Case Study Analysis: Stack

Stack is a subscription service that sends out a different independent magazine every month.  Subscribers never know what they're going to get next, but they do know it will be a beautiful, intelligent magazine they probably otherwise wouldn't have seen. Innovation is driven by the ability to see connections, to spot opportunities and to take advantage of them (Tidd & Bessant, 2013).  This is the process that Steven Watson, founder of Stack, followed in order to create his company. PEST In terms of political factors, established companies are having to make drastic business model changes. They also have a need to be current and innovative. Economically, many companies are struggling to finance the necessary changes in order to be innovative. Socially, peoples' needs are changing.  Business need to consider the ESP as well as the USP. In terms of technological factors, audiences' reading experiences have been enhanced by the dawn of new technology.  The time spent reading magazines has risen with digital publications. The Four P's Product - Stack not only provides a product, it provides a service.  It is selling surprise, which is the real value of the business. Process - One independent magazine is sent out to 1300 subscribers every month and each time they receive a different magazine.  It is a means of distribution. Position - Stack has a multi-sided market.  To one side of the market, the business offers distribution.  To the other side,  it offers serendipity. Paradigm - Stack has established itself as a business that offers surprise and that is what makes it different from every other subscription service within the industry. Radical or Incremental? Radical - the creation of Stack involved radical innovation, as it was introduced through a radical idea that was different to every other business within the industry. Incremental - the business was created upon the basis of making improvements and developing it based on existing services. The idea for Stack began through innovation and throughout its creative process it has continued to be innovative.  Stack will continue to grow, develop and be successful and innovative in the future. You can see a short presentation on this innovative business here