Question

4) Discuss Starbucks’ need for a new strategy in the late 2000s. Based on the analysis, what are the strengths and weaknesses of Starbuck’s current strategy?

Answer 1

Comparatively higher prices of Starbuck products make them less perceivable by the larger lower-middle class consumers. Since most Starbuck products are fundamentally based on comprehensive corporate standards that make the product less connected with traditional demands in some markets.

However it’s been widely considered as an excellent opportunity for Starbucks to expand its business prospects in Middle East and Africa where presently their presence is considered to be very negligent and also they have a very good opportunity to develop their business prospects in Asia where economic growth rates are available at soaring rates.

It’s been firmly believed that Starbucks do have an extensive and significant product mix facilities however further diversification can indeed facilitate them to develop its competitive advantage for instance joint ventures and coalitions can indeed facilitate them towards strengthening Starbucks competitive position.

Low-cost coffee from organizations like McDonald, Dunkin’ Donuts etc has been able to successfully contend against the expensive Starbuck products and furthermore other enterprises can also replicate their business model for instance companies such Stars and Bucks a coffeehouse in Palestine has successfully been able to imitate Starbucks business theme.

However Starbucks business model do have strengths to preserve its competitiveness thus the company needs to take advantage of opportunities for global expansion as quickly as possible to endure advantage over other enterprises who are also endeavoring to enlarge universally.

Thus it needs to effectively address the concern of competition related with low-cost coffee products Starbucks need to emphasize on excellence and exclusivity in modernization and improvement of products to set them apart from others. Furthermore Starbucks can also enhance their efforts towards trademark and intellectual property safeguard to lessen the risk of imitation.