Starbucks as a business possess a number of skills. However, in its efforts to stand out from other coffee companies include innovations, leadership of the market, operations in their supply chain, and real estate areas that are superior to their competition. With the largest market share, this company is in a position to set and dictate trends in the coffee industry. Other factors include an emphasis on the price of products, corporate environmental and social responsibilities and the undoubted convenience of the company’s stores location. Superior retail locations offer powerful capabilities that crash their competition (Romeo, 2014). Most of the Starbucks stores are situated in areas with high foot traffic as well as local composition of demographics that is better compared to their competition. Nonetheless, the company’s strongest capacity is in its supply chain operation. Starbucks continues to lead the industry in innovations. Intense changes in the labor market are causing these innovations in effect and drive. Excellent marketing skills in spreading the message that social drinking allows networking have allowed Starbucks to become a coffee phenomenon all over the globe. The above factors can be cited as a summary of the steps that have led to their enormous success (Romeo, 2014). However, the principal formula is based on the approach that relates to company’s employees, financial resources, measured expansion, command of a premium brand, their vision and core competence, innovation and experimentation, promotional patience, and promoting ethics.
Financial resources
Being the globe’s best retailer of coffee and products from the same, Starbucks has an enormous range of finances in comparison to all or a significant share of their competitors. With an excellent financial resource, Starbucks can take risks by utilizing advantages through market opportunities, expansion operations, investments and other risky commercial ventures. These ventures are out of reach for less coffee (and coffee products) retailers in the market who operate with a smaller capital.
Employee’s Approach
Starbucks brand success in major retail is based on the interaction of the people with experience from the company. The values and culture of how people connect with the customers are of significant importance to the success of the business (Tălpău & Boşcor, 2012). Through creating and investing in a unique link with the employees and making them understand that it is all about the customer, good working relations and success will be in the offing. Employees at Starbucks are seen as business partners and not just another resource for the firm. The operators act as the primary target in an effort to exceed the expectations of customers as well as that of the workers (Tălpău & Boşcor, 2012).
Measured Expansion
Where other competitors in the coffee retail industry are famous for location assessment that is ultra fast and a quick set-up process of a business, Starbucks uses an approach that can be described as observing a little more caution especially in the foreign markets. For instance, outlets of Starbucks in China continued to increase in a steady pace since 1999 to 2005 (Romeo, 2014). These outlets rose from just 8 to well over 70 stores in this period. Using their globally accepted and established brand name, Starbucks enters new markets with increasing market opportunities.
Starbuck’s Premium Brand
According to a research from Brown (2012), an increasing number of consumers are ready to pay upwards adjusted prices for coffee from Starbucks since they are making a kind of social statement as they buy their favorite beverage. The company has made sure that the premium brand status is well marketed in that customer not only buy coffee but a superior and rare experience, an attitude and a lifestyle. Even though measuring the above-mentioned intangibles is quite difficult, customers frequenting Starbuck’s for their products make this task easier through continued loyalty and more spending (Perera et al., 2012).
Starbuck’s Vision and Core Competence
In tandem with the primary responsibility and role of Starbucks, the company’s vision and core competence ensures that its culture within the organization is compatible with the clientele they wish to retain or attract. Using their employees, as well as the customers, the company aims to create a sense of being in a team as they build confidence and trust in their stance on issues and primary responsibility. The reason the company retains customers is due to high quality of their experience and products and all this is brought to life by the dedicated employees. With a proper competitive way forward in terms of business strategy, Starbucks facilitates a devout love for their products. Management approaches and leadership within the company creates huge success for the brand through a clear vision as well as core competence (Romeo, 2014). A well-placed positioning and planning strategy motivates the company to develop a brand that is recognizable all over the world.
Innovation and experimentation
In the generation of high levels of sales that are consistent, Starbucks has continued to show a lot of disciplined innovation. Good management of the innovation timeline plays a significant role in their enormous success. There is a variety of products offered for customers including a customized brand of their favorite beverage. Starbucks has a competitive strength in its ability in rolling out fresh initiatives, as well as products very quickly (Tălpău & Boşcor, 2012).
References
Brown, A. (2012). Analyst: New Coffeemaker Can Serve Starbucks A Double Shot At
Success. Forbes.Com, 2.
Perera, L., Lenk, H., de Souza Corrêa, M., Yoshikawa, A., Silva, A., & Arasaki, R.
(2012). Effects Of The 2007 Financial Crisis On Starbucks. Journal Of International Business Strategy, 12(1), 19-29.
Romeo, P. (2014). Swiping A Page From Starbuck's Magic Book. Restaurant
Business, 113(3), 10.
Tălpău, A. A., & Boşcor, D. D. (2012). Customer-Oriented Marketing – A Strategy That
Guarantees Success: Starbucks And Mcdonald's. Bulletin Of The Transilvania University Of Brasov. Series V: Economic Sciences, 4(1), 51-58.
