Case study on Starbucks strategy and internal initiatives to return to Term Paper

Case study on Starbucks strategy and internal initiatives to return to profitable grown - Term Paper Example The study of Starbucks Company focus on a multifaceted journey through its implication into market dominance, culture, and its development of a brand similar to integrity, longevity, and loyalty. Comprehending the Corporation’s growth into an international star and the strategic approaches they utilized to get there starts with the origins of the product itself; coffee. Starbucks acquires its strength from expansion capacities, diversification, and novelty to accomplish a strong financial operation basing on its retail store operation. The corporation has precisely used several strategies to stay at the top of the market through good leadership alliance, branding techniques, use of new technologies, and maximizing its profits at all times. Innovative techniques and products have been the major building stones for Starbucks to maintain its leadership in the market and to return to profitable growth. Starbuck’s Business Model According to Henricks, a business model is a b rief representation of how a unified set of decision variables in a business’s strategies, architecture, and economics will be addressed to achieve a competitive advantage in a certain market. From the analysis of the company’s strategies, Starbucks has been found as a business that enjoys a high level of customer loyalty, and for a long time has had a significant competitive advantage over other less popular coffee-products companies using their entrepreneur approach to business basing on customer intimacy and innovation (Henricks, 2007). Starbucks business model evolves with time to meet the needs of its customers. It treats its employees well, such as insuring their health, has a long resourced fair trade coffee, and offers mobile offices to masses of unemployed workers and freelancers looking for jobs. The Corporation as done before will always entangle its share of critics, but generally it has a set a pace for other companies to learn from. Starbucks value propos ition Starbucks was much successful in the 1990’s. It has set initiatives to return to this profitable growth by making the customers the centre of its success. Starbucks gives the first priority to its customers in its value proposition. Its value is compelling since it places the clients and the service offered to them above everything else. Though the Corporation is a retail-coffee store, its value proposition is not exclusively on coffee, rather on coffee culture and the coffee drinking experience. With this strategy, Starbucks moves away from the practical gains offered by the coffee, like stimulation, taste, and focuses on the quality of its products and the indefinable gains of the experience of customers drinking its coffee. Thus, Starbucks value proposition is not based on coffee or other products, but on the experience of drinking coffee in the company’s store incorporating the product with the emotional gains of consumers. Starbucks vision for the business S tarbucks vision is to establish itself as a premier supplier of the finest coffee globally while maintaining its categorical principles as it grows. The company visualizes a growing business with loyalty to its customers, delivering quality products, and innovative customer benefits. Strategies to achieve the vision With the objective of being the most recognized and appreciated coffee producing brand in the world, Starbucks has some strategies to achieve this. The company concentrates on employee satisfaction and working as a team, as well as customer satisfaction through a favorable environment and high standard coffee. In addition, it uses only the best coffee beans in brewing the various blends and thus achieves the vision of producing the finest coffee. The main objective of Starbucks is to grow by first valuing its employees. Starbucks approach its employees with excellent comprehensive and