Tackling traditional industries: an analysis on innovative startups' success factors

Abstract

The growth of startups in recent years has led to the emergence of some truly innovative companies that are shaking up traditional businesses. These startups are rethinking how businesses operate, utilizing technology to create new models that are more efficient and effective. However, startups operating in industries where consumer habits are strong and rooted in tradition have unique challenges to deal with. This research takes into account food, fashion, and home goods sectors, which are representative of traditional industries where consumers have long-standing brand loyalties and are resistant to change. The research aims to identify the key factors that contribute to the success of startups in traditional stagnated industries and to understand which strategies are most effective in building a sustainable competitive advantage. The focus of the research lies in the food system through the lens of the innovative traction of the foodtech industry. This has been done by means of a multiple case study involving a variety of succesful startups in the German foodtech ecosystem, considered to be among the most innovative and growing throughout Europe.