MBA501 - Dynamic Strategy and Disruptive Innovation: Starbucks Report

This report provides a comprehensive analysis of Starbucks' disruptive innovation strategy, examining the company from internal, external, market, and technology perspectives. The internal perspective assesses human resources, organizational culture, resource allocation, and organizational structure, offering recommendations for improvement. The external perspective considers stakeholder commitments, regulatory conditions, and economic factors, suggesting strategies to enhance innovation. The marketing perspective analyzes customer programs, feedback mechanisms, and innovative services, with recommendations for research and development. Finally, the technology perspective evaluates technological strategies, equipment, and digital platforms, proposing improvements for the company's innovation processes. The report concludes with a summary of key findings and recommendations to enhance Starbucks' innovative capacity and maintain its competitive edge in the coffee industry.

Dynamic Strategy
and Disruptive
Innovation

Introduction
Starbucks Corporation is an American Coffee
Company and Coffeehouse Chain.
The company was established in Seattle, Washington
in 1971.
It is considered as the main representative of
“Second Wave Coffee”.
Starbucks provides hot and cold coffee to its
consumers
The company uses the technology to produce the
coffee and delivering the services.
Tweet-a-coffee is also technology devices that is
launched by the company.

Internal Perspective
Human Resources
Employees first preference is quality
Supportive employee- LATTE System
Differently thinking
Organisational Culture
Collectivism
Connectivity

Resource Allocation
Starbucks invest the high amount on equipment's
– Custom designed espresso machine
Milk Pitcher
High technology
Organisational Structure
Marketing department
Innovation Management Policies

Recommendation
 Recruitment process
 Lean production system

External Perspective
commitments and relationships with stakeholders
Committed to provide the facilities
Satisfy the concern while investing the
money
Regulatory and economic conditions
Complies with rules and regulation
Tax Advantage
Inflation, high price rates, price discrimination

Recommendation
 Influence Stakeholders
 High dividend to shareholders
 Analysis the environment

Market Perspective
Customer visit programs
• Immediate
feedback
• Converted
weaknesses into
strength
Empathic designs
• 5 Step Process
• Innovation
experience

Lead-user processes
Upper-Medium class
Innovative services to consumers
High quality
Different verities

Recommendation
 Research and development department
 Improve lead users process

Technology perspective
Technological strategies
Starbucks Digital Network
Social Media

Technology
perspective
Brewing
Different equipment's
Mobile App
Paying bills

Recommendation
 Starbucks Machines
 Avoid Social Media for promotion

Conclusion
Starbucks is a Coffee Company
best disruptive innovation company
internal, external, market and technology
perspective
Recommended that the organisation has to adopt
some new techniques

References
 Basulto, D. (2015). How Starbucks’ dominance could one day be threatened. [online] Available from:
https
://www.washingtonpost.com/news/innovations/wp/2015/03/12/how-starbucks-dominance-could-one-day-
be-threatened/?noredirect=on&utm_term=.
502233b488d9 [Accessed 10/7/19].
 Gajsek, D. (2019). [Growth Study] Starbucks Marketing Strategy – How to Introduce an Old Product to
the New Market. [online] Available from: https://dgajsek.com/starbucks-marketing-strategy/ [Accessed
10/7/19].
 CAIL. (2017) Innovation at Starbucks . [online] Available from: https://cail.com/innovation-at-starbucks/
[Accessed 10/7/19].
 Starbucks. (2018) The Best Equipment . [online] Available from: http://
www.starbucks.in/coffee/espresso/best-equipment [Accessed 10/7/19].
 Soper , T. (2017) Starbucks is a tech company: Why the coffee giant is investing heavily in digital
innovation. [online] Available from: https
://www.geekwire.com/2017/starbucks-tech-company-coffee-giant-investing-heavily-digital-innovation/
[Accessed 10/7/19].

References
 Thompson, A. (2017) Starbucks Coffee’s Stakeholders: A CSR
Analysis. [online] Available from: http://
panmore.com/starbucks-coffee-stakeholders-csr-analysis
[Accessed 10/7/19].
 Marketing Week. (2015). How Starbucks is using technology
to boost revenue. [online] Available from:
https://www.marketingweek.com/2015/10/30/how-starbucks-is
-using-technology-to-boost-revenue/
[Accessed 10/7/19].
 Starbucks. (2018) How to Brew Coffee Press. [online]
Available from: http://www.starbucks.in/coffee/how-to-brew
[Accessed 10/7/19].

References
 Foster, L. (2018). 5 Ways Starbucks is Innovating the Customer
Experience. [online] Available from: https://
www.qsrmagazine.com/consumer-trends/5-ways-starbucks-innovating-cus
tomer-experience
[Accessed 10/7/19].
 Starbucks. (2018) About Us. [online] Available from: http://
www.starbucks.in/about-us [Accessed 10/7/19].
 Christensen, C.M., Raynor, M.E. and McDonald, R., (2015)What is
disruptive innovation. Harvard Business Review, 93(12), pp.44-53.
 Pisano, G.P., (2015) You need an innovation strategy. Harvard Business
Review, 93(6), pp.44-54.
 Christensen, C.M., McDonald, R., Altman, E.J. and Palmer, J.,
(2016)Disruptive innovation: Intellectual history and future paths (pp. 1-
52). Harvard Business School.