Strategic Analysis Starbucks Essays For Scholarships

An Analysis of Starbucks' Strategic Choices

749 WordsJan 14th, 20183 Pages

Starbucks aim to compete with a number of key strengths. These include high quality products, delivering a consistent customer experience worldwide, and having management systems that are easy to duplicate anywhere. The move to emphasize China in the company's growth strategy is a good example of a recent move to help the company accomplish its mission. Starbucks has taken the time to get to know the market (Wang, 2012) and pour resources into growing the Chinese market in the hopes that it will be the company's #2 market by 2014 (Starbucks, 2012). Two other moves that the company has made recently that will help it to accomplish strong growth in the coming years are the acquisitions of Teavana for tea shops (Roche, 2012) and Evolution Fresh for juice (Baertlein, 2012). These moves position Starbucks to take advantages of its capabilities in building franchise systems that work, creating a comfortable customer in-store experience and in franchising out management systems around the world. If Starbucks can be successful with either of these ventures, it will be not only a major coffee player but might win in these other markets as well, giving it an opportunity for more growth in the Western markets, but also in markets with a more traditional tea culture. This diversification strategy is in line with recent strategic moves made by…

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Starbucks 1. Introduction Starbucks distinguishes itself by focusing on creating and sustaining its own ‘coffee culture’. It has long been known as a ‘third place’ other than home and workplace. It serves not only quality coffee products but distinctive customer experience. With considerable research on the strategic positioning of Starbucks, this paper will introduce the history and the present of Starbucks as well as its corporate achievements before analyzing its brand value and strategic positioning, with focus on its competition and marketing strategies. Subsequently, the influences of external factors on Starbucks will be examined through PEST analysis and Porter's Five Forces Model analysis. Next parts will be concerned with the question of how Starbucks boost the value of its strategic position. Finally, the paper will be reviewed and the comments on the sustainability of Starbucks’ strategic positioning provided. 2. Strategic Position Identification 2.1 Porter’s Generic Strategies Porter suggests that an organization can only compete in one of three areas. These are cost leadership, differentiation and focus. It details the interaction between cost minimization strategies, product differentiation strategies, and market focus strategies (Michael, 1980). Starbucks dispenses with cost leadership strategy while 3


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