6. Starbucks Strategy

http://www.evancarmichael.com/Other/612/Starbucks-Strategy.html

Hello, BS team members,
All we know about Starbucks and we like to drink it. For me, when I drink Sturbucks coffee I feel comfort, I do not know why but while I was reading the following article I got the answer. As we know Strabucks went public in 1992 with only 165 stores. Today, it has 10, 000 stores and is planning to open another 10,000 all over the world. What is the secret of strategy? They said “ It is simple, saturate the market. At that time accepted business model was to spread out their stores based on demographics and other companies opened their new chain of stores as much as they could. However, Starbucks strategy was against it. Howard Schultz, CEO of Starbucks, decided that their strategy would be to cover an area completely.
Another unique strategy Of Starbucks is paid off. The strategy to cover one area completely helped them to get big market share and also huge number of customers. With over 20 million regular customer per week, the could keep sales risen roughly 20% each year. Awareness of customers keep returning this money to Starbucks.
Advertisement strategy was word of mouth advertisement. They believe that by creating an intimate and welcoming environment in their stores, as well as providing a great cup of coffee, patrons will not only keep coming back for more, but will tell all their friends and family about it too. An addition, The Starbucks strategy involves smart joint ventures with right companies, such as Pepsi, Coca-Cola.Starbucks continues to keep its customers happy and rely on non-traditional means of attracting new customers; that is the Starbucks strategy. Are they worried about over-saturation? Absolutely not, says Schultz.
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