Starbucks' Strategy
1. What are the key elements of Starbucks' strategy as of 2004?
The key elements of Starbuck's strategy were as follows:
a. Grow the business by constantly adding more stores around the world: The Company has had tremendous success in opening stores around the world. It has applied its global strategy effectively and has enjoyed increase in sales from global operations.
b. Store design, planning and construction are also part of the strategy. The company began to create its own in house architects and designers to design Starbucks locations. Locations are designed for customers to meet, relax or simply enjoy a peaceful interlude in their day. Each location was designed to signal "best of class" and to reflect the personality of the community and the neighborhood.
c. Product Line: The Company has a vast product line and is constantly engaging in efforts to develop new ideas, new products, and new experiences for their customers.
d. Employee selection and training are also elements of the strategy. Starbucks employed diverse people which reflected the community. Starbucks trained each employee to perform to their best capabilities.
e. Increasing sales by new means of selling: Starbucks indulged in mail order sales. It published a mail order catalog that was distributed 6 times a year. It also has an electronic store on the internet though which Starbucks sells its products.
f. Joint ventures and Licensing: Starbucks entered in to joint ventures with PepsiCo and Dreyer's Grand Ice Cream. It also has licensed agreements with Marriott Host International, Horizon Airlines, United Airlines, Nordstrom's,...