Starbucks Business Strategy

683 Words3 Pages
INTRODUCTION: The purpose of this paper is to know the business strategy of STARBUCKS including its value proposition, and the company’s operations using Porter’s Primary Value Chain Activities. Furthermore, the writer will detail Porter’s Five forces model and identify three risks to financial results and reporting in the short term. BUSINESS STRATEGY Starbucks has the concepts of brand identity and product differentiation. They have tapped in on what the consumer perceives and had managed to identifiable differentiate themselves between other companies’ products or services. Starbucks realizes this success depends significantly on the value of the Starbucks brand while relying on its excellent reputation for their product quality, superior, and consistent customer service. Marketing The main marketing strategy and position for Starbucks is for customers to consider it as their place after home and work, this will guarantee customers visiting the shops several times. However it also customizes its positioning for each store individually according to the specific location it is in. Another important part of Starbucks’ positioning over competition is that they are environmentally friendly. Starbucks does not generally offer promotional prices on its products. Instead, the Starbucks strategy relies on word of mouth advertising. They believe that by creating an intimate and welcoming environment in their stores, as well as providing a great cup of coffee, patrons will not only keep coming back for more, but will tell all their friends and family about it too. 5.3.2 R&D Sensory Science. The introduction of the Starbucks Card for example, Starbucks has created the opportunity to improve customer service, shorten lines and make a customer’s visit at Starbucks quicker and more convenient. Starbucks is continuously searching for ways to better a customers’

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