Question

Discuss Starbucks’ need for a new strategy in the late 2000s. Based on the analysis, what are the strengths and weaknesses of Starbuck’s current strategy?

Answer 1

There can be some changes in new strategy of Starbucks in late 2000s, but to know the changes that Starbucks needs, we have to analyse the current strategy that they follow, their strenghts and weaknesses are listed below:

Strengths of current Starbucks stragy:

• Focus on customer service: Starbucks' customer service is a force to reckon with, when it comes to serving.
• Provide high quality: Starbucks' strategy revolves around their main attraction, that is good quality product.
• Consistency: Starbucks' always try to maintain the consistency of their peoduct, and as a result their last product of the day is as good as the first product of that day.
• Variety:  Starbucks' have managed to provide variety in the quality of product, they provide variety in simple product like tea and coffee.
• High Brand merchandising: Starbucks has created a high brand and they are doing a very nice job in merchandising it.

Weakness of current Starbucks strategy:

• Too Late: Starbucks started to late with their Advertisements, they started investing high cost in advertising for last 4 years.
• No use of marketing: Starbucks' use of marketing is nearly zero, and that's a big weakness for any business
• Focus too much on ethical brand image: They focus so much on ethical brand image that some time becomes hard for them to bring in new cahnges.
• Unconventional way of branding: Because they have made their business a high brand in such a diffrent way that they still follow some unconvetional ways to promote there brand. Like Word of mouth publicity rather then social media
• Word of mouth publicity: Starbucks still believes in word of mouth publicity rather then social media publicity.

After analysing all the strengths and weaknesses of the current Starbucks' strategy we can say that there is some room for improvement and change, and there can be a strategy made. Some key points that should be focused on are:

• Right Balance: There should be a right balance between threir way of promotiing th brand and the way that they believe is right way to do thing, although they have started advertising but they should continue there way of promotion too.
• Invest in Marketing: Starbucks' biggest weakness is that they do not believe in marketing, but in todays business competition, no one can rvive without right marketing strategy
• Be more flaxible: Starbucks' should be more accepting to change like there competitors.