Starbucks Case Study
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Assignment Questions- Starbucks
Which competitive strategy most closely approximates the competitive approach that Starbucks is employing?
Broad Differentiation – they offer a large variety of products and product variation tailored to the
consumer preference.
Consumer Products – pg.88
They have expanded their product offerings along many different distribution channels by capitalizing
on their growing brand name and awareness.
What are the component pieces of Starbucks competitive strategy as of 2010?
create superior products, design features, and performance
Improving customer service or adding additional features
Pursuing production R&D activities
Striving for innovation and technological advances
Increasing intensity of marketing and sales activities
Seeking out high-quality inputs
Improving employee skill, knowledge, and experience
What are the key policies, practices, business principles, and procedures that underlie how Howard Schultz and Starbucks management have implemented and executed the companys strategy?
Store Expansion – hub city approach, then spokes; creates buzz and brand recognition
International Expansion – company owned or licensed with quality control
Staff Training –
Ethical Business Principles
Coffee Brewing Standards
Store Opening Costs – pg. 84
Health Care for employees, Stock Options, Employee Training, Empowered Employees; creating a low-
turnover
How has Howard Schultzs original strategic vision for Starbucks change over the past 30 years?
It really hasnt changed, they never changed the quality of the beans, every store has the same
culture, they build a sound company from the inside out, they remain socially and
environmentally responsible
Where starbucks is offered, not only in coffee shops
What is your evaluation of Starbucks social responsibility strategy?
Ethical sourcing of products:
C.A.F.E Practices, purchasing Fair Trade