Str 581 Week 1 Strategic Choice And Evaluation Strategy
Strategic Choice and Evaluation
STR/581
August 6, 2014
Introduction
In order for Starbucks to even understand growth, they will need to identify their weaknesses as well as implement different strategies to address the weaknesses that were identified. Starbucks needs to consider a value discipline, generic strategy, and grand strategy to remain competitive in today’s economy. The following paper will discuss strategies recommended as well as provide examples of how combining different strategies can increase their profitability and achieve growth.
Best Value Discipline
A generic strategy that is used as an alternative approach is known as value discipline, which consists of three important concepts …show more content…
Starbucks needs to ensure that they are focused on their consumers and that there products are tailored to the needs of their consumers. In order for Starbucks to retain customer loyalty they will need to ensure that cultivate a strong relationship with their customers.
Generic Strategies Differentiation, focusing, and low-cost leadership are three generic strategies that were identified by Michael Porter. According to Pearce and Robinson (2013), differentiation requires that the business have sustainable advantages that allow it to provide buyers with something uniquely valuable to them. In the case of Starbucks, the consumer feels that the cost to purchase the coffee/food item is well below what the coffee/food item is worth compared to their competitors such as McDonalds and Dunkin Donuts.
Grand Strategy
According to Pearce and Robinson (2013), Grand strategies are a means by which objectives can be achieved. There are a total of 15 different grand strategies that can be utilized but for the purpose of this paper, I will only focus on a few.
Recommended …show more content…
This could include offering different products and services at different locations. For example, Starbucks could open more coffee shops offering organic lattes and organic food products at major retail stores such as Walmart, Sears and Kohl’s Department stores. With the current economical conditions, Starbucks needs to differentiate their products, which may in turn, help change the minds of consumers who are less willing to spend $4.00 on a cup of coffee. They could also create new products at a cheaper price to attract more customers.
Value Chain Development Starbucks is dedicated to its connection between their suppliers as well as supporting the ecosystem. An example of this would be the fair trade initiative. Starbucks has placed a large amount of time, effort, and money into developing the partners inside their value chain.
Horizontal Integration
Starbucks has and should continue to use this strategy to help control its competition and be able to reach out to new markets (as discussed in product differentiation). They have already done a good job of accomplishing this by using the acquisition of Seattle’s Best coffee and Torrefazione
STR/581
August 6, 2014
Introduction
In order for Starbucks to even understand growth, they will need to identify their weaknesses as well as implement different strategies to address the weaknesses that were identified. Starbucks needs to consider a value discipline, generic strategy, and grand strategy to remain competitive in today’s economy. The following paper will discuss strategies recommended as well as provide examples of how combining different strategies can increase their profitability and achieve growth.
Best Value Discipline
A generic strategy that is used as an alternative approach is known as value discipline, which consists of three important concepts …show more content…
Starbucks needs to ensure that they are focused on their consumers and that there products are tailored to the needs of their consumers. In order for Starbucks to retain customer loyalty they will need to ensure that cultivate a strong relationship with their customers.
Generic Strategies Differentiation, focusing, and low-cost leadership are three generic strategies that were identified by Michael Porter. According to Pearce and Robinson (2013), differentiation requires that the business have sustainable advantages that allow it to provide buyers with something uniquely valuable to them. In the case of Starbucks, the consumer feels that the cost to purchase the coffee/food item is well below what the coffee/food item is worth compared to their competitors such as McDonalds and Dunkin Donuts.
Grand Strategy
According to Pearce and Robinson (2013), Grand strategies are a means by which objectives can be achieved. There are a total of 15 different grand strategies that can be utilized but for the purpose of this paper, I will only focus on a few.
Recommended …show more content…
This could include offering different products and services at different locations. For example, Starbucks could open more coffee shops offering organic lattes and organic food products at major retail stores such as Walmart, Sears and Kohl’s Department stores. With the current economical conditions, Starbucks needs to differentiate their products, which may in turn, help change the minds of consumers who are less willing to spend $4.00 on a cup of coffee. They could also create new products at a cheaper price to attract more customers.
Value Chain Development Starbucks is dedicated to its connection between their suppliers as well as supporting the ecosystem. An example of this would be the fair trade initiative. Starbucks has placed a large amount of time, effort, and money into developing the partners inside their value chain.
Horizontal Integration
Starbucks has and should continue to use this strategy to help control its competition and be able to reach out to new markets (as discussed in product differentiation). They have already done a good job of accomplishing this by using the acquisition of Seattle’s Best coffee and Torrefazione