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Mgt 4199 Mini Case: Starbucks

Autor:   •  February 7, 2019  •  1,536 Words (7 Pages)  •  69 Views

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3. Continuous improvement. Every time they want to present a new product, Starbucks is looking for customers to give their point of view about this new product while being taught to distinguish and appreciate the smells, flavors and textures of a good coffee.

4. Expansion model. For founder of the Starbucks model, Howard Schultz, it was always key to generate a rapid expansion of the chain and model so he has admitted that McDonald's has been a source of inspiration for his growth model.

5. A premium approach. Despite being inspired by other consecrated franchises, this chain always looked for the way to differentiate itself in its vision. The three most distinguishing features are: being very selective with their franchisees, selling premium products to middle-upper-class urban clients and not doing TV advertising (Forbes).

6. Offer an experience. At Starbucks you'll find more than the best coffee, people you love to meet, top notch music and a comfortable place to meet someone.

Starbucks has a sustainable competitive advantage in the market and over its competitors because it has managed to position itself in the minds of the people. If anyone thinks of a place to go for coffee, the first option that comes to mind is Starbucks. This is a position that the company achieved with all its different ways they used to differentiate themselves. Although many copycats appeared as is the case of Juan Valdez in South America, a franchise with all the style of Starbucks having coffee as its main product, although Juan Valdez did not get to position higher than Starbucks. The value that Starbucks has achieved for the general public is something that will be very difficult to imitate and achieve by some other companies in the same sector.

Even as the company concentrated on diversifying its business away from coffee, to its consumer product goods segment and food, it came out with new and innovative products, such as substituting dairy with soy-milk, or almond-milk. Furthermore, according to the research firm Sense360, the traffic at Starbucks stores has improved considerably in the recent months, despite a slowdown in the restaurant industry. All of this contributed towards dispelling some of the negative sentiment which had formed around the company (Forbes).

Plus, many more companies will be able to appear following the Starbucks business concept but as it has happened before; Starbucks is a company that uses strategies fast and at the right time.

Starbucks also adapted to some markets as is the case in China; they understood when they entered the market that it was not about the coffee initially. It was about reviving a "tea house culture" that had existed for thousands of years. Starbucks' global success was based on being the "third place" between home and work and brought that ethos to China but with a modern, Western, upscale sensibility (Forbes). This helped Starbucks to get access to the Chinese market faster.

Works Cited

Forbes, Forbes Magazine,

Starbucks Corporation - Investor Relations,

“SWOT Analysis of Starbucks, the World's Leading Coffeehouse Chain.” PESTLE Analysis, 16 June 2016,


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