Strategic Choice and Evaluation Essay
March 26, 2012
The opening of new stores is the cornerstone of Starbucks’s success. In order for Starbucks to continually growing in the market is to enhance the equity of the company and the Starbucks brand name. One opportunity of accomplishing these goals is to attract new customers by opening new stores in their communities. By maximizing the convenience for customers, the new store locations will attract new customers and allow existing customers to increase in their frequent visits. In addition, Starbucks is adding drive thru for the on-to-go customers and professionals. Starbucks will strive to increase profitability of these units by comparing data …show more content…
A generic strategy is a firm’s a core idea or best way to compete in its existing market. Today, Starbucks uses the generic strategy of differentiation. Differentiation at Starbucks means customer’s special needs are met in order to meet the need of the product. In the past, Starbucks showed strong marketing abilities without running a television advertisement. Because advertising plays a major role in a company’s development and differentiation of it brand, many strategists use celebrity spokespeople to represent their companies (Pearce & Robinson, 2011). Starbucks budget for advertising was only 4% of their total incurred costs (U.S. Securities and Exchange Commission, 1998). In 1987, Starbucks conducted its research and development through trial and error within each store.
Research and development departments were not established at this time. Starbucks has grown from high quality standards and knowledgeable staff in 1971 to widespread retail distribution today. Now operating in 37 countries and headquartered in Seattle, WA, Starbucks Coffee business’ backbone is its company-operated retail stores. Starbucks now has a strong