A Strategic Analysis of Starbucks Company

  1. Write about Company: Starbucks Corporation

Starbucks Corporation is an American coffee company founded in Seattle, Washington in 1971.  The first phase of the company in the early 1980s was marked by challenges and the low market for its products and services. The following decades were marked by the success of the enterprise with the introduction of subsidiaries in different regional markets.  The company is developed with a clear objective that seeks to produce coffee products and services to its growing customer base. Starbucks has since grown into a stable company in America and has expanded into the global market. Indeed, it operates in 23768 locations worldwide. Starbucks coffee houses serve hot and cold drinks, micro-ground instant coffee, espresso, caffe latte, loose-leaf teas, and whole-bean coffee (Simon 14). Some products are specific to certain locations depending on the behavior of the consumers; fresh juices, chips, and crackers. The diversity of goods and services offered by Starbuck has allowed it to serve a wide range of customers with different preferences.

            The founders of Starbucks, Jerry Baldwin, Zev Siegl, and Goldon Bowker were inspired to sell high-quality coffee. This defines the Starbucks as a company that is built to sell quality coffee products to all consumers all over the world. The success of Starbucks is tied in its ability to produce quality and affordable products to all the populace. The company developed a good relationship with farmers who guarantee the production of beans. The company has also produced its programs to secure and roast its beans to boost the production and maximize on quality and profits.

4. Generic Strategies

Generic strategies that companies tend to use to improve their competitive advantage are the cost leadership strategy and the differentiation strategy. Using the cost leadership strategy, Starbucks has been able to produce high-quality products that attract consumers. Under the differentiation strategy, Starbucks has a wide range of products that capture a large customer base.  

Chapter 2Question 2: The economic market is open for the entry of new companies and the exit of the existing companies. In order for a firm to clearly define its industry, it needs to explore the products produced and the technology employed in the production. The products and service can qualify the company to take a position in a particular industry. A company that uses a specific technology to convert raw materials into viable physical products can be classified as a manufacturing sector. On the other hand, a company that converts resources to specific services can be categorized as a service company. Starbucks secures and roast coffee beans into fresh products that are then delivered to consumers. Therefore, Starbucks is a service industry that seeks to bridge a particular gap in the society by offering safe services and products…

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