Starbucks and their Substitutes - Essay Example

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 its 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 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, Starbuck's 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 its going concerns through the various risk control mechanism. In contrast, the Starbucks strategic plan can be viewed as a way of exposing itself to its competitors