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Starbucks Company Management

Words: 842
Paper Type: Report
Subject: Case Study

Apple’s current competitive strategy

Notably, many analysts concentrate on measuring the enduring strength of Apple’s mushrooming Smartphone supremacy. They explore the obvious direction; the comparison of advancements of the iPhone against products offered by competitors such as android and blackberry. However, Apple employs a different strategy.

The company ensures that it uses a simple multiplier factor that involves its clients. Once the clients purchase their first Apple product, the company’s other products become natural. The strategy is attained by ensuring that the hardware and software are flawlessly tied together to an incorporated operating system. One operating system functions very much alike to others in different products (Magee, 2013). An operating system on a computer functions the same way as the one in an iPhone.

The innovation strategy for maintaining a competitive edge for Apple is ensuring that the prices of the products are designed through price skimming. Once the products have entered the maturity stage, the prices should be slashed. A new product should then be introduced with more advanced technology but functioning on a similar operating system (Magee, 2013).

Effectiveness of Starbuck’s current business strategy in terms of pricing, differentiation, and market demand

Starbucks’ sales continue to soar due to the viral marketing strategies employed by the company. The company places emphasis on the quality of products thus creating huge market demand. Although the company sets its price higher than most competitors do, the company leads in customer satisfaction through the scrumptious taste and aroma.

Starbucks successfully ensures differentiation by offering unique coffee in a relaxing atmosphere. Customers are attracted to enjoy the ‘unique Starbucks experience’. The concept is a strong attraction that keeps the clients attached to the company.

Starbucks should consider modifying the current strategy to help implement new distinctive competencies. The company has succeeded in creating its niche with loyal customers in the coffee industry. It should further ensure that it attracts new customers through aggressive marketing. The company should employ conventional marketing strategies including advertisements and promotions. This will increase the company’s public presence.

Competitiveness of Starbucks’ positioning in its industry using Value Creation Frontier (VCF) model

The VCF illustrates a company that is practicing one or more of the competitive advantage of construction blocks. The competitiveness of Starbucks is derived from innovation as the main strategy that differentiates it from competitors. The company was a pioneer in introducing the business model that offers a sociable environment. People interact while talking about current affairs as they enjoy the delicious varieties of coffee products offered.

Among the strengths of the differentiation strategy of this company, is the capacity to offer numerous types of coffee under one roof. The company has established ambiance that none of the competitors come close to in addition to the strong brand recognition. The inability to prove recession-proof is among the company’s weaknesses.

In addition, the company’s outlets look alike across the country hence making it monotonous for customers to enjoy coffee in different locations. While changing the format of the stores would be suggested to make each outlet unique, it would also mean that the customers may assume that the outlets belong to a competitor thus leading to the company downfall.

The functional level strategy of UPS and FedEx

FedEx successfully implements a differentiation strategy. It is the pioneer in the provision of an overnight flight delivery service. The clients are willing to pay higher costs considering that the company can satisfy the unmet need in an innovative way. On the other hand, UPS had to play ‘catch-up’ with FedEx through a similar move. Whereas UPS had become a leader in ground package delivery, the move by FedEx was disruptive. UPS responded by implementing the same strategy for national and international parcel delivery.

The salvation of UPS business came through IT innovations at the operational levels to track the parcels. This has enabled the company to respond more efficiently to customer concerns. In fact, customers can know the position of their packages through tracking. On the other hand, FedEx responds to its customers through priority services model. Return customers are given special attention.

Innovation strategies of UPS and FedEx

FedEx is inherently a technology-oriented company. It ensures that all its activities are aligned with the company’s vision to be a global leader in the courier service industry. Consequently, the company has a department (FedEx Innovation) that ensures the continuation of innovation as an integral part of the company’s culture. However, to ensure the company responsiveness to consumer needs, FedEx has dedicated personnel that responds to customer needs on the phone, social platform, and email for 24 hours.

On the other hand, UPS ensures responsiveness through the ‘hub and spoke’ model for parcel courier services. It has developed the ‘package flow technologies’. The package flow technology is a suite designed to extend the company’s competitive edge through the delivery of multiple services to its clients. These include air, ground and international delivery through a single delivery vehicle. Customers with different packages can receive commodities through a single transport mode.

Reference

Magee, D. (2013). Apple’s competitive advantage: Multiple products that integrate as one. Web.