Part 1 – Starbucks Business Report
Introduction to Starbucks and its competitive position
Starbucks is the leading profile that is serving quality coffee and other snacks premium prices. The business was founded in year 1971 and with observing ups and downs the business is on the competitive position with having more than 28,000 stores in worldwide locations. The main products of Starbucks mainly include coffee, espresso caffe, cold drinks, limited snacks and other tea products (About Starbucks, 2018). And also some of the offerings by Starbucks are seasonal. Starbucks also have competitive advantage in terms of offering pleasant and comfortable appearance at stores that attracts millions of customers. In 2018, it operates with effective revenues of US $24.71 billion and has large pool of employees of around 290,000 (Profile of Starbucks, 2018). Starbucks keeps its brand value, quality and its goodwill on the stake. For this, it provides effective services and convenience to customers by offering timely delivery.
Vision of Starbucks is based on not only serving the excellent coffee but engage customers at an emotional level. For this it also offers value added services in the form of Wi-Fi, working environment, pleasant evening experience, soft music environment, etc. In addition, Starbucks have relevant responsibility towards maintaining community relations and working for the social purpose (Geereddy, 2013). Also have effective application of block chain technology; Starbucks is able to maintain its operative functions and also mobile applications offer relevant discounts to the customers.
The top competitors of Starbucks mainly include Dunkin Donuts, Mc Donald’s Mc cafe, Cost Coffee, Luckin Coffee, etc. Starbucks have currently positioned itself on providing high experience and generally offers premium prices by targeting rich class customers. Starbucks offers the finest and quality coffees that attract customers (Competitive advantage of Starbucks, 2018). Starbucks generally apply the strategy of differentiation that is based on delivering unique and valuable products. The customer is attracted through well designed stores, good ambience and has support of well trained staff. With following the differentiation strategy of premium and coffee drinking adds to key competitive advantage. In 2018, Starbucks is also listed among the best places to work as it provides such environment (Jones and Robinson, 2012).
Starbucks generally communicate with the customers with having the well trained and qualified staff that provide necessary information about the coffee menu. Also according to expectation and needs of the customers and accordingly products are offered. Starbucks communication strategy applies through advertising, launch offers, sales promotion and also it maintains public relations and expenditure. These act as the sources to mainly attract customers. Starbucks mainly appeal to customers with hip and contemporary design and its advertising and decor. It provides the new taste of coffee to the customers and also maintains consistency in decor and layout. IT also maintains effective connections with customers through the use of social media and official website (Taecharungroj, 2017). It maintains effective consistency in maintaining its regular presence by posting photos and videos and also website is updated regularly to provide reliable service to the customers.
Books and Journals
Alderman, L., 2012. In Europe, Starbucks adjusts to a café culture. New York Times.
Brooks, B.W., 2012. Starbucks: maintaining a clear position. Journal of the International Academy for Case Studies, 18(3), p.39.
Garthwaite, C., Busse, M., Brown, J. and Merkley, G., 2017. Starbucks: A story of growth. Kellogg School of Management Cases, pp.1-20.
Geereddy, N., 2013. Strategic analysis of Starbucks corporation. Harward [Електронний ресурс].–Режим доступу: http://scholar. harvard. edu/files/nithingeereddy/files/starbucks_ case_analysis. pdf.
Gong, Y., 2013. Rationale Behind Operational Globalization. In Global Operations Strategy (pp. 69-98). Springer, Berlin, Heidelberg.
Hutt, R.W., 2016. Reputation on the line: the Starbucks cases. Journal of Business Strategy, 37(1), pp.19-26.
Jianfei, X., 2014. Analysis of Starbucks Employees Operating Philosophy. International Journal of Business and Social Science, 5(6).
Jones, P. and Robinson, P., 2012. Operations management. Oxford University Press.
Nguyen, H., 2016. Supplier Selection Process in Café Industry: Case: X Coffee vs. Starbucks.
Rothaermel, F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Schultz, H., 2012. Pour your heart into it: How Starbucks built a company one cup at a time. Hachette UK.
Table, S., 2014. Starbucks Coffee Company.
Taecharungroj, V., 2017. Starbucks’ marketing communications strategy on Twitter. Journal of Marketing Communications, 23(6), pp.552-571.