Analysis Of The Business Level Strategy Of Starbucks

Ch. 5 Business Level Strategy

Starbucks does its best to offer a unique and memorable experience for each and every customer. As part of their responsibility to their customers, they are committed to offering coffee of the utmost quality. Starbucks believes that employees are a major part in providing an excellent customer experience so they are able to maintain a long-term relationship with consumers.

Through the use of multiple business level strategies, Starbucks has been able to become a leader in their market and differentiate themselves from the competition. In order to cut costs, they have started using 100% recyclable or reusable cups. In addition, they opened a roasting plant in South Carolina to support firms in the southeast region to reduce logistics

In order to build and maintain their competitive advantage, Starbucks has used multiple support strategies. They have well designed stores that are visually pleasing and welcome everyone through firm infrastructure. Human resource management provides good benefits and helps with the college achievement plan, and internships. The company has expanded its technological developments by adding WiFi, phone charging stations, high-tech coffee machines, and developing a mobile app. Through procurement, Starbucks has been able to reorganize its supply chain, reduce costs, improve execution, and lay the foundation for future supply chain capability. Starbucks’ primary activities lead to the creation of the product and excellent service they provide. Through inbound logistics, they select the finest quality coffee beans and do not outsource procurement to ensure quality. They operate and provide their great customer service in over 65 different countries and use outbound logistics by selling all of their products in licensed stores only. Finally, they focus on superior marketing and sales to sell their products