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Analysis (another one) - Case Study Example

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After 20 years that Starbucks has portrayed phenomenal growth, the company witnessed a decline in the price of its shares by 50 percent, as well as a decrease of its client base, particularly in North America in the last months of 2007. In January 2008, the firm announced…
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Case Analysis (another one)
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Analysis (another one)

Download file to see previous pages... Before 2007, the firm realized same growth rate that exceeded five percent for 15 consecutive years. This growth helped the company to establish its brand in the market, setting it apart from its rivals. The company maintained “standardization,” which helped it build its brand regardless of its rapid expansion. A lucrative business, the company has manage to merge growth and profitability with its competitive advantage, particularly by espousing strong ethical values (Ivey 7). In the recent years, however, Starbucks is showing weaknesses attributed to high prices, market saturation, and long waits in its stores due to the inexperience of its baristas and managers. The quality of coffee is low, and the food the company provides highly unattractive. With respect to opportunities, coffee culture is growing at a rapid pace globally, providing Starbucks with a chance to go up-market and compete with established coffee firms, especially in the luxurious European market and emerging markets such as China, India, Brazil, and Russia. In this case, Starbucks will manage to cope with the threats posed by Dunkin Donuts, McDonald’s, and Peet’s Coffee & Tea, as well as those resulting from financial crisis and the company’s overexposure in the market (Ivey 8).
Based on the strategic issues that Starbucks is encountering, which contribute to its downfall, the firm should hire additional managers and train its baristas appropriately to help streamline its menus, fill orders faster, and improve the overall services delivered to clients. The organization should also offer more products and services beyond coffee to address the diverse needs of its clients. The company should also provide its clients with natural food that does not affect their health negatively. In addition, the firm should lower the prices of its products and enforce fair workplace arrangements for it to create a ...Download file to see next pagesRead More
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