Starbucks' Strategy in Relation to Finance Performance, Environment, and Stakeholders

Case Analysis- Starbucks
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Case Analysis –Starbucks
1 What is Starbucks ’ Strategy?
Starbucks adopted a differentiation strategy as one of the effective ways of expediting its business operations. The core objective of the management is to differentiate the company from close rivals in the market. Over the years, the company has utilized differential resources policies and differential sourcing to differentiate its products to have a competitive edge in the market. For example, while Dunkin Donuts and McDonalds focus on low costs, Starbucks uses a friendly ambiance to ensure that customers can enjoy the taste of its products (Chuang, 2019). In addition, the management modifies its products to ensure they are different from close rivals on a long-term basis. For instance, Starbucks focuses on products and unique ingredients in providing tasty products to customers. Equally, the company adjusts its supply chain by sourcing the finest ingredients.
Starbucks utilizes various differentiation strategies to attain its core objective of having a competitive edge in the market. Firstly, product development strategy is one of the company’s mechanisms to develop new products while increasing its profitability (Wu, 2017). Over the years, the company has introduced new products such as sodas to meet the demand from customers. Equally, Starbucks has introduced a new product mix to gain the trust of the customers. As a result, the company has attained significant growth through establishing cafes in different locations. Thus, through product differentiation, Starbucks meets the demand and preferences of customers.
Secondly, Starbucks utilizes a market development strategy in promoting its products to new and existing customers. The marketing team analyses customers’ tastes and market segments to increase the number of customers and profitability. Notably, the company utilizes social media platforms like Twitter and Facebook to create awareness about the newly opened joints in various countries. As a result, customers make effective relations while interacting (Azriuddin et al., 2020). Equally, Starbucks has launched new payment strategies to address cash payments issues, such as Starbucks cards and debit cards. Starbucks has launched websites and applications to provide timely online services to customers in the current era of technological innovations.
Thirdly, Starbucks has increased the number of stores and cafes in different countries to increase sales volume. The main focus is to increase coffee cafes on drive-thrus rather than dine-in restaurants. Through the strategy, the company has increased its overall store penetration. Starbucks’ stores are located away from the workplace and home to ensure that customers enjoy their meals and drinks in a comfortable setting. Notably, Starbucks provides free Wi-Fi to the customers to ensure they can purchase more and stay for extended periods. In addition, the company sells high-quality coffee to attract more customers. As a result, Starbucks maintains its competitive edge by providing customers with unique ingredients and products.
2 Assess Starbuck’s Strategy in relation to
* Starbuck’s...