Starbucks Case Study Business Policy

1042 Words Mar 14th, 2013 5 Pages
Integrated Business Policy and Strategy
First Short Case Report
Group

STARBUCKS OVERVIEW
Starbucks is the world’s most successful transnational coffeehouse. Established in 1971, Starbuck’s overwhelming success has led it to operate more than 17,000 stores, recording 2011 revenues of $17 billion at approximately a 15% profit margin. This case report will explore what has allowed Starbucks to dominate the coffeehouse market and the opportunities and threats for future operation.
CAUSES OF SUCCESS SO FAR
Differentiation Strategy
Starbucks has many functional strategies that help it achieve superior financial performance. The first functional strategy Starbucks uses is increasing efficiency with its human resource strategy.
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DIMENSIONS OF FUTURE UNCERTAINTY
Threats
Starbucks has a very secure competitive advantage because they implement the four building blocks that create competitive advantage, including superior quality, efficiency, innovation, and customer responsiveness. Although no company is secure when it comes to competitive advantage, as long as Starbucks continues to listen to its customers and adapt to the ever change business environment, their competitive advantage will remain secure. When it comes to Starbucks, there are higher barriers to imitate this brand than it is with other coffee shops. Many coffee brands such as Arabica, Caribou coffee, and McCafe provide a relaxed area, or they provide various blends of coffee, or they provide great customer service, but besides Starbucks we have not seen any other coffeehouses incorporate all three. Also, Starbucks’ brand image is very hard to imitate. Starbucks truly cornered the market by having a strong brand name, and by locating their stores in vital, high traffic areas.
Opportunities
Starbucks has enjoyed much success since opening in 1971, but opportunities are still accessible. Starbucks is looking to increase the amount of shops that are open expanding to many emerging international markets. The most visible example of this in China, which by 2014 will become the largest market outside of the United States .The resources, capabilities, and distinctive competencies of

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