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Strategic Position Statement Analysis: The Starbucks Case

Established in 1971 in Seattle, Starbucks (a global coffee retailer) was established with the vision of growing and becoming the premier coffee seller whilst maintaining its core philosophy and principles i.e. warm and ethical culture at the Starbucks coffee houses. The Starbucks mission is based on inspiring human spirit with the slogan that reads “one person, one cup and one neighborhood at a time”.  The vision emphasizes the company’s aim to become the leader guides the firm’s plans, activities and employees. When it comes to the Starbucks strategy it is evident that it is strongly influenced by the company’s vision. This paper reflects upon this statement in light of the model presented Collis and Rukstad (2008) that comprehensively describe the different elements of strategy in three categories- objective, scope and advantage, as shown below.

Mission:                      Human spirit and connection

Vision:                        Finest quality coffee, growth and principles

Strategic Position

Statement:                  “To maintain Starbucks standing as one of the most recognized and respected brands in the world” [1]

Objective -Become the global leader in coffee industry

Domain – establish new channels of distribution

Advantage- Uphold the brand value and recognition through its high quality product, human appeal factor, consumer loyalty and CSR activities

Starbucks Key Strategies

According to the Six Template Matric Framework presented by Pitt, & Koufopoulos (2012), Starbucks is striving toward broad-based differentiation. Its brand equity is amongst its core competence and point of differentiation. It have been able to develop this value through several differentiation strategies i.e. premium product mix to leverage the best customer experience. These strategies are described below:

1. Starbucks Store Appeal and Ambience- Since its establishment Starbucks retail strategy has been a strong point of differentiation. The stores are known to provide a friendly, comfortable and social customer experience. The stores are well maintained, neat and managed by highly trained staff, namely barista’s who played a critical role in developing customer loyalty. The chains were to create a cultural ambience by embracing the community ethos and culture to build a true relation with its customers. What enables the company’s glaring success was its customers perceived the coffee houses as their second home[2]e. a place to unwind while having coffee and hanging out with friends. Equipped with trendy music and wi- fi the stores have a ‘cool’ appeal. Moreover the locations of these stores are selected strategically among the prime, highly visible areas- suburban retail centers, offices, university.
2. Product Quality- During this analysis one basic strategic component that the company faltered to meet was the promise of provide the finest quality of coffee. Sources are that competitors like Costa, Dunkin Donuts, Tim Hortons and McDonalds served coffee with similar quality but at cheaper prices.

Growth Strategy- Ranked in the top 100 brands globally obligates Starbucks to have a proactive and aggressive approach towards growth… Read More