This paper "Strategic Position of Starbucks" investigates the question of Starbucks which is a US-based coffee chain company. It operates in more than sixty countries with a total of more than more than 20,500 stores worldwide. The company was established in 1971 in Seattle.Starbucks stores offer coffee beverages, cakes and bakery products. Starbucks is best known for their service. …
It also includes the effect of the external market drivers on the organization and how the company has designed it the marketing strategy to ensure its long-term sustainability.
Starbucks’ core competency is based on the premium positioning of its product line. The company focuses on delivering high-quality coffee beverages and snacks which includes cakes and other bakery products. Thus the company not only focuses on providing a good quality product but it also focuses on providing a unique experience to the customers. Offering a unique experience ensure the customers’ return. Starbuck’s competencies also include establishing a strong and close relationship with its suppliers. This, as a result, has helped the company to make overseas expansion and make certain strategic acquisitions.
The Porters generic strategy shows how the company has devised its marketing strategy in order to stay ahead of its competition. The parent brand Starbucks is positioned in the ‘Differentiation Strategy’ because it offers high-quality speciality coffee products along with a unique experience of the store’s ambience (Pretorius, 2008). This differentiating factor distinguishes the company from its rivals. The newly introduced brand by Starbuck called VIA offers instant coffee to the customers. Thus VIA is categorized under the Cost leadership and Differentiation category (Lee, 2012). Even though VIA acts as a low-cost alternative to premium Starbucks coffee, it still differentiates itself from its rivals owing to the brand valuation of the company. The company also offers gifts and brewing items, which falls under the focused differentiation category, because these products are aimed towards the genuine coffee lovers (Lee, 2012).
The likelihood of success of a firm can be assessed by the Bowman’s strategy clock. According to Faulkner and Bowman (1995), this model assesses a company’s current position and direction of progress based on eight categories. ...
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“Strategic Position of Starbucks Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.net/business/730743-case-study-of-starbucks-2052.
This paper talks about the current strategic position of the company and will discuss the basis and sustainability of its competitive advantage. A variety of key strategic issues presented in the case study will be elaborated alongside with their impact on long term success of Starbucks. In the end suggestions will be given as to how the company can improve and solve the issues it is currently facing.
The report starts by describing the strategic position of Starbucks and this encompasses a description of products and services offered markets, key stakeholders and strategic purpose which includes mission and vision /strategic intent. The report will also analyse the internal and external environmental factors affecting the operations of Starbucks.
The author states that the original mission of the company was to appear unique; the way they delivered their services, the way they handled their workers, the relaxing atmosphere the customers got from every store belonging to Starbucks changed drastically. However, Starbucks uniqueness has changed.
NAL ENVIRONMENT 27 STRATEGIC FIT 29 CONCLUSION 30 Reference list 31 Appendix 34 INTRODUCTION Starbucks offer a specialty coffee business that roasts, markets and retails premier coffee with operations in more than 50 countries (Rein, 2012). Since inception in 1985, Starbucks has constantly been adding to its credit expansion with global presence as premium coffee by developing the successful the strategic fits between its resource and critical success factors.
Despite of the high price, it’s the taste and ambience which bring customers day after day inside the shops of Starbucks. The stores offer a cheerful, friendly and optimistic environment. Also the supportive staffs help customers to solve any kind of issues pertaining to the quality of coffee or services offered (Schultz and Gordon, 2011).
Research did not uncover any information that would indicate Starbucks is prepared for changes in pricing that is occurring in a rising-cost supply chain or in an environment where dynamic pricing is used by competition to gain price sensitive buyer interest.
According to the report Volkswagen has been one of the early entrants in the automobile markets of China. Since then the company has grown in stature and has gained 30% of the market share in China. Over the course of the study various strategic and analytical tools such as PEST, Porter’s Five Force has been used.
The company has a mission of actively involving themselves in creating a good neighborhood through the provision of a venue where people can convene and improve their social relationships (Winter & Szulanski, 2001). They also aim at making sure that they involve their stakeholders in all their advancements and success.
5 Pages(750 words)Research Paper
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