case study of Starbucks Corporation

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Freshman (College 1st year) ・Business ・MLA

Starbucks Corporation is a global corporation whose main business is the distribution of high-quality food and beverage goods in the world. As a business practice, Starbucks sells a wide range of brands. In addition, Company customizes each of its channels to meet the social and cultural needs of the local community, making them transnational in nature. In addition, Starbucks uses a concentrated consumer differentiation approach by selling high-quality food and beverage goods to the niche market.

Case Analysis

Starbucks is renowned worldwide mostly for its high-quality premium coffee. However, in the last decade or so, the firm has relied heavily on product variety as a strategy to lure more customers to its coffee outlets. It has required a fresh fruit juice company, a bakery and also diversified into selling tea. The new products offered are of a high-quality just like the critically acclaimed Starbucks coffee. Furthermore, the company ensures the customer preferences are catered for by employing the latest technology to keep track of customers and recently it also rolled out loyalty programs to reward ones. However, Starbucks management programs have many hiccups that lead to long customer lines which have left many clients disgruntled. Although the firm is a global brand, it ensures that its outlets are tailored to suit the preferences of the local consumer. Such a strategy guarantees that the client feels that the Starbucks experience is designed for his or her. This is exemplified most by the decor and seating arrangements of Starbucks coffee outlets. By offering its customers an energy drink made from coffee extracts, the firm shows that it is a leader in innovation. Such innovations ensure that Starbucks keeps attracting new customer segments while still offering high-quality products. Even though the firm is aggressive in its product diversification program, it still keeps in touch with its main customers, who are coffee consumers, through the provision of high-quality premium coffee and introduction of new blends like the lighter roast one to cater for the diversified tastes of these clients.

Recommendations

Starbucks needs to ensure their customers are served quickly and efficiently. This could be done by ironing out the issues with Playbook management system. This will also ensure that customer service is of the same high standards as the products they sell. This could be improved further by employing first class mobile payment services and other digital offers. By acquiring a first class digital service company, Starbucks could then set about providing its customers with excellent digital services that match the high standards of their products. Starbucks core market in North America is reaching a saturation point. To counter this, the company could continue to expand its market base by expanding more actively in promising markets in China, Brazil, and India. By employing disciplined aggressive expansion, Starbucks can avoid the pitfalls it suffered during the last expansion feat. Furthermore, Starbucks could acquire a fully-fledged carbonated drinks company whereby it could produce high-quality premium drinks as well as open beer outlets in each and every coffee place that would serve high-quality alcoholic drinks. Such an addition to the range of products provided would mark a major shift to the kind of goods Starbucks offers. It would also open a completely new customer segment for the company. Lastly, Starbucks could embrace e-commerce in its entirety and have its products available online. This would ensure that Starbucks not only remains competitive but that it is also responsive to the needs of its current and future customers.

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