Starbucks

Paper Summary:

This paper explains that, in researching and discussing the five strategic components of Starbucks' external environment and its relative competitive strength in each one, it is evident that Starbucks has become an industry leader. The author stresses that this leadership is because of Starbucks' effective responses to external challenges. The paper relates that, in terms of rival firm activities, market positioning, competitive pressures from suppliers and the emergence of substitute products from outside the industry, Starbucks has responded consistently by taking strategic advantage of its strengths.

From the Paper:

"In researching and discussing the five strategic components of Starbucks' external environment and its relative competitive strength in each one, it is evident that Starbucks has become an industry leader because of its effective responses to external challenges. In terms of rival firm activities, market positioning, competitive pressures from suppliers, and the emergence of substitute products from outside the industry, Starbucks has responded by consistently taking strategic advantage of its strengths. In business as in many other fields, the best defense is a good offense, and Starbucks has maintained its position as an industry leader by being proactive instead of reactive."

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