Great article highlighting Starbucks, Leah!
Your blog post reminds me of our first case in class on Dominos Pizza. At one point, Dominos was considered a huge winner in the app/delivery space as they were an early adopter of app & ordering technology. But as competition moved quickly, other players such as UberEats and DoorDash threaten the competitive advantage these single-brand apps, such as Dominos, had developed. I sat in class wondering if Dominos could follow the Starbuck’s app model and develop a loyalty program, or if selling pizza vs. cappuccinos are just too different of business models?
Hi Reinaldo! I didn’t realize how dominate Intuit has been until your reference as them being the “Tom Brady of their industry”. Thanks for that great reference!
On a more serious note, I’m pretty shocked by the statistic that their R&D spend is 25% of their operating expenses. That sounds pretty high and I wonder how they efficiently deploy such a large amount of capital towards research. Besides the network effects, I would not guess their products’ competitive advantages to be defensible, so a high R&D spend must be necessary to remain relevant.
Thanks for sharing, Megan! I thought it was interesting that you included that IKEA partnered with JDA solutions in order to undergo its technology supply chain upgrade for its food division. As large incumbents, such as IKEA, figure out the best ways to use digital innovation to their advantage, I wonder which between the build, borrow or buy options will prove most valuable for these companies. In this case, IKEA choose to borrow expertise from JDA and it proved fruitful for them.