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Case 1 - Starbucks Corporation Analysis - 1
Case 1 - Starbucks Corporation Analysis - 1
Starbucks' core strategy revolves around crafting the "Starbucks Experience" which goes
beyond serving great coffee to connect with customers on an emotional level. Key elements
include premium coffee beans, engaged employees, strong community ties, and carefully
designed stores.
As a part of corporation strategy, Starbucks focus on “creating the best possible espresso
coffee” by sourcing the best beans, roasting them meticulously, and making a positive
impact on the lives of coffee growers. On the other hand, creating a social place for people
to experience other than “home and work”. On the other hand, the corporation created a
unique design and layout for Starbucks and diversified its business model by expanding its
menu in order to enhance the consumer experience and satisfaction. Other than that,
Starbucks creates new strategies and business models as per changed market environment
to increase its share such as drive-through, technology update, expanding nationally and
internationally either as company or licensed partners, mobile apps, K-cups, etc.
The overall coherence of Starbucks’ strategy in terms of its fit with the
company’s external and internal environments and the internal consistency
of the strategy
Starbucks Corporation's strategy has evolved significantly over its history, and analyzing its
coherence in terms of fit with the company's external and internal environments and
internal consistency is crucial. Starbucks' strategy reflects its commitment to the Starbucks
Experience, ethical business practices, diversification, and technological innovation. The
company has demonstrated adaptability and a strong focus on aligning its strategy with
changing consumer preferences and emerging markets.
Starbucks went through a significant leadership change when Howard Schultz handed over
the CEO position to Kevin Johnson. The transition from a “founder-led to a founder-inspired
company” can pose challenges, but it allows for continuity in the company's mission and
values. Starbucks has been the leader of using technology at the sector to enhance the
customer experience, with features like mobile payments and loyalty programs and this
strategy supported with the appointment of a CEO with a background.
On the other hand, Starbucks has diversified its product offerings, including food, music,
books, and videos, and introduced various store formats such as Starbucks Reserve to adapt
changing consumer preferences and expanding the reach to a broader range of consumers
was part of s successful strategy as well. At the same time, Starbucks has adapted its store
management models to include licensing agreements with local operators, reflecting
flexibility in its approach.
For its shareholders, Starbucks intend to maximize shareholder value by generating profits,
increasing share prices. The company's success in terms of revenue growth, profitability,
and stock price performance has been a priority, as evident in the financial results and stock
price records mentioned in the provided text. Starbucks create strategies such as
diversifying its menu and adapting market expectations can be seen as a proof of it.
On the other hand, creating “Starbucks Experience”, environmental sensitivity,
technological steps, employee involvement and many other strategies mentioned above can
be seen as a proof of Starbucks operate in the interest of its stakeholders.
Due to Starbucks' international expansion strategy, the company needed to adapt to the
regulations of various countries accordingly.
Brand reputation was another threat as well. Gradually expanding and growing, creating
diverse menu, education of new labors, service quality, or incident such as Philadelphia
which mentioned in the article could affect the “Starbucks Experience” reputation seriously.