Case study of Starbucks Corporation

Freshman (College 1st year) ・Business ・MLA

Starbucks Corporation

Starbucks Corporation is a global corporation whose main industry is providing high-quality food and beverage goods around the world. As a business practice, Starbucks sells a wide range of food and beverage items. In addition, Starbucks customizes each of its outlets to meet the social and cultural needs of the local community, making them transnational in nature. In addition, Starbucks implements a concentrated customer differentiation approach by selling high-quality food and beverage offerings to the niche consumer.

Case Analysis

Starbucks is renowned worldwide mostly for its high-quality premium coffee. However, in the last decade or so, Starbucks has relied heavily on product diversification as a strategy to lure more customers to its coffee outlets. It has acquired 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, Starbucks 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 customers. However, Starbucks management programs have many hiccups that lead to long customer lines which have left many customers disgruntled. Although Starbucks is a global brand, it ensures that its outlets are tailored to suit the preferences of the local consumer. Such a strategy ensures that the consumer feels that the Starbucks experience is tailor made for them. This is exemplified most by the decor and sitting arrangements of Starbucks coffee outlets. By offering its customers an energy drink made from coffee extracts, Starbucks 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 Starbucks is aggressive in its product diversification program, it still keeps in touch with its main customers, who are coffee consumers, through provision of high quality premium coffee and introduction of new blends of coffee like the lighter roast coffee to cater for the diversified tastes of these customers.


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 in the same high standards as the products they sell. This could be improved further by employing first class mobile payment services and other digital services. 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, Starbucks could continue to expand its market base by expanding more aggressively 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 outlet that would serve high quality alcoholic drinks. Such an addition in the range of products provided would mark a major shift to the kind of products Starbucks offers. It would also open a completely new customer segment for Starbucks. 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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