Strategic Management, Starbucks Corporation
With restaurant operators facing intense competition every dawn, coupled with rising costs attributed to factors of production, there exists not a room left for strategic errors in the sector. Contrary to the thought of start-up restaurateurs, operating in the food service industry demands beyond the expectation that grounding organization's operations to the desire to cook will guarantee the firm's success. Typically, the industry operates in a storm of things evidentlyin a sector where for every restaurant that closes, another opens often in the same space under a similar management approach (Watson, 2013).
Consequently, fledgling restaurants are faced with the unforgiving competition while striving to gain footholds in the targeted marketplace, resulting in a common failure where most never operate beyond their second year. Similarly, despite the many years in operation national chains cannot afford to remain stale; they are strategically resolving the pressure of rising costs and competition through unique concepts, setting them stand out from the rest and bring more customers to their doors regularly.
[...] Starbucks Case Study . Retrieved August from http://kaseyreynolds.files.wordpress.com/2012/10/final-exam_kasey-reynolds.pdf Starbucks Corporation. (2012, December). Starbucks Corporation 2012 Annual Report. Watson, S. T. (2013, April 20). In Restaurant Industry, High Turnover and Intense Competition . Retrieved August from http://www.buffalonews.com/20130420/in_restaurant_industry_high_turnover_and_inten se_competition.html Yahoo Finance. [...]
[...] In such situations becoming a common phenomenon in a society, Starbucks Corporation has become a leading icon in the world food service landscape estimated to reach 2 $992 billion by 2014. Since the inception of Starbucks in 1971 as a partnership business by three academics Jerry Baldwin, Gordon Bowker and Zev Siegel ensuing from Alfred Peet inspirations, its current operations spread to 60 countries. The business philosophy centred on STARBUCKS CORPORATION providing top quality and fresh-roasted Arabica coffee places the enterprise to the modern track with 9405 company-operated stores and 8661 license stores (New York Times, 2013). [...]
[...] The Starbucks' target customers who seek quality STARBUCKS CORPORATION involve anybody despite the profession, age, and status resulting in over 25 million customers with the largest number being regular consumers. Despite the transition in the market, the 7 company's retention ability and influencing power to customer tastes translates into the financial weight of the company, demonstrating a low incidence of customers' threat. Internal analysis Starbucks corporation channel-development strategy enables the company to sustain its branded products under a unique business approach leveraging its emotional connection to the target consumers. [...]
[...] (2013, July 31). Starbucks Corporation (SBUX). [...]
[...] Firstly, with the American market approaching saturation and the foreign market risks affecting its foreign operations, prompting the company focus on expanding its international business to attain its growth targets. This would involve shifting from overreliance on beverage products as other rivals are catching up with similar products. Secondly, the rapid growth has commoditized the brand where they have lost the original romance amongst the young population. Consequently, the corporation's should aim at navigating the brand amongst all customers: older customers missing the brand experience and targeted younger generation perceiving the products unacceptable to their lifestyles. [...]
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