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The Analysis of Starbuck’s Strategy Position, Integration and Future Outlook.doc
The Analysis of Starbuck’s Strategy Position, Integration and Future Outlook
【Abstract】Starbucks was founded in Seattle, Washington in 1985 and has since grown into an international conglomerate, serving its staple products to the masses. It is known as the largest coffeehouse chain in the world.Starbucks manufactures, markets, and distributes high quality products that extend far beyond just coffee. This paper adopts Donald C. Hambrick’s Five Major Elements theory to analyze the industry background, internal external environment, organizational strategy and summarizes its successful marketing experience.
【Key words】Starbucks; Strategic Position; Customer Experience; Marketing Strategy
I. Introduction
Starbucks was established in 1971 by three local businessmen to sell high quality whole beans coffee. In 1981 when Howard Schultz visited the store he plans to build a strong company and expand high quality coffee business with the name of Starbucks. They open its first coffee store in Seattle, Washington. In 1990 Starbucks expand its headquarters in Seattle and also build a new roasting plant. Today it operates 23,768 locations worldwide, including 13,107 in the United States, 2,204 in China, 1,418 in Canada, 1,160 in Japan and 872 in South Korea.
They have been able to set themselves apart from others by leveraging their product differentiation strategies, including the provision of premium product mixes. For the past few years, it has been expanding its offerings to include about 30 blends and single-origin premium coffees, juices, pastries, sandwiches, coffee mugs, etc.
II. The Five Elements of Starbucks’ Strategy
The five major elements of this strategy can be defined using the framework described by Hambrick and Frederickson in their 2001 article [Hambrick]. There are five major elements of strategy described in this framework: arenas, vehicles, differentiators, staging, and economic logic.
The arenas are the spaces where the company
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