Innovation plays a vital role in the organisation as every enterprise need to do when they start up their new life of business with the innovation and effective strategies. Thus, transfer a innovative ideas into the various different structures for the main purpose of utilising the new development opportunities in the innovation. Starbucks is the best example in which they understand the innovation and blend of strategy. They are majorly known as a unique strategy they choice under the blue ocean company it was capable to capture an effective market share and growth earlier. For the purpose of inspiring the most new entrepreneurial opportunities and the framework of innovation to be discussed in this project report. The main objective under the topic of innovation and strategy in which its is driving forces that enable the Starbucks to obtain the market position and capture a market share (Skålén and et. al., 2016). There is an also a critical analysis are to be discussed under which they have to performed for attributes understanding under which they have to contributed to organisation's success after adoption and application of blue ocean strategy.
a) Key drivers, entrepreneurial opportunities, strategy and innovation frameworks
Main driver of innovation
Each and every new entrepreneur, innovation and business strategies they are inseparable terms. It is the most necessary in which both employer and employee are able to handling the situations under the innovation and creativity. There are main drivers that are adopted which are as discussed below-
Developing talent- It is a most important of development as well as innovation which can be included under the human resource or manpower through establishing the fresh talent. Therefore, it is an individual responsibility of the company in which they are mainly recognising the fresh talent that can be possible through the conducting the training and development programs. Thus, Starbucks is an organisation under that it include a fresh talent as well as creativity worker. Thus, it is an entertainment organisation in that they are brining the new ideas as well as various innovative ways through which the customer or audience does not feel getting bored as they enjoy and fun (Mentink, 2014). Thus, they not feel bored with the repetitive acts. Thus, under this creative process in which the people act as innovative and therefore they sometimes feel that they are come up with new ideas and innovative things.
Establishment creativity- They go with the creative and innovation in which they create a friendly environment at the workplace in which there is a brainstorming in that they develop creativity. There are three main elements are the motivation, technology and knowledge through they can come up with the new ideas. Thus, the another elements that impact negatively at the workplace is that are the stress and pressure which break the new ideas (Hussain and et. al., 2013). Starbucks establish a creative environment through which they deliver an efficient resources that assist them in establishing a better innovative ideas that can be implemented in the entertainment acts and while at the time of culture.
Develop and maintain the relationship- Each and every company are come up with the team in which the organisation have to resolve all the barriers they bring up at the time of functioning of these team. Therefore, adopting the new methods are the most vital in the team member within the organisation that are establish the effective bonding relation. Therefore, it is the most vital to encourage the effective internal environment of the company.
Encourage the fresh culture- Culture is the most important factor under which it directly affecting on the the organisation. Thus, the enterprise have to develop or initiating the innovation by develop modernisation in the culture. Thus, at the time of innovation culture that can be not highly informed within the workers. There is a overload as well as monotonous work style and regular routines that are in just to induce the refreshment.
Enforcing limits- The Comfort is the most important part that uplifting the organisation and the Starbucks does not loose their comfort zone. Thus, it become possible to them to attain the brand recognition in effective manner all over the world. Thus, if the limitation are to be extended, people put their more efforts in the work and increase in the hard work. Thus, it will directly impacting on the business in a positive manner and also improves performance of both employer as well as employee (Thijsen, Tong and van Leer, 2014). Thus, if there is a repetitive work of assignments are included in its work, the workers are come up with the new innovative ideas they are unique in the workplace. Thus, it can be said they are come up with the new innovation ideas in that particular circumstances that assist them in identifying the future bearer for the organisation.
Starbucks is a highest quality of Coffee under a American Company under which it explore the new entrepreneurial opportunities. Thus, it is the best example how the entrepreneurial enhancing its skills and knowledge for their own benefits that help them to obtain a gaining position which can used through anyone at that time when the strategy planning and innovation are going to be stopped. Thus, there are some various entrepreneurial attributes that are needed to established of Starbucks that are as described as follows-
1. Great purpose- The main purpose of Starbucks is that to enhance the quality in which they induce the finest beans of coffee through they can enhance the live of the people. Thus, they engaged with the customers in which they share few moments of laugh and uplifting the lives of customers(Baporikar, 2015). Thus, its purpose assist in ignoring the diversions that gives harm to the entrepreneur. The orientation is the most important purpose in that they earn huge amount of profitability that are the main goal as they are not a main purpose. Thus, it will give success but not in longer time period.
