Starbucks’ Corporate Strategy

3142 Words13 Pages
Starbucks’ Strategy and Internal Initiatives to Return to Profitable Growth Starbucks has been the world’s premier roaster and retailer of coffee since its founding in 1987. Today they operate stores in over 50 countries. They have 8,812 company-owned stores and 7,583 licensed stores. Sales accumulate on average to about $10 billion dollars. Starbucks along with the rest of the world was hit hard with the worldwide recession beginning in 2008. They were forced to change the way in which they operated. Starbucks is a rapidly expanding company and it is imperative through the leadership of Howard Schultz that they continue to evolve. Summarize the overall strategy of Starbucks Management in its effort to create and develop a new concept and a rapidly expanding company. Chief Executive of Starbucks wanted Starbucks to become an experience which is how it would differentiate itself from its competitors. This was achieved through adopting key strategies: 1) Focus on customer service in order to create an experience for its consumers. 2) Ignite their emotional attachment with consumers. 3) Commitment to improving their business through better training, tools, and products 4) Give attention to store-level economics and operating efficiency These strategies allowed Starbucks management to turn Starbucks into a location where people don’t just go to grab coffee, but to an experience Expansion / Growth of the company Starbucks expanded their company using new distributions channels which helped them break into new market segments. They aimed to create new products that would cater to a number of consumers making their products more accessible. SB with the help of the new formed partnerships with Pepsi, Sysco, US Foodservice and Aramark started selling their products to Universities, hotels, country clubs, hospitals, airlines, and

More about Starbucks’ Corporate Strategy

Open Document