However, since then, the company has opened additional 368 stores across Japan. Starbucks is becoming at the moment an international coffeehouse sensation. However, the application of the broad differentiation generic strategy also extends to other areas of the business. The reason behind the popular global brands being soft targets of anti globalization protestors is that these are convenient symbols which can be easily targeted and the common man will know the protestors. Starbucks has proven that it is resilient and strong. Mostly the stores are located or planned in high traffic and high visibility and most prominent areas of the city.
These two retail segments are managed by different presidents within the Company and are measured and evaluated separately by senior management. According to Neelankavil and Rai 2014, p. This means the firm can realize many advantages on resources and capabilities over its rival. The Starbucks app is one of the more powerful features in their marketing arsenal. Such a scenario will become even more plausible when the brand experiences an external shock. Last but not the least, it needs to evolve and elevate the customer experience of drinking coffee in its stores continuously. These two retail segments are managed by different presidents within the Company and are measured and evaluated separately by senior management.
The firm further has different regional managers, and this enables them to make decisions interdependently. Partners employees and external partners are central to Starbucks' organizational culture, business model and strategy. Starbucks was cautious and aware of the fact that a standard complaint leveled against U. Since coffee prices are unstable due to weather, export regulations, economic, and political conditions in the growing countries of Colombia, Sumatra, Yemen, Antigua, Indonesia, Guatemala, New Guinea, Costa Rica, Sulawesi, Papua New Guinea, Kenya, Ethiopia, Java; it is not surprising that Starbucks is concerned with the supply and prices of this commodity. Something like Eco-Coffee is a great idea which will be much appreciated and will show Starbucks concern towards environment. Moreover, social media is adapted by Starbucks as an effective communication channel with customers to develop new products taking into account customer preferences and opinions. Same way if a group of friends want to enjoy a cup of coffee sharing quality time at Starbucks and some of them smoke, then they would ditch Starbucks for their friends and might enter another coffeehouse where they can enjoy with their friends.
According to Neelankavil and Rai 2014, p. In the coffee sector, Starbucks enjoys a lot of success. However, it has to focus on building its expectations and goals. The objective was to establish various Starbucks stores across Japan Thomson 2009, P. Speciality items and coffee accessories however are purchased from local sources and manufacturers. Products can be diversified as per the cultural aspects like in India people love giving unique gifts to their friends and families on most auspicious occasions and festivals. Specialty sales groups provided Starbucks coffee products to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers.
The stores provide similar menu as that of U. The company further strived to establish a close personal relationship with all of its consumers. Expansion of the geographic base will promote its growth. A challenge in applying this generic strategy is that Starbucks must always innovate. Often it is pointed out that individual Starbucks carry different food, but its food sales make up only 3% of store sales.
Also, according to Carol Matlack 2008 , there is a major difference between the way Starbucks stores are owned and operated within the United States versus without. Therefore, it is important for the firm to learn how to manage flexibility, integration, and responsiveness. The company operates primarily in the United States U. The Foodservice team focuses on delivering Starbucks products to operators in hotels, restaurants, colleges and universities, and business and industry. Starbucks agenda is to be the largest player in the coffee sector. In the last years, the demands for different blends of coffee have increased in Japan. Starbucks retail stores are usually located in high-traffic locations and high visibility areas.
The firm utilizes social platforms to interact and motivate customers. Although it operates only 75 stores in India in partnership with a local player, Tata Global Beverages, Starbucks believes that India is its fastest growing market. Joint Ventures First of all, Starbucks looks for partners who have multi-unit restaurant experience, knowledge of real estate and the retail market. British Journal of Management, 8 2 , 175-181. The concept of the world being flat has extended beyond geographical boundaries to the rapid blurring and demolition of economic ones. Similarly, to compete on costs Starbucks needs a flexible workforce with low wages and every danger of staff being poorly motivated, it is hard for such firms to cultivate customer-friendliness.
However, investment in knowledge is what makes Starbucks succeed in its operations. While planning overseas expansions it has left the sole ownership strategy as adopted in North America, in other countries they go for local partnerships. To preserve the environment, the firm has focused on promoting fair coffee trade. Starbucks needs to keep improving and innovating ahead of competitors to maintain its growth based on this generic strategy. The firm has better opportunities compared to threats. The firm also wanted to boost its sales and improve on its previous financial performances. Quality standards are so high that entire batch is thrown away after testing if qualifications differ from acceptable standard.