A Case Study on Starbucks

Exploration of Successfully Managed Innovation of A Company: A Case Study on Starbucks


In an acutely vying business environment, innovation has been highly regarded by enterprises. It is vital for companies to effectively apply innovation strategies into practice. In this essay, Starbucks, as a world famous cafe brand, will be taken as an example to demonstrate how a company has successfully managed innovation.

Innovation is regarded as ‘a process of bringing any new, problem-solving ideas into use’ (Conway & Steward, 2009, p.10). The entire process, driven by the ability to see connections, to spot opportunities and to take advantage of them (Tidd & Bessant, 2014), creatively prompt the development of new product, process, services and business paradigm.

In current marketplace, service innovation plays a significant role in business strategy. It is considered by enterprises as powerful sources of competitive

advantages in the way of offering better services such as faster, cheaper, higher quality etc. than anyone else, as is mentioned by Tidd and Bessant (2014).

Starbucks, as a global cafe company, has successfully managed innovation by creating the new market of coffee drinking with a completely novel service. It generated the idea of coffeehouse and provided the service of offering cosy places for consumers to read books or journals, have a conversation with friends or clients, take a rest after shopping and enjoy the moment of being alone with a cup of coffee and refreshments. To some extent, Starbucks created the American coffee culture and redefined the sit-down restaurant (S. Clayton Christensen, 2007).

Being the first mover in the cafe business, Starbucks developed from a creative idea into valuable brand by effective strategies in service innovation. Initially, in the area of most Starbucks, customers have access to free WIFI by cellphone log in, which is a competitive aspect in modern society. For instance,...