markets of the company (Yun et al., 2020). In addition to that, the company is also looking forward to increasing the traffic to its restaurant partners through utilizing subscription models, as well as ways to use Fenech to the advantage of all parties involved (Arundel et al., 2019). Apart from that, the company is looking forward to expanding the number of its cloud kitchens in order to address the demand of the consumers in an effective manner. In addition to that, creating even more value for the ecosystem is one of the ways the firm is sterilizing to assist its F&B sector recover and thrive in the future (Russell et al., 2018). On the other hand, the company is getting partnered with some massive restaurants in GCC countries to improve the market penetration rate of the company in a significant way.  

According to the words of Lizarelli et al. (2019), in the context of innovation, there are mainly four types of innovation that can be outlined such as architectural innovation, disruptive innovation, radical innovation, and incremental innovation.

Figure: Types of innovation

(Source: Buchheim et al., 2020)

The following part has outlined the characteristics of each type of innovation.

Architects innovate by taking learning, skills, and technologies learned in one market and applying them in a new one. New clients may be gained with this invention as long as demand is receptive (Edwards-Schachter, 2018). The risk of architectural innovation is usually minimal because of the use and reintroduction of established technologies, even though most of the time; it has to be tweaked to meet the new market's requirements.

Considering innovative technologies and processes in the company’s present market can be referred to as the process of disruptive innovation. In order to remain undetected, newer technology is typically inferior to that already on the market (Demirciogluet al., 2019). It is more costly and has fewer functions, is more difficult to operate, and has a less attractive design than more recent technologies. New technology only overtakes the old after a few iterations, causing havoc across the market (Oanh, 2019). By that time, possible that existing firms won't be able to keep up with emerging technologies.

Revolutionary technologies and the creation of new industries are at the heart of this process. There was no such thing as the first form of transportation, but the aircraft was revolutionary because it enabled commercial air travel to flourish.

Innovating in little increments over time is the most prevalent method of doing so. Because it makes use of the current technology and adds new features and improvements to the current product line, it's a win-win situation for companies and their customers. In some way or another, almost every company engages in incremental innovation.

Types of Innovation and their Impact on Market Penetration

However, following the business model of UberEats and Talabat, it can be outlined that the inception of an increment format of innovation will be more beneficial for enhancing the performance and product development process of the company in a succinct way (Giannopoulouet al. 2019). According to prior studies, it has been outlined that the adaptation of this process can easily enable the firms to implement innovative technologies while maintaining the prior values of the company in a succinct manner (Doloreux et al., 2019). Therefore, it can be easily outlined that the application of increment innovation can easily enhance the market penetration rate of the firm in a succinct manner. Amazon Web Services (AWS) has partnered with talabat to help the region's premier food and grocery delivery service focus on innovation and meet increasing customer demand. Consumers, couriers, and more than 13,000 restaurants will benefit from talabat's shift to the world's premier cloud platform, which includes its mobile phone app, infrastructure, and all customer and vendor technology. Modernizing their applications, talabat's technology team shifted to a micro services architecture and migrated the application development services to Amazon Elastic Kubernetes Service (Amazon EKS), enabling it to concentrate on creating new services fast and at scale. Because of this, talabat's weekly project deployments have increased by double. This includes the payment gateway, dining network, chauffeur app, and the customer-facing app. Talabat now utilizes Amazon EKS to handle and over 600 containers in production. New services like talabat mart have been able to go live in as little as two days instead of the usual fifteen. AWS managed service Amazon Aurora helps talabat grow and handle thousands of transactions a day while still ensuring high availability and dependability of the application. 

Android and iOS are two of the most popular platforms for developing mobile applications and establishing business brand identity. Every business is buzzing because of the user-friendly features of food delivery applications. The food business has undergone a huge change as a result. UberEats is an app worth noting in the food sector. UberEats, the company's new food delivery app, offers the sector a boost while also broadening its reach beyond the typical on-site order. It's possible to get meals from virtually any restaurant in town with just a single click.

