Who Is the Starbucks Customer - Essay Example

Starbucks has been seen using the Horizontal Integration variable in many of its strategic acquisitions, joint undertakings, and partnerships. The use of Vertical Integration constituted one of the key success factors for the success of the firm. The company has integrated backward in opening many coffee roasting plants; and in the same way, integrated forward in controlling the distribution chain of its products. Such segmentation variables enhanced the growth of the company from a simple shop in Pikes Place Market in Seattle to an international company with a sales turnover of more than $2.1 Billion. It has acquired the market in more than thirty countries over the past 21 years.

The success of Starbucks can be attributed to its name-branding. In addition, getting into a contract with TAZO tea and Albertsons, and introducing new products into the market greatly contributed to its growth (“Starbucks: Just who Is..”). The Starbucks brand experience has changed over time. Customers now see Starbucks as a place to grab a quick cup of coffee with them to their office. Customer behavior has changed a lot in recent years. Starbucks has utilized the principles of market targeting to keep up with the changing consumer preferences. Such changes evolved within the firm and constituted a change in the Starbucks experience.  The brand experience is the ‘soul’ of a firm in its successful operation. Besides, the firm’s willingness to be a part of a social setting also plays an important role in its operation. On the other hand, some Starbucks customers have changed over time; because they might not be feeling quite comfortable with the new strategies of target marketing.  And they might not be feeling quite good about paying heavy prices for the new Starbucks experience.

Starbucks accomplished its maturity stage and has exploited almost all its investment options. The only new innovations taking place within the firm are the periodical introduction of new products and the establishment of new stores around the globe. The company is on a path of growth even while facing so many risks such as targeting only higher-income groups and more professional individuals (“Starbucks: Just who Is..”). Though such risks have slowed down the launch of new products, it is developing a seasonal change within the firm. Starbucks relies on sustainability in the American market as well as large returns from the international markets. Therefore, Starbucks is expected to return to the revenue and growth that it once enjoyed in the market. Although its growth faces many disadvantages as its competitors do, it will definitely bring high turnover in the coming years. Starbucks has been developing exponentially for many years, and now many firms perceive Starbucks as a model for the management of successful business strategies.