Starbucks Strategy

Paper Summary:

The paper relates that Starbucks does not just sell the product but it also sells the ambiance which comes in the form of a European style coffee shop, a place where people can relax at any time of the day. The paper states that Starbucks has created a culture of making regular coffee drinking a sophisticated act for the American public. The paper also discusses how Starbucks made the company the most recognized and respected brand in the world.

Outline:
What are the main elements of Starbuck's differentiation strategy?
How did this strategy fit in the environment originally, and which resources and capabilities supported this strategy? What was the role of vertical integration?
How did this strategy evolve over time (US and internationally)?
The case ends in 1997, what happened after that? Describe the major changes that happened afterwards?

From the Paper:

"Deming was of the opinion that quality was an ongoing process and had to be constantly evaluated with reference to both internal and external environments affecting the organization. (DeVor, Chang, & Sutherland, 1992) The training of the workforce for instance has ensured that the quality of the coffee is always consistent. More important however, is that the employee can "educate" the customer about the coffee and the processes used to make the coffee. Trained employees are also able to instruct the customer about duplicating the coffee making experience within their homes. The average gourmet coffee drinker is also becoming more knowledgeable about brands, products and supporting accessories (espresso and gourmet coffee brewing machines) and Starbucks is probably responsible for this newly educated American customer."

Sample of Sources Used:

• Adamy, J. (2008). Starbucks Sets New U.S. Team, Led by Burrows. Wall Street Journal. (Eastern edition).
• DeVor, R. E., Chang, T.-h., & Sutherland, J. W. (1992). Statistical quality design and control : contemporary concepts and methods. New York, Toronto: Macmillan ; Maxwell Macmillan Canada ; Maxwell Macmillan International.
• Oladunjoye, G. T., & Onyeaso, G. (2007). Differences Between Resources and Strategy in Strategic Management: An Experimental Investigation. International Journal of Management, 24(3), 592-602.
• Smith, A. D., & Rupp, W. T. (2002). Application service providers (ASP): Moving downstream to enhance competitive advantage. Information Management & Computer Security., 10(2/3), pg. 64, 69 pgs.
• York, E., Creamer, M., Bush, M., Hupp, W., & Lemonnier, J. (2008). News outlets fixate on Starbucks' no-joe play. Advertising Age. (Midwest region edition), 79(9), 1, 2.

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• Analytical Essay # 105820 : "Starbucks Change Project"

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