Starbucks Case Study 3

A growth strategy is designed to help an organization expand its markets served, products offered and increase its employee and market share. Starbucks is an organization that is on the continued rise of success but in order for Howard Schultz to make sure good decisions are being made for the company certain growth strategies are used. I believe that Starbucks uses two different strategies, concentration and both forward and backward vertical strategies. A concentration strategy focuses on the primary line of business that will help to increase products. Starbucks use of innovation helps to support this strategy, for example the use of red cups during the Christmas season along with certain holiday inspired coffee drinks, or the refresher energy drinks that are infused with antioxidants and green leaf coffee beans and the skinny menu for a healthy Starbuck experience. All these innovations were made to increase the business, adding more products to the menu allows more options for customers new and returning. Backward and forward vertical is also a strategy that Starbucks uses. The backward vertical strategy is when an organization controls its on supplier so its able to control the inputs and Starbucks has done just that by buying most of the supply companies that service the organization for example Teavana, Tazo, and Evolution Fresh. A forward vertical strategy is when an organization has become its own distributor and can control the outputs. Starbucks Refresher is not only sold at Starbucks sites but at hundreds of grocery stores as well.

P3-3

Howard Schultz main focus for Starbucks was to give the people of the United States something new, a different way to experience coffee. Starbucks can easily be separated from its competitors. A personal reason on why I chose Starbucks over Tim Horton is the atmosphere. I am not a huge coffee fan but the big comfortable chairs, free Wi-Fi, dim lights and soft music make for a relaxing homework area, and because...