Starbucks - business-level strategy
Problem # 2 – Starbucks
Starbucks is and will continue to be one of the largest distributers of a cup of coffee today and into the future. The Starbucks mission to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” directly correlates with the experience a customer has in each store. They have many ways to differentiate in comparison to competitors because they provide an experience while shopping for a coffee allowing them to charge a premium price.
The company has a focus on innovation through an emphasis of introducing new products and coffees such as “instant coffee” Via which generated a large sales growth of over 200 million. These new products consistently help Starbucks evolve as a company and continue to provide customers with a unique experience. This is a competitive advantage in which they take full advantage of as customers enjoy the experience, high quality product and a friendly staff atmosphere each time they enter a store. The business-level strategy has embraced a differentiation that is linked to providing a focused product to a specific niche or group of customers. This allows them to provide tailored lines of coffee or tea along with the premium price, which has no impact on Starbucks customer selection. The relationship’s Starbucks has built with customers is essential to their continued success and growth. Starbucks provides a superior coffee that has high value with their customer base. They focus on branding the image and product via word of mouth allowing it to but promoted by there supporting customers. Starbucks understands the needs and wants of it’s customers such as allowing them to “pay for their coffee” via the I-phone knowing that a large base of customers would utilize this procedure. Understanding their target market is a vital strategy they have used to grow as a company globally across the world. This is a very large part of the continued success as coffee/tea is
Starbucks is and will continue to be one of the largest distributers of a cup of coffee today and into the future. The Starbucks mission to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” directly correlates with the experience a customer has in each store. They have many ways to differentiate in comparison to competitors because they provide an experience while shopping for a coffee allowing them to charge a premium price.
The company has a focus on innovation through an emphasis of introducing new products and coffees such as “instant coffee” Via which generated a large sales growth of over 200 million. These new products consistently help Starbucks evolve as a company and continue to provide customers with a unique experience. This is a competitive advantage in which they take full advantage of as customers enjoy the experience, high quality product and a friendly staff atmosphere each time they enter a store. The business-level strategy has embraced a differentiation that is linked to providing a focused product to a specific niche or group of customers. This allows them to provide tailored lines of coffee or tea along with the premium price, which has no impact on Starbucks customer selection. The relationship’s Starbucks has built with customers is essential to their continued success and growth. Starbucks provides a superior coffee that has high value with their customer base. They focus on branding the image and product via word of mouth allowing it to but promoted by there supporting customers. Starbucks understands the needs and wants of it’s customers such as allowing them to “pay for their coffee” via the I-phone knowing that a large base of customers would utilize this procedure. Understanding their target market is a vital strategy they have used to grow as a company globally across the world. This is a very large part of the continued success as coffee/tea is
References: Hitt, Michael, Hoskinsson, Robert, Ireland, D. ( 2011) Strategic Management: Competitiveness & Globalization: Concepts ( 10 ed.) Cengage Learning.