March 26, 2012
The opening of new stores is the cornerstone of Starbucks’s success. In order for Starbucks to continually growing in the market is to enhance the equity of the company and the Starbucks brand name. One opportunity of accomplishing these goals is to attract new customers by opening new stores in their communities. By maximizing the convenience for customers, the new store locations will attract new customers and allow existing customers to increase in their frequent visits. In addition, Starbucks is adding drive thru for the on-to-go customers and professionals. Starbucks will strive to increase profitability of these units by comparing data between existing and newly opened stores.
Starbucks Corporations’ overall goal and main agenda for profit and growth in the industry is by keeping a competitive edge and constant reinventing itself through its value principles. There are many strategies that can allow any company to change for the better. Starbucks focuses on rapid global expansion and its executive management team is leveraging the strength of the company. Operational resources are maximized through the experience and strength of the management team along with the realignment of executives. The current president of Starbucks Coffee International, Martin Coles, was promoted to Chief Operating Officer (COO). Coles understands that Starbucks is adept and knowledgeable in the area of increasing profits and its market share while continuously building a close relationship with its customers and their needs.
Michael Treacy and Fred Wiersema stated,” believe that strategies must center on delivering superior customer value through one of three value disciplines: operational excellence, customer intimacy, or product leadership” (Pearce & Robinson, 2011). Starbucks operational excellence approach to its production and delivery of its products and