Starbucks' Business Strategy: An Analysis

1208 Words5 Pages
Introduction Starbucks has become a major quick service powerhouse and the world's leading coffee chain by using a combination of different strategies. The combination of a differentiated strategy, a high degree of standardization and aggressive geographic expansion has brought Starbucks to its current leadership position in the market. These different strategies will be studied to get a sense of what makes Starbucks such an effective competitor. The first view of strategy comes from Michael Porter, who describes four generic strategies for achieving competitive advantage (QuickMBA, 2010). Of these, Starbucks followed the differentiated strategy, wherein the company offers a unique product or service in order to compete. The perception of uniqueness is important, in that a firm can be differentiated even if its products are not. Starbucks combines unique coffee drinks many of which have now been imitated in the marketplace and the "Starbucks experience", which is a key differentiator in a coffeeshop market that was fragmented and where both product and service suffered from inconsistency. The Starbucks experience and products were replicable, and the company developed the systems to apply these differentiating factors to a high-growth model, where it replicated these factors around the world. The company's ability to deliver consistency anywhere has helped it gain a reputation the Starbucks brand stands for something specific in the marketplace and consumers easily
Open Document