Each company has what sets it apart from other companies in the same industry. This ideology excludes not Starbuck. Starbuck has a history and right from its inception, the founders wanted something that would offer fine coffee to the society that settled in Seattle. This has all along been the case. To accentuate this phenomenon, there was a time Howard Schultz had to travel to Italy to explore more of the Italian coffee tastes offered in Italy coffee bars and come back to customize the same in America. Unfortunately, upon his return he resigned from Starbuck and formed his own company. However, a few years after he formed his company, Starbuck went on sale and this led Howard Schultz and other investors to mobilize resources and purchased Starbuck. Schultz’s coming back to Starbuck has seen the company go through lots of ups and downs. The company got a rare opportunity of realizing the original ideal he envisioned of it when he returned from Milan (Webb & Schultz, 2011). The vision was to make Starbuck a place to be for all its clients and potential ones.
Competitive Strategic Approaches used by Starbuck
Companies put in place strategies that make them survive rough competitive business environments and this includes Starbuck. Competitive strategies are at least classified in five ways. First there is differentiation strategy that can either be focused or broad. Low cost strategies are also categorized as focused, general or best-cost provider.
Starbucks’ original vision was to make the company part of the community (GAUDIO, 2003). Being a community’s meeting place, means that the company had to provide a variety of products that would accommodate every member of the society. In that regard, you find that ...
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...t think global is soon bound to be out of business. Secondly, Starbucks has specialty coffee that is not offered anywhere else. Thus Howard needs to concentrate on exploiting the growing demand for this kind of coffee both home and globally. Finally, as long as Starbucks will want to continue benefiting from the word of mouth marketing style, it needs to diversify its campaign strategies lest its competitors overcome it.
Seaford, B. C., Culp, R. C., & Brooks, B. W. (2012). Starbucks: Maintaining a clear position. Journal of the International Academy for Case Studies. The DreamCatchers Group, LLC.
Webb, A., & Schultz, H. (2011). Starbucksʼ quest for healthy growth: An interview with Howard Schultz. McKinsey Quarterly, (2), 34-43.
GAUDIO, R. P. (2003). Coffeetalk: Starbucks™ and the commercialization of casual conversation. Language in Society.
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