Starbucks

Topics: Starbucks, Supermarket, Shopping mall Pages: 3 (787 words) Published: June 18, 2013
What are the strategic factors facing Starbucks? What are the keys to success in Starbucks' operating in India?

Starbucks’ strategic factors include the plan to create a multi-faceted, global consumer brand, and to achieve a greater market share than the competition. The focus is on innovation and expansion. As I mentioned in my SWOT analysis post, an example of innovation is the implementation of their own Starbucks mobile phone app as an alternative way of paying. The Starbucks app displays a barcode that can be used to make a purchase. To pay, customers just hold their phone in front of the scanner. This makes for an easy transaction. Starbucks has been expanding internationally and shrinking domestically. They are increasing their foundation in the office place and securing profitable growth in these new markets.

Although, Starbucks is a leader in the retail coffee store market, they would like to improve their various distribution channels, such as packaged goods. Starbucks pride themselves with being able to connect to their customers and keep them coming back for more. In other words, these repeat customers are their “long-term assets”. These loyal customers have the potential to become repeat customers in the packaged goods market as well. Starbucks would still hold a place in the packaged goods market for the customers making Starbucks coffee at home as an alternative to going to the actual retail store.

Starbucks has already established a foundation in the U.S. retail business and they are able to connect with their customers in which they build all of their “long-term assets” They are able to combine that with new capabilities in multiple channels to accelerate their strategic model that the competition is unable to replicate.

Some may argue that Starbucks has saturated the market and unable to grow any further. However, there is, in fact an enormous amount of opportunity for profitable growth in the domestic retail business...
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