Each company has what sets it apart from other companies in the same industry. This ideology excludes not Starbuck. Starbuck has a history and right from its inception, the founders wanted something that would offer fine coffee to the society that settled in Seattle. This has all along been the case. To accentuate this phenomenon, there was a time Howard Schultz had to travel to Italy to explore more of the Italian coffee tastes offered in Italy coffee bars and come back to customize the same in America. Unfortunately, upon his return he resigned from Starbuck and formed his own company. However, a few years after he formed his company, Starbuck went on sale and this led Howard Schultz and other investors to mobilize resources and purchased Starbuck. Schultz’s coming back to Starbuck has seen the company go through lots of ups and downs. The company got a rare opportunity of realizing the original ideal he envisioned of it when he returned from Milan (Webb & Schultz, 2011). The vision was to make Starbuck a place to be for all its clients and potential ones.
Competitive Strategic Approaches used by Starbuck
Companies put in place strategies that make them survive rough competitive business environments and this includes Starbuck. Competitive strategies are at least classified in five ways. First there is differentiation strategy that can either be focused or broad. Low cost strategies are also categorized as focused, general or best-cost provider.
Starbucks’ original vision was to make the company part of the community (GAUDIO, 2003). Being a community’s meeting place, means that the company had to provide a variety of products that would accommodate every member of the society. In that regard, you find that one of the key competitive strategic plan which Starbucks has always ensured that it is in place broad differentiation. The coffee industry is already very competitive but Starbuck is always on the lead because it differentiates its products. It not only different the products but also concentrates on to making sure that the value added on to those products is very diverse and appeals to all its clients.
Starbucks believes that its clients’ needs, or rather preferences, are diverse and if it has to make a difference from the standard products their competitors are offering, then it has to diverse the products and the services offered. In ensuring that this is happening, Starbucks offer diverse products and ensures too that the methods it uses to distribute these different products is also diverse. Note it has successively served airlines, hotels learning institutions, select retailers and many more diverse customers. Much focus is given on how every customer is served as this keeps them coming back. This is something Howard Schultz himself had to get down into it and thus he taught his employees on how to be friendly to the customers. The employees’ friendliness...