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Starbucks and their Substitutes. How the company stayed dominant against their competition before, during, and after the recession - Essay Example

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One of the core reasons why the corporation has maintained its dominance is by the use of their aggressive expansion strategies that push out a considerable degree of its competition. The purpose…
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Starbucks and their Substitutes Starbucks and their Substitutes. Introduction For the last decade, Starbucks has been one of the most successful coffee chains. One of the core reasons why the corporation has maintained its dominance is by the use of their aggressive expansion strategies that push out a considerable degree of its competition. The purpose of this essay paper is to describe how Starbucks Corporation and its substitute have managed to stay dominant against their competition during and after the recession (Higbee, Liaw, Ting, Tjho, & Ton, 2008).
How the company remained dominant against their competition before, during, and after the recession.
The recession is an economic period through which industrial activity and trade are extensively reduced. The period is characterized by the plunge of GDP by two triumphant quarters. Unlike its competitors, Starbucks, and their substitute have managed to stay dominant before, during and after the recession.
The analysis of why Starbucks has been dominant is incredibly vital to every organization especially those companies that experience a tremendous decrease in trading activity during the recession. Starbucks can be considered as a sample test to every company that is planning to start trading in the coffee industry as well as the imminent companies on how to maintain their trading activities regardless of the economic period.
Essentially, one of the core reasons why Starbucks has managed to remain dominant is by embracing the heritage of unique brilliance and high-quality coffee since it was established.
During the recession, the company attempted to have a massive expansion program. There is a range of advantages that are related to the development of markets especially to a company that is already established. Some of these benefits include better turnover due to high trading, creation of employment among others
Pro versus Con
An expansion and especially in an in a recession period can be beneficial to the company and at the same time it can limit. For instance, the company can acquire a significant market share before its competitors have any plan on their situation. Conversely, the company may become overexposed to various levels of risks which may reduce or constrain the company’s future programs (Higbee, Liaw, Ting, Tjho, & Ton, 2008).
Liberal versus conservative view
Fundamentally, Starbucks situation can be seen from two dimensions including a liberal and a conservative view. From a liberal point of view, Starbucks and its substitute have effectively managed to secure it going concern through the various risk control mechanism. In contrast, the Starbucks strategic plan can be viewed as a way of exposing itself to it competitors
There are various alternatives actions that the company can take to ensure that they do not lose their competitive advantage despite the various drawbacks. These measures include maintaining quality standards, producing quality as well as protecting their reputation (Higbee, Liaw, Ting, Tjho, & Ton, 2008).
Reference
Higbee, Z., Liaw, C. Y., Ting, C., Tjho, K., & Ton, M. (2008). The Future of Starbucks. New
York: Team Macchiato. Read More
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