Starbucks Business Level Strategy Essay

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Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. Starbucks began their journey in 1971 with one store. They are a company that offers a variety of products specializing in coffee. Today they are one of the largest coffee establishment in the world with more than 24,000 stores spanning over 70 countries. Starbucks products consist of hot and cold made to order beverages, fresh sandwiches, salad and pastries. Ready to drink products are produced and made available at convenient stores and markets. (Starbucks, 2016). The Business Level Strategy that would benefit Starbucks is the Differential Strategy. The goods and services that Starbucks produce consumers perceive as unique and different than other coffee establishments. The company’s product innovation through the introduction of new and seasonal product has benefited both consumer and the company. Consumers are willing to pay above average prices because the products are satisfying their unique needs. This cost helps Starbucks to …show more content…

The use of strategic alliance along with effective corporate strategies, allowed Starbucks unique opportunities to enter into restricted markets. (Hitt, Reland, Hoskinsson, 2013). An alliance that has been very successful for them is the selling of bottled Frappuccino coffee through a partnership with North American Coffee. This move keeps the company competitive and a leader in the coffee industry. Through a joint venture, Starbuck partnered with Magic Johnson to open stores in low income communities. This venture brought economic growth through job creation, community support, and a commitment from Starbucks to continue to develop urban neighborhoods. (Starbucks,

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