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Starbucks marketing report - Essay Example

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Summary
Starbucks Corporation is one of the leading global US based organizations. This leading coffeehouse chain is headquartered in Washington. This coffeehouse organization is operating its business practices with its 20, 891 retail stores in 62 international countries (Lussier, 2008)…
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Starbucks marketing report

Download file to see previous pages... Effective communication with employees, customers and vendors is increasing the brand reputation of Starbucks in global market (Pride & Ferrell, 2011). The organization follows environmental rules and regulations of several countries in order to avoid legal challenges. Legal Employment rules and regulations differ from country to country. Restriction on maximum working hours and minimum wage rate need to be considered by the organization in several countries to continue its business operations (Allen, 2012). Lastly, strabucks need to follow health and safety standards to maintain effective work environment. Starbucks SWOT Analysis SWOT analysis of Starbucks will help to determine Starbuck’s internal strengths, weaknesses and external opportunities and threats. Strengths Stable earnings and revenue of Starbucks is major strength of the organization. The organization is ahead of its several potential competitors in terms of financial profitability and strengths. It is the most leading and recognizable brand within global coffeehouse industry. Effective leadership strategy and innovative vision of Strabucks are one of the important assets of organization. Loyal customer base across the globe is the major competitive advantage. Effective location of retail stores based on market demand is the most successful business strategy of Starbucks. Effective brand extension strategy and high quality of products have increased customer preference. Weaknesses Aggressive business expansion strategy can lead to cannibalization. It can dilute the Starbucks experience. People are trying to consume healthy products. It has found out that several products of Starbucks contain high level of fat and...
Moreover, the organization can implement Porter’s generic strategy to become the leading player based on several parameters, such as cost, focus and differentiation strategy. Positioning is another important strategy that can help marketing team of an organization to position their products and services according to the market demand and customer preferences.
Justification of Strategy Adoption
Starbucks need to focus on marketing mix strategy and Porter’s generic strategy to improve their business performance and reduce competitive threats. It is true that the organization implemented niche marketing strategy (Mangold, 2010). Recent economic slowdown forced global customers to purchase less and save more. Therefore, it is important for the organization to revise the pricing of products through effective marketing mix strategy. On the other hand, implementation of Porter’s cost leadership generic strategy will help the organization to control operation cost. They need to introduce new products for the people of middle class income level. Moreover, they need to implement competitive pricing strategy for the products. This strategy will help the organization to introduce competitive priced products. ...Download file to see next pagesRead More
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