Presents an extensive strategical analysis of Starbucks, the coffee specialty chain.
Written in 2009; 4,710 words; 10 sources; APA; $ 121.95
Paper Summary:
This paper explains that Starbucks' competitive advantage is the strategy positioning of its coffee products within stores that stress service and a home-like ambiance. The paper relates that, after its initial success, Starbucks faced a great threat from its competitive rivals. The paper then examines the company's alternative strategies of increasing labor hours, product and service innovations, automation of the mixing processes and retail expansion. After evaluating the potential impact on sales and profitability of each alternative, the author recommends the expansion of the number of retail stores.
Table of Contents:
Executive Summary
Situation Analysis
Evaluation of Alternatives
Increasing Labor Hours
Retail Expansion
Product and Service Innovation
Automation of Mixing Processes
Recommendations
Conclusion
From the Paper:
"Service innovation had greater potential in this respect as it would not require partner acceptance and would not interfere with their speed of service. In this respect, the introduction of the stored value card had already proved to be a great success. The management of the company might consider similar innovations. This will help with formulating new positioning strategies that will enhance Starbucks' competitive edge. The critical need was to position the company differently from the smaller coffee chains. Currently there were no such positioning strategies."
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