Business Level Strategy : Starbucks Essay

Business Level Strategy : Starbucks Essay

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Ch. 5 Business Level Strategy
Starbucks does its best to offer a unique and memorable experience for each and every customer. As part of their responsibility to their customers, they are committed to offering coffee of the utmost quality. Starbucks believes that employees are a major part in providing an excellent customer experience so they are able to maintain a long-term relationship with consumers.
Through the use of multiple business level strategies, Starbucks has been able to become a leader in their market and differentiate themselves from the competition. In order to cut costs, they have started using 100% recyclable or reusable cups. In addition, they opened a roasting plant in South Carolina to support firms in the southeast region to reduce logistics costs. The roasting plant is LEED certified (Leadership in Energy and Environmental Design). The green features associated with this certification indicate the reduced energy required and waste production generated by both the construction and operation of the facility. The facility features efficient, state of the art lighting and water fixtures, drought tolerant landscape, and a portion of the power used for operation is green power, supplied by wind energy. Starbucks has over 650 LEED certified stores in over 19 countries. While these measures have not made them leaders in the cost strategy, it has helped reduce costs to allow them to stay competitive in their market.
In order to differentiate themselves from competitors and become leaders in the market, Starbucks offers products of superior quality. By only using the best ingredients, they ensure the final product will be satisfactory to consumers. For example, in 2007 they stopped using milk from cows raised with th...


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... for 44 years, gaining valuable experience over time. Starbucks has been in the mature stage because the market is becoming saturated with coffee shops. According to www.statista.com, there are 55,246 coffee shops in the U.S. so there are many more coffee brands to choose from than just Starbucks. With that in mind, Starbucks offers excellent customer service and gains more market share by expanding out into different markets, as they make their push to move from the mature stage back into the growth stage. In 2013, Starbucks dropped their price for a 12 ounce bag of coffee from $9.99 to $8.99 to remain competitive with other leading bagged-coffee sellers. These mergers and partnerships will provide the opportunity for just that. With the population’s daily change in taste, they will provide more than your average cup of Joe to consumers in the morning (Starbucks).

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