Strategic Management-Case study - Research Paper Example

Strategic Management - Case study Table of Contents Strategic Management - Case study 1 Table of Contents 2 Starbucks’ Strategy 3 Leveraging Starbucks Resources & Capabilities 3Responding to McDonald’s Offer 4References 6Starbucks’ StrategyThe strategy of Starbucks which has contributed towards it success is its ability to induce the consumers that the stores of the company does not only offer coffee but along with it offers a rich experience and encourages the consumers through the experience to be pampered by it on a regular basis.

The stores of Starbucks are said to present a warm feeling to its consumers which makes them visit the stores repeatedly (Gambardella, 2009; Kachra, 1997).The strategy fits well with the potential and the capabilities of Starbucks as it has been successful to incorporate the culture of coffee among the people. They have been quite successful in providing a great experience to the consumers through their stores. The stores are planned at locations meant for social interaction among people between work and office.

This particular strategy has helped Starbucks to attract a large number of consumers. Starbucks provided its consumers with a place where they could get together or meet people on a periodical basis when they were not working. This strategy followed with the idea of a leading brand of specialty coffee which is professed to be a reasonably priced luxury helped the company to fit in and promote the coffee culture among the consumers (Gambardella, 2009; Kachra, 1997).Leveraging Starbucks Resources & Capabilities Starbucks has effectively recognized and projected itself to be a place apart from work and home where the consumers can indulge in some superior quality coffee and relax themselves.

This image was developed by the company through proper planning of the stores and making them comfortable with the help of furniture and soothing music. Starbucks should adeptly leverage its capabilities as well as resources by offering an array of services along with the rich ambience. It should entail services like handicapped access, common spaces for the purpose of teamwork and alliance, wireless internet and also complimentary books (Gambardella, 2009; Kachra, 1997).They should also expand their menus in order to lead in the competition and to cater to the altering requirements of the consumers.

Starbucks should keep bringing in fresh products. It should focus on expanding its stores at places where a high traffic is observed for the stores. Their stores need to be located at convenient places that would be easily accessible for people who are quite busy with their work schedule. Starbucks should also plan international advertising programs and venture into various distribution channels as well. Leveraging its resources and objectives through the suggested ways would help Starbucks to attain its growth objective (Kachra, 1997).

Attaining of the growth objective would help the company to gain more popularity which would help it to promote customer loyalty among the existing consumers as well as attract fresh consumers.Responding to McDonald’s OfferStarbucks should turn down the offer of McDonald’s. It is because of the fact that Starbucks is not only known for its unique assortment of coffees but also for the wonderful experience that it provides in its stores all over. The company focuses on offering a comfortable ambience where one can come and relax with some good coffee.

Accepting the offer of McDonald’s to provide Starbucks’ coffee in their stores would strip the consumers off the rich experience of the Starbucks’ stores. The company is known for their relaxing environment and ambience which also acts to be one of its competitive advantages. Allowing its competitors to serve their coffee would have an adverse effect on the competitive advantage. People preferring Starbucks coffee would find it any of the other stores like McDonald’s which would decrease the need and the requirement to visit one of the Starbucks’ stores.

This might help the consumers to have some great coffee but would deprive them of the rich experience (Kachra, 1997).ReferencesGambardella, P., 2009. Application of Strategy Dynamics: Starbucks Corporation. System Dynamics Society, pp. 1-29.Kachra, A., 1997. Starbucks. Richard Ivey School of Business.