Integrative Case 1.1- Starbucks

681 WordsJan 27, 20163 Pages
Amanda Fevurly 19 January 2016 FINA 375 Jiri Tresl Integrative Case 1.1- Starbucks While coffee is a simple product, the “Starbucks Experience” that is mentioned several times throughout the case is exactly what creates value for their customers and makes their company successful. Their strategy includes creating a home away from home included as a part of their day-to-day routine that reflects the personalities of their consumers and community. Consumers are willing to pay more for Starbucks because they have a greater perceived value through experience. Regarding Porter’s Five Forces, Starbucks confronts a variety of challenges that has presented difficulties specifically from 2007 to 2010. Starting with the competitive rivalry…show more content…
One of the ways Starbucks is approaching innovation is by attempting to tap into the tea market. This presents a risk or success factor depending on how they approach this. The tea industry has not been strongly commercialized and is a sacred part of every day life for many cultures. Tapping into this market could be very successful and a key to continuing Starbucks competitive advantage but also has the negative affect of crashing and burning if it is not approached with caution in international markets. However, the future of Starbucks continues to rely on sustaining themselves as the premier brand in the specialized coffee
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