Starbuck’s Business Strategy
The current business strategy of Starbucks has indeed proved to be more than effective. The Starbucks Coffee Company has no doubt become a successful story which is known all over the world. The pricing of the coffee products are slightly higher than what many would expect for a cup of coffee (Starbucks Corporation SWOT Analysis, 2013); however this pricing strategy is indeed worth it. This company has placed much of its emphasis on the quality of products. Their coffee is notoriously satisfying, and hence their customers do not mind paying up for the expensive product since it has a rich, delicious taste and aroma.
The differentiation strategy employed by this company is what has pushed its products to the higher ranks. Their coffee has been prepared in such a way that its uniqueness is what attracts the customers (Starbucks Corporation SWOT Analysis, 2013). The place in itself is very different from other coffee houses as it provides a relaxing atmosphere for the customers while they have their coffee. The Market demand has therefore increased ever since the company became noticed for its services. This has increased the number of sales made each day.
As much as the company is focused on a marketing strategy featuring the word of mouth advertising, it may also be in their best interest to include the use of a few posters here and there (Company Spotlight: Starbucks, 2010). This modification in the strategy may help attract new people who do not even know where it is located. Starbucks is competitive since it is mainly based on teamwork. All the people working here are trained to work together so as to ensure the result of a high quality product.
Starbucks differentiation strategy has both strengths and weaknesses (Company Spotlight: Starbucks, 2010). By ensuring that they provide only high quality products, they ensure that their coffee stands out from all the rest. However, their price for this high quality product may not be within the capability of many who would also like to enjoy the quality coffee. Therefore, the number of people accessing this product is limited to those who have the ability to pay for luxurious products.
References
Company Spotlight: Starbucks. (2010). MarketWatch: Drinks, 9(3), 29-34.
Starbucks Corporation SWOT Analysis. (2013). Starbucks Corporation SWOT Analysis, 1-12.
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