Submitted by: Submitted by sid2307
Views: 129
Words: 911
Pages: 4
Category: Societal Issues
Date Submitted: 04/16/2014 11:17 AM
1. What functional strategies at Starbucks’ help the company to achieve superior financial performances?
The following strategies have helped Starbucks achieve superior financial performances:
* The company continues to focus on its original product bundle which includes good coffee, quality service and a nice environment to hang around.
* Overall Cost Leadership
* This implies the pursuit of cost reduction in all areas of a firm through tightly controlling, avoiding marginal, less profitable consumers and sacrificing research and development, customer service, advertising and other areas not pertinent to direct manufacturing of the product.
Differentiation
* This implies creation of something unique. This can take on many different forms including but not limited to brand image, technology, features, dealer networks and customer service.
* Starbucks would fit into this strategy of differentiation. The company founder Howard Schultz continues to come up with innovative products to expand the company portfolio.
* Starbucks has established a strong capability in research and development with subjective as well as quantitative goals. Starbucks has conducted research through trial and error within the company stores since they didn’t exactly have a well-established research and development department within the company.
*
Market Segmentation
* This implies targeting a particular group, geographic market or segment of a given product line. Starbucks has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience.
* Starbucks has always conducted a detailed demographic research to identify the target market and locations.
* Also, Starbucks has always been successful in adapting to changing demographics of their consumers.
*
The strategic alliance they have had with conservation international has allowed them to create a sustainable supply chain of high quality coffee.
*...