2. Creative workplace- Workplace is the most important part of the organisation under that the firm have to satisfied highly with the working situation. Thus, if the team would be more creative that it will enhance the chance of creativity. Thus, unique strategies and problem solving methods give the various advantages that leads to increase creativity within the workplace. Thus, it is main moral of employer responsibilities that make sures that there is a credibility in the workplace.
3. Take risks- Being as a entrepreneurial that include the major risk as there no support regard to securities investment when opened up a new business. Thus, there is an already presence of various MNC that are the major biggest threat factors for the smaller and micro level enterprises. Until the organisation gaining the brand image, development of new goods or services and minimum popularity is the main risk (do Rosário Cabrita, Matos and Cruz-Machado, 2015). Thus, but they are implemented effectively which can gives them a huge amount of profits. The entrepreneurial have no threat regard to risk and as they develop a coffee firm with the dedication power and creativity at the maximum extent. Thus, if the unique strategy is going to be implement that gives them to gain the better standards and give them success in a quick manner.
There is an need of business growth in that that are very essential and important part of the organisation. Thus, the success is not so, effective only due to development of new innovation ideas and implementing the strategies that it does not get any responsibilities on the off shoulder. Starbucks establish and adopted a strategies through using the growth matrix tool under which there is a Ansoff matrix (Clark and et.al, 2015). Thus, it will assist in analysing the all the areas where there is a growth opportunities and it induce the to growth in the single segment. Ansoff's matrix that is a 2*2 matrix under which there is a scaled on the target markets and goods of a firm. It can be categorised into the various parts that are as follows-
1. Market development- There is an various new areas as well as new segmentation of this particular existing markets which are being targeted and explored through the firm within its existing goods or services. It that manner there is a particular development strategies are to be used. Thus, it does not involve any kind of risks as it is more easier and comfortable in that manner due to which its will enhancing the firms growth as the same kind of goods that has been already succeed and adapted that was used. There are various types of marketing and sales that can adopted under this particular strategy.
2. Product development- In the product development there is an innovation strategies it is a most useful when the firm really wants to enhancing in their customer loyalty. Furthermore, they have to develop a unique and innovative goods that can be used for the purpose of targeting in the same kind of market structure workplace (Gassmann, Frankenberger and Csik, 2014).. Thus, it majorly includes a high risk as it is only when the new goods are fails in the target market, customer that are existing may shift to the substitute of the organisation. Therefore, in the worst case study this particular strategy are to be assist in getting the high market share and also saving the optimum resources that are needed for capturing the high market.
3. Market penetration- In this particular strategy of Ansoff matrix under which the company used their existing goods or markets by using the market penetration strategy. Thus, the risk is less, resources or efforts that are needed that is also affordable. Starbucks can adopted this particular strategy through evaluating the reasons and areas that can be used by adopting the product to reach with a larger audience (Papazov and Mihaylova, 2016. Thus, BCG matrix is that tool which can be adopted for the purpose of obtaining the better outcomes and invest in the particular area that can be effective
4.Diversification- There is a high risk involve in this particular strategy that is a combination of new goods that will be developed in the new potential target market. Thus, there is a proper analysis and evaluation that is more skilful that is needed for attaining the purpose of this particular strategy.
Each and every firm are needed to induce the innovative competencies that does not seem to be less interesting for the audience. Thus, it is most important for the Starbucks in which they develop an innovation framework that resultant into development of innovation (Renko, Shrader and Simon, 2012). There are some steps for the purpose of implementation of innovation within the organisation are as below-
1. Success must be scalable: The employees are work within the organisation as they feel neglecting and for there hard work there is needs to be awarded. It will increase spirit and enhancement of innovation within the workplace.
2. Usage of management tools and theories that are needed in the company: The Starbucks adopt these management tools and theories that help them in getting the systematic outcomes without any issue. Transparency helps them in attain them implementing the progress and procedure that are to be assured. Thus, there is any kind of wrong activities and sort of discrepancies which can be recorded and tracked for the purpose of security and safety.
b) Application of Blue Ocean Strategy
Blue ocean strategy is a book which is published in year 2005. this book is written by W.Chan Kim and Renee. It consists around 150 strategies which are helpful for organization to attain their set of target and objectives. These strategies are able to improve value of company. These can be opted by Starbucks in order to improve their performance and work quality as well. Continuous success of the firm is possible with the help these strategies. Blue ocean strategy is separated in mainly tree parts and each part consists different scenario and each one is define strategies which are as aligned below:
- The first and most important part define the concepts of various strategies which consists value innovation. It help to reduce work and eliminate errors as well.
