Starbucks Case Study

Starbucks Case Study

Strategic Vision

Since its founding in 1987, Starbucks has been the premier coffee roaster and retailer of the world. Their stores operate in more than 50 countries. It is a rapidly growing company and it is under the leadership of Howard Schultz, it continues to evolve. The strategic vision of Starbucks “To establish Starbucks as the most recognized and respected brand in the world”. Starbuck has changed considerably, in 2010, as a business, but the initial mission is still part of the process. However, more commitment is expressed by Starbucks not only towards employees and customer, but also towards the farmer, community, and the whole world.

From a single store, Starbucks has grown to have a global presence and to keep on its growth sustainable, there is still room for present strategic vision of Schultz to undergo further evolution.

Competitive Strategies

Low-cost provider strategy, best-cost provider strategy, focused low-cost strategy, broad differentiation strategy and focused differentiation strategy are five generic competitive strategies that can be implemented. The strategy that is used by Starbucks is broad differentiation in which it aspires to differentiate its product offerings from rivals' with features that attracts a large number of consumers. Starbucks offers a range of product options like coffee, lattes, blended drinks, skinny lattes, iced drinks, etc. For providing more options for their consumers, water, fruit cups and bakery items are also provided to the consumers. It is due to the reason that the key market characteristic for the differentiation strategy is that needs and preferences of buyers are very diverse and with a standardized offering of product, it cannot be satisfied. If a differentiation strategy is implemented successfully then a firm is able to accomplish one of the following: increase unit sales, control a premium price for its products, and gain brand loyalty. Some of the products of Starbucks have highest prices and people tend to be particularly loyal to whatsoever coffee they are accustomed to purchasing, due to their trust on the quality.

Implementation & Execution of the Company's Strategy

Starbucks has a number of business principles that are essential for the success of the company. High-class consumer service and fine quality products are the most important priorities of Starbucks. In order to provide premium products and services to its consumer, key policies that have been implemented by Starbucks include: stores expansion, international expansion practices, staff training, ethical business practices and coffee roasting practices. One of the key draws to consumers, since the starting off of Starbucks, is its first-class consumer service and store ambiance on the whole. Consumers are able to meet with friends or just sit and read a newspaper with their morning coffee. With the proper training of its employees, by positive in store experience providing them pleasant workplace environment, Starbucks actually gives its consumers a positive in store experience.

Evaluation of Social Responsibility Strategy of Starbucks

Starbucks carries out its business operations in a way that is both environmentally and socially conscious. With the essence of building a company with ...