The Business-Level Strategy of Starbucks

The Starbucks coffee shop chain is ubiquitous and one of the fastest-growing food and beverage companies. Starbucks was founded in 1971 by two passionate coffee lovers. It was planned to create a company to purchase coffee beans, roast them, and sell to other companies at the initial stage. Starbucks is currently experiencing a period of exceptional growth, with a small coffee shop opening almost every day somewhere in the world. One of Starbucks’ phenomenal success components is a well-thought-out and executed strategy.

The opening of each new cafe, which is selected most carefully, is preceded by the process of discussion and implementation of all the actions taken. In addition, through a long-term advertising campaign and a commitment to quality, Starbucks management has been able to create a culture of coffee consumption for millions of consumers and significantly increase the level of consumption of this product. Throughout its development, the company absorbed competitors: in 1986, it acquired its only competitor in the market – the company “Peet’s Coffe & Tea”(Nyandat, 2019). Next, Starbucks delivered a significant increase in revenue from its existing customers: a strategy to develop a range of related products, particularly cups thermoses. Among its priorities, the company also raises social, environmental issues, such as helping small coffee producers in extreme countries: extracting coffee with ethical standards, respect for the environment, and active participation in farming communities.

Starbucks has every advantage to continue to be at the forefront of the market, but improvements can be made to any system. In the case of Starbucks, the best strategy would be to continue to develop in the international market, opening more and more coffee shops in different parts of the world. Another strategy that will increase profits can be to expand the franchise system. Despite concerns about deteriorating customer service and the difficulty of controlling franchise outlets, making it easier to qualify to open a Starbucks coffee shop will help both increase company profits and support entrepreneurs. Starbucks stocked supermarket shelves with bottled Frappuccino and Starbucks ice cream. The company will become more recognizable and popular if the range of products presented in supermarkets is expanded: more types of ready-made coffee and snacks.

Reference

Nyandat, C. (2019). Starbucks international strategy. GRIN Verlag.

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