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The case examines the century-old lunch delivery service of the Dabbawalas in Mumbai, India, which is known for its remarkable operational efficiency and precision. In operation since 1890, the Dabbawala system relies on meticulous coordination and time-tested processes, ensuring that about 5,000 semiliterate workers deliver approximately 200,000 lunchboxes daily to officegoers across Mumbai. They operate in small teams, each managing its customers, finances, and logistics. The delivery process involves multiple hand-offs, and all this is accomplished with an exceptionally low error rate. However, despite attempting several initiatives in response to these two challenges, they have struggled to adopt them across the organization, partly due to the decentralized nature of the organization and a lack of strategic coherence. The case highlights the need for strong leadership and strategic direction to navigate the disruptive changes. A decentralized organizational structure, although effective for operational efficiency, poses challenges for innovation and scaling new initiatives. To remain competitive, the Dabbawala leadership must balance maintenance of their traditional strengths with adoption of new strategies.
Learning Objectives
After reading this, the students will be able to:
- Analyze the impact of disruptive innovations on traditional business models.
- Explore strategies to respond to disruptive innovations and maintain competitive advantage.
- Understand the role of leadership and organizational structure in fostering innovation.