The importance of innovation in a company's performance cannot be overstated since it may provide the organization with a long-term competitive edge and help it succeed. In order to achieve both innovation success and organizational effectiveness, it is challenging to manage both effectively and resourcefully innovation operations. This is because certain intra-organizational aspects must be taken into consideration. Because of this, it becomes necessary to consider innovation as a procedure within the framework of the company. Organization structure and strategic activities have long relied on contingency theory (Singh et al., 2020). Contingency theory has been used extensively in a great deal of research to link organizational features of strategic management to the task environment. Productivity increases were a major issue for businesses in the previous decades since they relied heavily on delegating work to employees and customers rather than investing in the internal development of new goods and services. A company's R&D department was traditionally the only place where innovation could take place. Without proper market understanding, these employees were spurred into action by technology. The development of internet platforms and the necessity to monitor client preferences and new market trends have resulted in a larger variety of interactions between customers and producers.

During the 1990s, firms began to realize that including consumers in the innovation process increases the likelihood of a successful outcome and encourages new products to be more inventive. Customers are now seen as major contributors to the success of innovation. Consumers now actively participate in the product creation process to create goods that are more valuable and better meet their specific demands. The way different innovations are generated may be clearly influenced by the current structure of a company. The more the usage of inter-functional development teams, the more likely it is that an organization will succeed at innovation. International companies such as Apple, Amazon, and Microsoft are investing a huge number of resources to facilitate their product development phase effectively. Therefore, it can be outlined that the application of innovation can be beneficial for enhancing the market penetration rate of Talabat.

(Source: created by author)

The above part of the study has outlined that the application of the innovation process can enable Rafeeq to capture a greater marketplace succinctly. Apart from that, the newly appointed manager of the company has proposed an action plan that has outlined the strategies that needed to implement for increasing the financial performance of the company in a more effective way. In this regard, the company will require to gain investment as well as the company will also require to adopt effective approaches which can be utilized for enhancing the product development process of the company. However, the report has forecasted that the firm can raise approximately $10 million to fascinate the innovation process of the company more effectively. In addition to that, there are also some risk factors are presented that need to be addressed in order to achieve the expected outcome from the investment. Apart from that, the report has also outlined that the ROI value of the project is also high which reflects that the firm can generate more profit with the application of this strategy. The market circumstances may affect the value of the investment to grow or decline. The value of company assets might be affected by corporate choices, such as whether to grow into a new business sector or combine with another firm. Investing internationally might be affected by what happens inside the country in which the investment is based. As a result, a variety of dangers exist. Liquidity risk refers to the difficulty or ease with which an investment may be liquidated if necessary. Another risk element is related to the number of assets they have. It is a general rule of thumb that the more money company have invested in a single asset, the bigger the risk.

Some multiple methods and techniques can be taken under consideration for protecting the rights of the intellectual properties of Rafeeq. However, the steps for protecting intellectual properties are mentioned below.

Artistic emotions and works of authorship are protected by intellectual property. Any combination of text, artwork, or drawings generated by a company may be licensed for copyright purposes.

The usage of brand names, emblems, and logos distinguishes products. There are many different types of trademarks, including words, phrases, images, and even paintings and sculptures, all of which may be used to identify the source or ownership of a certain product, commodity, or service. The preservation of the business and the peace of mind that comes with knowing that others cannot copy or mimic the trademark are just two of the numerous benefits of trademark registration in the UAE (Brandl et al. 2019). In Qatar, the application of this method can easily protect the intellectual property of Rafeeq.

Constant innovation may help a company make quick, informed choices that will help it meet its long-term strategic goals. It is expected that the implementation of this technique would allow the business to quickly identify and document the company's intellectual property briefly.

Conclusion

In light of the above, it can be concluded that one of the most effective methods for meeting a company's strategic goals is innovation. However, the Talabat Company has been suggested to implement effective technologies to enhance its market penetration rate. On the other hand, techniques have been advised to be implemented in the company which may allow the firm to protect its intellectual properties.

References

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