Question

Problem: In order to do so Starbucks has closed 900 stores and eliminated 34,000 jobs. Strategy: Growth strategy of Starbucks is to have more revenue with lower costs. For strategy identification, let’s take a look at the way Starbucks sells their items, increase in their sales rate, attract more customers and advertise more but spend less. Opportunity: Starbucks is refocusing on some of the areas that decrease risk and up-front investment. This includes expanding foreign stores, with aid of partnerships that share risk and costs, selling VIA instant coffee and other products in retail and convenience stores, and reinvigorating the Seattle’s Best Brand coffee. Evaluation: The strategy was proposed after following a defined process of analysis and drawing inference as all the study and their result is also included in the proposal. Recommendation: As Starbucks is cutting down jobs, they can implement self-ordering interactive screens where users can place their order. please elaborate more on the problem and incorporate more to make it 1-2 pages long.

Answer 1

Strategy to impact better returns on lower investment for starbucks:

                                                                                 Since the product like starbucks has already been well established and wide reached around the globe, there is no need of any special advertising techniques to attract the customers, however to retain the customers and spot new customers, it is necessary to provide the details of various new menu and offer currently starbucks was providing, which directly impact the sales rate.

However if there is need to attract more and more new customers, it is necessary to incorporate with few deals selling companies in the local regions like, Fyndus, Groupon and various deal making which they will do the promotion on behalf of starbucks and will gather more and more customers. Also ways like providing starbucks membership cards, credit points will retain the customers and word of mouth from the valued customers of starbucks will retain the new customers.

Also incorporating stalls in public event and courtessy freebies and beverages in region where starbucks trying expand their business will promote the product more vibrantly than other ways of promotion, which will assure a better return to Starbucks.

Further to expanding world wide, it is better to approch partnership or franchise method to reduce the direct marketting and setup cost on locality. Also the local partners of starbucks have already studied the market of their local, since it will get wide reached by those partners comparing to our traditional approach. Further selling the VIA instant coffee in retail and convenient stores will make the product to get into House easily and will give a better stand in market for starbucks.

In case of cost reduction factors lot of the human services will be replaced by the automation system like, touch screen panel to self order and pay. It will reduce the time a lot, because, while human taking order, it includes we have to mention the preffered item and the counter guy has to input and then confirm it again with you, then additionally it takes time to complete your payment, however by this automation approach it will reduce time and the human capital.