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Starbucks and Peets - Research Paper Example

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STARBUCKS v PEETS Name Institution Contents Contents 2 Introduction 3 Fundamental philosophical differences between the two companies 3 Launch and handling of products and services 4 Marketing of products and services 5 Approach to e-commerce 6 Future challenges that each competitor faces 7 Important decisions 7 Fundamental differences in Vision statements 8 Specific competitive advantages 9 Strategic moves 9 Company background, comparative statistics, and conclusion 10 References 11 STARBUCKS v PEETS Introduction Owing to different preferences brought forward by various coffee drinkers, there are diverse views expressed by these coffee drinkers as regards Starbucks and Peet’s coffee stores…
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Download file to see previous pages Their intense performance, growth, and investments warrant investigative studies. As such, this paper will seek to analyze the fundamental philosophical differences in their styles of management, how they launch and handle products, as well as their systems of marketing products and services. Additionally, this paper will develop a face-off strategy based on electronic commerce approach that sets one rival company apart from the other. Other aspects that this paper will resolve to explore include future challenges that these companies face and how the decisions that they make affect the company’s performance. Fundamental philosophical differences between the two companies According to reliable sources, Starbucks does not have any philosophical management styles. However, it does put a lot of emphasis on some strategies that makes it flexible and different from its competitors. For instance, the company puts a strong sense of ownership on its staff. From the highest rank to the lowest level, every employee has the responsibility and dedication to carry the success of the company with a strong and encouraging context (Ford, Sturman, & Heaton, 2011). In addition, Starbucks management style revolves around the belief that, everything concerning coffee matters. On the other hand, Peet’s coffee store practices an autocratic style of management whereby, leaders at the headquarters makes all the decisions while the subordinate staff implements them (Mottern, 2002). This is a very sharp fundamental philosophical difference between these two stores since analytical research and analysis describes Starbuck’s system of management as permissive. Launch and handling of products and services More focus based on establishing how Starbucks and Peets launches and handles their products and services set forth that, both companies maintain database records in which they keep customers’ trends (Pride, Hughes, & Kapoor, 2010). However, Starbucks is different from Peets and the rest of the competitors in that, it uses factors like business-to-business strategies of marketing to launch and handle products (Smith, 2007). It also incorporates considerable measures that comprise of customer pinpoint and identification of early adopters where the company involves three main types of customers. They include program buyers, transaction buyers, and relationship buyers. In this case, Starbucks launches and handles its products through a chain of network created by these types of customers. Other methods incorporate use of the internet and massive television and radio advertisements. As in the case of Peet’s, this coffee store is unique from Starbucks as it uses sub elastic measures to launch and handle its products. First, it tests its marketing strategy then introduces the concept of marketing implementation (Mottern, 2002). Agreeably, it is hard to dash headlong to launch a product without first carrying market testing. After this stage, Peet’s uses its relations department to initiate campaign roll out aimed at launching a new product or service ...Download file to see next pagesRead More
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