Essay On Recommendation For Starbucks

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Recommendation: Strategic Issue: Starbucks strategies have successfully made them one of the biggest names in the coffee market globally. Starbucks has been able to survive the high competitive market and to differentiate themselves from other coffee shops by producing high quality coffee. Also, Starbucks successfully create a huge numbers of loyal customers worldwide by providing great services and high quality products. Starbucks was able to survive 2008 financial crisis successfully. In 2008, Starbucks net income was -53% that means Starbucks was losing so much many yet, 2009 Starbucks was able to not only stop their losses but also to gain a profit of 24%. However, Starbucks should be worry from the possibility of another financial crisis that might decrease their sales and revenues or even worse they might end up closing many branches. Moreover, Starbucks should worry from the increasing intense competitive in the coffee market whereas Starbucks have no unique strategy to implement. Also, other competitors are offering similar products to Starbucks at a lower prices. Starbucks has some winning successful implemented strategies that well matched the company situation. However, will Starbucks implemented strategies is enough to maintain their statues in the market in the future? Are Starbucks manager going to consider some minor changes in the future? will Starbucks be force to change it strategies in the future to maintain their success? Can Starbucks sustain their competitive advantage? Strategy recommendation: Starbucks should use some strategies to continue its success in growing sales and profitability. Generic strategy of being the best-cost provider and grand strategies which are product development and market... ... middle of paper ... ...spect only. Such as, the other four generic strategies low-cost strategy, broad differentiation strategy, focused low-cost strategy and focused differentiation strategy. Because, they focus in one market it was either to have broad or narrow market coverage. Also, the competitive advantage was either to have a low cost or differentiating strategy. While Starbucks can implement an ideal strategy, which is best cost provider strategy that give Starbucks the best of the two the affordable prices and the quality differentiation. Starbucks should not advertise cause advertising is costly. Advertising might increase Starbucks’s revenues but it will increase Starbucks’s costs for sure. Advertising will lead to higher cost of operation that will decrease Starbucks’s profit margin. So, Starbucks should depend on their well establish brand name and logo as much as possible.

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