Running Head: Learning Sets 3

Strategic Choices in Strategy

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Table of Contents

Introduction......................................................................................................................................3

Strategy of Business........................................................................................................................3

Competitive Advantage of Innovation.............................................................................................4

Positioning, Segmentation and targeting.........................................................................................5

Strategy of Multi-channel................................................................................................................5

Conclusion.......................................................................................................................................6

References........................................................................................................................................7
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Strategic Choices in Strategy

Introduction

It is the largest coffee shop chain and beverage brand in the world, with a unique history

in the espresso industry. Starbucks was founded in 1985 and is headquartered in Seattle, USA.

This premium espresso brand is growing rapidly and has a presence in 75 countries worldwide.

In its 33-year history, it is known for extracting some of the most diverse flavours in espresso

(Chauhan and Campbell, 2021). An unusual item is very important for an unusual brand, and

Starbucks has an unusual item. We look for more realistic ways to offer our customers the best

espresso in the universe, without focusing on taste or quality. However, Starbucks is more than

an espresso brand. The brand has earned a reputation as a consumer-focused company, and so

pays close attention to customer service even when elements of the industry change from the

moment to the moment.

Strategy of Business

Quality is at the heart of Starbucks' business strategy. It is a premium brand that sells

only quality products. It is also the main reason the brand uses to differentiate itself. The

Starbucks business model is also divided into different lines, but no matter when a customer

visits Starbucks, the quality and variety is outstanding (Peng, 2017). Starbucks has been using

this recipe since the beginning of the company and has never made any changes in quality or

taste. Starbucks products are highly priced, and regular customers of Starbucks shops tend to be

quality customers. The reason for the higher price is the quality of the product (Grant and Jordan,
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2015). The taste and quality that Starbucks offers is almost essential, so customers will pay more

for better quality. Starbucks' sales growth shows how profitable this business model is.

Competitive Advantage of Innovation

There are three steps that need to be taken to gain a competitive edge. These are cost,

segregation and core performance initiatives. The researcher describes a segregation strategy as

an object or administration that communicates value and is overvalued by customers (Gomes and

Yasin, 2017). Product segregation is central to Starbucks' strategy for achieving competitive

advantage. Starbucks achieves this segregation through superior customer service and high

quality espresso. According to a study, Starbucks shops have a more attractive style than

complimentary cafes and baristas are friendlier. The strategy of separating the premium supplier

from the espresso supplier has given Starbucks a competitive advantage in terms of support

(Hadden, 2018). Starbucks also introduced the Starbucks Rewards card, which offers many

benefits.

This helped to keep customers coming back to purchase and increase their loyalty.

Starbucks also sent out a Starbucks Customer Experience Survey, which asked customers to

share their views on their association with Starbucks. This clearly shows the importance

Starbucks places on long-term cooperation with its customers (An, Choe and Kang, 2021).

Starbucks uses the finest coffee beans to make espresso. The organisation's employees regularly

and occasionally travel to find suppliers that meet their guidelines. Similarly, Starbucks buys

espresso coffee that is certified organic or fair trade. In 2009 alone. Starbucks purchased 14

million pounds of safe and natural espresso. Espresso is also brewed in a Swiss Mastrena
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espresso machine (Feuillet et al., 2020). Wherever you visit a Starbucks bistro abroad, you will

be greeted with this natural flavour.

Positioning, Segmentation and targeting

Segmentation, targeting and positioning Starbucks involves identifying the right group of

people from the general population who will become future customers, positioning products and

services that meet their needs and requirements, and tailoring advertising activities to that

segment (Peng, 2017). In essence, segmentation, targeting and positioning is about deciding who

will serve and position products and services appropriately.

Strategy of Multi-channel

Starbucks is developing a plan that respects its long-term investors. Starbucks has built a

strong and secure organisation that allows new and existing businesses to grow productively.

Analysts say the next phase of growth will be to expand Starbucks customer service beyond the

third point in all aspects of the day using multiple brands and channels (Gomes and Yasin, 2017).

Starbucks USA's retail operations and customer relationships are the foundation for building our

sustainable and manufactured capabilities, and we will add new capabilities across multiple

channels to accelerate our model that no other organization can replicate. Starbucks Coffee USA

has demonstrated that there are significant opportunities to grow a profitable retail business in

the US (An, Choe and Kang, 2021). Existing shops can grow by expanding their boundaries,

extending their opening days and subdividing their shops with new ideas and configurations into

areas of need.
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Starbucks has made significant improvements in the financial aspects of its shops in

recent years. Burrows added that by connecting with customers through targeted campaigns such

as My Starbucks Rewards and the Starbucks Digital Network to reduce peak hours and earn

more daily points, these broader retail upgrades. The opportunity to use them to grow the

business is now there (Chauhan and Campbell, 2021). Burrows also said that while the company

will not be opening new shops in the US at the pace it once did, it will be looking at new

territories in key regions to cover the opening of major retail projects and the exact time each

shop will open.

Conclusion

Much has been said about Starbucks and its business model. There are some excellent

books and articles about Starbucks, such as "Management Techniques" and "Business Strategies"

by Howard Schultz. One thing is certain: Schultz's business model is fruitful (Grant and Jordan,

2015). Starbucks had to choose how to improve the mix of corporate and active shops to get the

best results. The culture of integration is another big advantage of this business model. In any

case, the key characteristics of both are simplicity and ethics. These are the key ingredients of

Starbucks and the main reason why Starbucks has gained strong recognition in the land market.

Starbucks, despite being a unique brand, has become the first choice for millions of people. And

because of its brand, Starbucks has become the first choice for millions of people in the market.

The organisation has improved this section several times over the past few decades (Hadden,

2018). This has been achieved through a constant focus on quality, sustainability and ethics. The

Starbucks model shows that you have to be willing to make some recognitions to recognise the

value.
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References

An, Y.H., Choe, S. and Kang, J., 2021. Ways to win: strategic choices, institutions and

performance in sub-Saharan Africa. Multinational Business Review.

Chauhan, A. and Campbell, C., 2021. Risk, trust and patients’ strategic choices of healthcare

practitioners. Sociology of Health & Illness, 43(1), pp.82-98.

Feuillet, A., Terrien, M., Scelles, N. and Durand, C., 2020. Determinants of coopetition and

contingency of strategic choices: the case of professional football clubs in

France. European Sport Management Quarterly, pp.1-16.

Gomes, C.F. and Yasin, M.M., 2017. Toward promoting effective strategic performance: the

relevance of the alignment of performance measurement and competitive strategic

choices. International Journal of Business Excellence, 12(3), pp.329-350.

Grant, R.M. and Jordan, J.J., 2015. Foundations of strategy. John Wiley & Sons.

Hadden, J., 2018. Review of The Authority Trap: Strategic Choices of International NGOs.

Hoehn, A.R., Solomon, R.H., Efron, S., Camm, F., Chandra, A., Knopman, D., Laird, B.,

Lempert, R.J., Shatz, H.J. and Yost, C., 2017. Strategic Choices for a Turbulent World:

In Pursuit of Security and Opportunity (Vol. 6). Rand Corporation.

Peng, M.W., 2017. Cultures, institutions, and strategic choices: Toward an institutional

perspective on business strategy. The Blackwell handbook of cross‐cultural management,

pp.52-66.