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Costa Coffee (A): A Proposal to Build the Next Generation Self-serve Espresso Bar


Economics, Strategy and Entrepreneurship

Authors / Editors

Birkinshaw J

Publication Year



This is part of a case series. The case focuses on how a senior executive assesses the opportunity to drive innovation in his division. Jim Slater, Managing Director of Costa Enterprises, is thinking about a management consultant's offer to build the next generation coffee machine for his division. The company's business model has historically been built on incremental improvements, but this proposal would involve a 'step change' in how new products are developed. Costa Enterprises rolls out self-service vending machines ('concessions') that deliver quality coffee to customers in areas not served by premium high street cafes. The proposal Slater is considering is to build the next generation concession. However, handing over control of such an important, venture to an outsider seems like a significant risk for Slater to take.

Topic List

Business model innovation, Change management, Leadership, New product launch



Publication Event Date


LBS Case Number



United Kingdom

Publication Organisation Size


Available on ECCH


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