Starbucks Corporation’s Differentiation Strategy Case Study

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Howard Schultz was the person who managed to turn Starbucks into one of the most recognizable brands on the planet. Moreover, in many parts of the world, the brand has become the default option for take-away coffee. Schultz was a visioner who has implemented numerous strategies that helped to provide an outstanding experience to millions of customers and made them get emotionally attached to the quality of the drinks. At the same time, Kevin Jonson is determined to run the company as a highly influential multinational. The new CEO’s emphasis is on customer service, horizontal expansion of product lines, and the introduction of software that helps the company to accumulate large volumes of leverage and perform some banking functions.

I believe that the differentiation strategy is currently implemented in Starbucks. The company already dominates several spheres associated with the coffee business. Although remarkable efforts are made to enhance the quality of the service, the focus has already shifted to exploring new opportunities, such as technological innovations and espresso machine manufacturing. Moreover, the company has recently introduced severe policies regulating baristas’ responsibilities, which significantly alters the original approach to employees. Chang (3) claims that enhancing brand image can help Starbucks substantially improve customer loyalty. Howard Schultz was determined to create an appealing, friendly atmosphere of a local café. He was initially inspired by the quality of coffee and service in Italy and wanted to reproduce, market, and expand the welcoming atmosphere created by highly-motivated employees treated as partners.

The company seeks to become a part of every significant ecological trend, such as decreased plastic use and support for small family-owned coffee plantations. Modern businesses, heavily dependent on young customers, always try to escape potential social pressure and cannot stay away from such initiatives. Fiscal years 2015-2017 are considered successful for Starbucks, as the introduction of new strategies allowed the company to continue rapid growth and open stores in new regions, with the domestic market showing the fastest growth and remaining the cornerstone of the business.

Work Cited

Chang, Wen-Jung. “Experiential Marketing, Brand Image and Brand Loyalty: A Case Study of Starbucks.” British Food Journal, vol. 123, no. 1, 2020, pp. 209–223, Web.

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