Starbucks Strategies



Starbucks Strategies

Introduction

Starbuck Corporation is an American coffee company which operates globally and having 20,366 stores in the United States, China, United Kingdom, Japan, South Korea, Thailand, Philippines, Mexico, and in other countries. The company base office is situated in Seattle. Starbucks claims that it purchases high class of coffee beans and its coffee houses are considered the best place for coffee by the coffee lovers from all around the world. Other than coffee stuff, Starbucks offers a premium selection of teas, pastries and other treats for taste buds of people. The mission statement of Starbucks is: “to motivate and take care of the human spirit - one being, one cup and one neighborhood at an occasion.” The daily basis principal of Starbucks includes coffee, its business partners, customers, coffee stores, neighborhoods, and shareholders. The firm believes that these blending combinations bring a long term success and rewards and the firm is completely responsible for taking each combination in a correct status (Starbucks, 2006).

Discussion

Business-level Strategies

Product Differentiation

Starbucks markets are generally considered as homogenous because particular products of coffee are offered in their market segments which are looking for specific coffee products. A heterogeneous product line is offered by Starbucks which allows them to congregate various needs of market segments. The mission statement of Starbucks is to become the leading supplier of fine coffee, and for this purpose they are required to enhance their segmentation of target market. All markets of Starbucks, international, national and regional are increasing, which results in a record of worldwide openings of stores 2,199 as per in fiscal year 2006 (Munoz, Lorenza, 2006). The homogenous offerings of the target market in each of these distinct markets, does not provide Starbucks the need to produce a exclusive marketing mix in order to line up with their mission statement for each market.

Corporate-level Strategies

Starbucks Diversification

Starbucks is famous for its diverse variety of food and drinks. Starbucks is not just a one coffee store. Many choices are given by Starbucks and provide customers with different variety of drinks to select from (Adamy, Janet, 2006). A customer can get items of food which ranges from chocolate and apples to old-fashioned donuts. Indeed, Starbucks has begun to go down the healthier track, with introducing yogurt parfaits, fruits and salads (Horovitz, 2006). However, it was realized by Starbucks that they need to address a few of areas for the further improvement of image of their brand. CD's and DVD's are also being sold at Starbucks stores. They did a great job in doing so because they know that variety can attract a large number of customers towards their brand (Lamb, Hair, Mcdaniel, 2006). New opportunities are created by the process of diversification and customers are able to buy a variety of products in order to ensemble individual needs, and increase sales in the process.

Competitive Environment

There are a number of things in business which may be controlled, and still there are several factors which appear as being out of ...