Starbucks Case Questions

1. What is Starbucks’ strategy?

Starbucks’s sustainable competitive advantage in maintaining a well known brand in the specialty coffee industry is due to their well devised and implemented strategy. Starbucks understands their consumer’s needs and utilizes their core competency in its people and coffee byin establishing their strategy in providing quality coffee and a memorable experience through a differentiation broad market presence. These are some of their core values and purpose as a guidance and foundation in ensuring that Starbucks continuously meet those standards and remain a competitive advantage in the industry. With these in mind, it is important for Starbucks to continue to innovate and develop their core competences, and re-assess their overall strategy by integrating these goal commitments through their action and activities in creating value.

2. Analyze Starbucks’ strategy using Hambrick and Fredrickson’s model

Arenas - The main target arena Starbucks is targeting is knowledgeable coffee drinkers, and individuals that pursue a certain lifestyle by providing them quality coffee, good service and an overall experience where they can relax and meet people. Starbucks is active in an enormous arena according to the case that is throughout North America, and Asia Pacific, with plans to go more internationally.

Vehicles – Besides the traditional retail outlets, Starbucks used various vehicles in achieving their goal. One method is through organic growth in developing their signature roasting and blending method to achieve the quality taste. In addition, their organic growth on their own version of the espresso cart Doppio allowsed them to expand their sales in other traffic areas. Another method is through agreements with retailers, wholesalers, restaurants, and service providers such as United Airlines to carry Starbucks coffee to increase brand awareness and loyalty. Besides,In addition Starbucks own all of its retail outlets and also...