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Starbucks Case Questions Essay

914 words - 4 pages

1. What is Starbucks’ strategy?
Starbucks’s sustainable competitive advantage in maintaining a well known brand in the specialty coffee industry is due to their well devised and implemented strategy. Starbucks understands their consumer’s needs and utilizes their core competency in its people and coffee byin establishing their strategy in providing quality coffee and a memorable experience through a differentiation broad market presence. These are some of their core values and purpose as a guidance and foundation in ensuring that Starbucks continuously meet those standards and remain a competitive advantage in the industry. With these in mind, it is important for Starbucks to continue to ...view middle of the document...

Besides,In addition Starbucks own all of its retail outlets and also host licensing arrangements.

Differentiators - Starbucks is effective in differentiating themselves from competitors in the speciality coffee area. By providing not only quality coffee from selecting the finest beans to their special roasting and blending method; they also provide customer service from the well trained customers to the overall experience. Their strategy in increasing brand awareness by making this experience accessible is notable as often retail outlets are located within close proximity to one another. Whereas competitors often just focus on main traffic areas. In addition, by partnering with other leading companies such as …., Starbucks increases exposure to their brand.

Staging -Starbucks staging is fairly quick as they expect their real estate staff to “generate 20 to 40 solid stores per month” to meet their goal of “2000 stores by 2000”. In addition their sequence of major market include expanding to the “Main and Main of different regions within a city”

Economic Logic -Profits are mainly generated from the sale of coffee beverages (including tea, and ready-to go drinks), whole beans, JV products (e.g. ice cream). In addition Ttheir merchandizing ofin coffee mugs with their logos, coffee maker etc not only increase sale but also promote the company’s image and popularity.

Starbucks’s rapid increase in staging more stores in main areas is aligned with their strategy in diversifying their vehicle method. This includes developing their own espresso carts Doppio to having agreements with leading companies in serving their product. As well, this staging approach leads to their differential approach in opening stores in close proximity to one another to increase the brand awareness as well as provide consumers easy access to the experience. This will allow their products to reach their various arena locations and consumers effectively....

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