Starbucks is one of the companies that had grown very rapidly. They ran their business not even for 50 years, but their size of the business is very big. The fact that made Starbucks to achieve great success is how they differentiate themselves with other businesses by creating comfortable environment and offering great experience to store. They have good products to sell, made by high quality of coffee beans, and also they have good customer experience system. They know only having good products will not work, and they know retailers should sell their products with great customer experiences. Top executives strongly believed in this idea, and they have created their cultures and belief according to these ideas. However, since their strategies are now imitated by many other coffee businesses, they are having external threats. Since Coffee beans are grown in similar locations, make differentiation with product with coffee businesses are hard. Some Coffee businesses create new menus to compete with their competitors but this strategy can be easily copied also. For example, think about differences between Biggby and Starbucks. There are now many differences that customers can follow. They both have environment for people to study, chat, and sit. They both have great locations, which is near to Campus. They both have pastries and other food products that go with coffee and more. Only difference that can be address is Biggby now have stamp cards to create loyal customers. Because coffees are imported in similar locations, and menus are similar, and also every cafés now imitated environment of Starbucks, Starbucks are facing great threat of substitute products and services. If customer did not like the service provided in certain store, now they can drive or even just walk to other store and have similar experiences.
In order to success in many International locations, Starbucks have to develop new strategies that are actually works at every location. Reason for...
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