An Analysis of Starbucks' Strategic Choices

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There have been a number of strategic choices that the executives at Starbucks have made that have helped the company to be more competitive. Starbucks aim to compete with a number of key strengths. These include high quality products, delivering a consistent customer experience worldwide, and having management systems that are easy to duplicate anywhere. The move to emphasize China in the company's growth strategy is a good example of a recent move to help the company accomplish its mission. Starbucks has taken the time to get to know the market (Wang, 2012) and pour resources into growing the Chinese market in the hopes that it will be the company's #2 market by 2014 (Starbucks, 2012). Two other moves that the company has made recently that will help it to accomplish strong growth in the coming years are the acquisitions of Teavana for tea shops (Roche, 2012) and Evolution Fresh for juice (Baertlein, 2012). These moves position Starbucks to take advantages of its capabilities in building franchise systems that work, creating a comfortable customer in-store experience and in franchising out management systems around the world. If Starbucks can be successful with either of these ventures, it will be not only a major coffee player but might win in these other markets as well, giving it an opportunity for more growth in the Western markets, but also in markets with a more traditional tea culture. This diversification strategy is in line with recent strategic moves made by
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