Starbucks Case Analysis

Topics: Coffee, Starbucks, Strategic management Pages: 2 (623 words) Published: October 10, 2011
Founded in 1971, Starbucks is the leading roaster and retailer of specialty coffee in the world. Operating in more than 50 countries, the company strives to maintain its reputation as one of the most recognized brands in the world. Apart from providing exceptional quality, Starbucks is dedicated to community and environmental initiatives. In this memorandum, we will explore these strategies using the Value Chain Analysis method and Porter’s Analysis method. Needs-Based Positioning

Starbucks differentiates itself from competitors by using the needs-based positioning that is introduced in the article “What is Strategy” by Michael E. Porter. Starbucks provides various products and services to meet the needs of the diverse consumers. Starbucks offers a variety of beverages ranging from Tazo teas, to hand-crafted coffee choices, and delicious Frappuccino and fruit blended smoothies. The customers do not feel limited when it comes to their varying drink preferences and are at ease that their needs will be met. The organization offers healthy choices from the refrigerated section containing yogurt parfaits, fruit cups, and sandwiches. Starbucks also has a variety of wraps, fresh muffins, scones, and croissants from the delicious fresh bakery. In addition to selling an assortment of products, Starbucks welcomes its customers to take advantage of its peaceful atmosphere. Starbucks provides the ability to use wireless Internet within the vicinity. The internet along with the various seating available, gives customers a choice to stay and enjoy the environment after their purchase. Starbucks allows consumers to thoroughly enjoy their delightful products in a warming environment. Differentiation Advantage:

Due to the high quality of Starbucks’ coffee beans, customers are willing to pay a greater price. This gives the organization a differentiation advantage over its rivals. The company’s high quality coffee beans arise from the 28 indicators that...
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