- The second part of this book define around four principals. These are able to reduce planning risk and unlocking market demand.
- The third and last part define leadership and fair process which is useful for companies to meet their set target and objectives as well.
This concept is opted by most of the organization which is the rising call for innovation and creative ideas. Starbucks use this tool in order to improve their performance in international market. It is the easiest way for company to become a global player and increase their speed as well. Various types of strategies are mention in that books which are opted by Starbucks company for attain their objectives and goals in a timely and efficient manner. These are able to minimise and cost of company and maximise the profits through which organization is able to improve its current market share. Managers and leaders are responsible to frame to various types of strategies and plans which help them to meet long term as well as short term objectives and goals. Through this companies are able to improve their performance and work quality as well. Further, it is the effective tools for them to attain their set of targets. With the help of this factor organization can able to attract large number of people and increase large number of customers as well. Thus, it is the systematic approach which every company needs to follow and apply them as well. Work quality of company as well as employees are able to improve. They can able to provide best customers and meet their expectation which is beneficial for them. Blue ocean strategy including the value innovation and the simultaneous pursuit of differentiation, low cost, key analytical tools and frameworks such as the strategy in the actions framework and the eliminate reduce raise create grid. This strategy address how an organization can create blue oceans by looking across the conventional boundaries of competition in the market. This helpful in observing the companies tend to engage in head-to-head competition in search of sustained profitable growth, functions, elements and its value chain method. Starbucks use this strategy help to identify the key features and dimension define the value of product and services in the market. Identifying the group of consumers that currently using exits products in the market, lower alternatives, and may be very different from the current customers while using new product and services that are similar at some fundamental level. Company make the products and services not for the demand of the consumers to less the value to targets the new costumers in marketplaces. This strategy used for innovate new products, demand and markets for its products and services.
Some advantage of blue ocean strategies are as aligned below:
- Blue Ocean strategy helps an firm to establish their business in the competitive market. It says that when there is a competition in any field of market there are some tools and structure by applying which the organization can compete with its competitors. They can apply those tools and structure and can set innovations which would beat other competitors in the same field. They can undergo changes by applying principles of Blue Ocean Strategy. If these things are followed or any company having these tools will be on the top of the list.
- It assists a company to reduce risk and make maximum profit. Its strategies are a way for success of a business. Blue Ocean Index tests your ideas and helps the firm to refresh it again and do correction in it. It answer any firm 3questions:- The first question which it answers that what's the appealing thing about your product? Second is that, are the prices of your items are relevant enough so that people could have an easy access to it? Third, what are the issues related to the adoption of the product or services and if there is any,what has the firm done to resolve it. The first question is related to the quality of the product and the second has to done with revenue of the item and the final question is related to the factors affecting its adoption.
- The Blue Ocean strategy give an idea that from where the start up should start. It states that every business needs to start with step wise, a proper sequence should be followed so that every problem or loophole can be caught at that particular period of time. It is a way to create substitute plan if first one fails and on the other hand through this the severe competition can be cracked out.
- It line up the strategy theory like profit, value and people and make sure that the ideas of the organization revolves around these 3 factors. For any success of idea its products and services should attract buyers. It should built a model that gives profit to the organization and they should motivate its employees so that they could better work in hard time and make maximum use of the resources. The idea should yield benefits to the company, its employees, buyers and its share holders. Blue ocean model is a way which is adopted by every company existing in the market today because it provide less risk environment.
- Market is flooded with thousands of companies and a tough competition exists today so these companies are Red Ocean companies. Red ocean companies are are bounded with rules and regulations which they cannot break. But in Blue Ocean the market is open for innovations and ideas because there are not any sort of rules. So company with innovative or any new start up will stand out differently and could set different benchmarks.
Summarizing the whole report it has been concluded that Innovation plays a vital role in the organisation as every enterprise need to do when they start up their new life of business with the innovation and effective strategies. Thus, transfer a innovative ideas into the various different structures for the main purpose of utilising the new development opportunities in the innovation. Starbucks is the best example in which they understand the innovation and blend of strategy.