Starbucks is now in over 80 global markets, and the fourth quarter of 2019 saw a 3% increase in international comps, up from a 1% increase in … However, a force that may counter the incremental growth from the new store openings is cannibalization. It has embraced digital innovation by developing and rolling out a Starbucks app for paying for products, tipping baristas, earning and redeeming rewards. Coffee has become an integral part of a daily life for most part of the population. A challenge in applying this generic strategy for competitive advantage is that Starbucks must always innovate to maintain its uniqueness and attractiveness among target consumers. More than 800 Starbucks stores were closed in the United States alone over 2008 and 2009. Starbucks Global Expansion Strategy, with a focus on China. This might include you though you may have invested money in these companies, or may have been working with one of them for years as an employee, or have consulted with them as an expert for a long time. He is credited to have successfully turned around the company into a global powerhouse of today. Learn more about our services and how your company can get aheadLast but not the least, it needs to evolve and elevate the customer experience of drinking coffee in its stores continuously. In the United States, where the company estimates that majority of its stores will become drive through, it has embraced stunningly appealing design principles to create stores out of unused shipping containers. Also, Starbucks could apply other generic competitive strategies together with its current one in order to maximize actual growth and competitiveness.
In this business analysis case, such alignment is observable in the company’s continuing emphasis on penetrating markets with its specialty coffee products, while offering these products to customers in various market segments. So, a brand experience that is superlative today may just become a regular one tomorrow. But massive expansion … The brand has an active Facebook page, a Twitter account, Instagram page, a Google+ community, a Pinterest page and a video channel on YouTube. Since Starbucks established its subsidiaries, “Starbucks Coffee international” in 1995[i], it has applied to flexible entry strategies; licensing and joint venture and whole ownership. The company operates with a strong sense of attention towards details, and replicating a consistent customer experience across all its stores and its products is a critical focus area. A more detailed strategic analysis of Starbucks Corporation should consider how to support continuous growth and expansion by strengthening competitive advantages in relation to the current broad differentiation generic strategy of the company. It encourages everyday acts of kindness and appreciation among family and friends, by enabling users to instantly and conveniently gift a Starbucks beverage or digital gift card.The Starbucks mission statement reads as “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”.
Expansion in developing markets – Starbucks has coffeehouses mainly in the US. In many Asian and Latin American countries, coffee drinking is a mealtime ritual, where the importance of food consumption is high. Market research revealed that the Starbucks experience appealed to those aspiring to Western standards or those climbing the social ladder in their own culture. Leading brands create their corporate strategies with an inherent strategic element encompassing innovation. Organisations are increasingly looking beyond their national markets.
In addition, Starbucks is opening up express stores which essentially function as walk-thrus in New York, Boston, and Seattle. In addition to competitive market factors, worldwide external shocks like the global recession have also severely impacted businesses at both local and global level. Such an inclusive notion of innovation facilitates achieving dual purposes that eventually supports a brand’s competitive advantage. The company operates a website called mystarbucksidea.com, where customers can leave ideas for the company to expand and improve its products and customer experience, improve engagement with the community and enhance social responsibility. This essentially results in a similar kind of experience in its stores, whether it is located in New York, New Mexico, Moscow, Tokyo or Shanghai.The brand strategy, as mentioned before, focuses in detail on the experience the store creates.