1. Starbuck’s business-level strategy
The strategies are differentiation and focused differentiation. They provide customers with products that have different features. The customers believe that it is competitive relative to the product’s features. They sold their products with a premium price.
2. How is Starbucks managing its relationship with customers? The employees are an important factors because they interact directly with customers. They create a personalized service that is important to customer’s satisfaction and loyalty. The personalized services include personal greeting, flexible changes to the drink/order and memorizing the favorite order of each customer, all with genuine smile and friendly spirit. The customer intimacy is special for customers. This point differentiates Starbucks from competitors and decreases customers from changing stores.
3. How would you describe the market segment that Starbuck’s serves? Before, they serve affluent, well-educated and white collar patterns. Their customers age from 25 to 44. Currently, they serve all types of customers.
4. Is the differentiation strategy appropriate for Starbucks? Why of why not?
The strategies are appropriate for Starbucks. They control overhead, avoiding marginal to sacrifice explore and development, customer service, advertising except manufacturing of a product. The differentiation involves the innovation in the industry as being unique, such as brand image, technology, features, dealer networks and customer service. The focus strategy targets the right group, geographic market or segment of a given product line. Now or in the future?
The strategy would reveal strong marketing abilities.
5. Using the five force model of competition, how should Starbuck’s plan to position itself in these economic times? Five force model are threat of entry, the power of suppliers and buyers, product substitutes, and the intensity of rivalry.
Starbucks competes by a...
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