The paper “ Stаrbuсks' Global Strategic Management” is a thrilling option of case study on the management. In any market environment where competition is inevitable, companies develop strategies that make them dominate the market. This has also been the case for Starbuck Coffee. Formed in 1971 with the aim of selling coffee beans and equipment, the company has currently expanded to roast coffee and sell drinks as well. Starbuck coffee has many coffee stores in various countries in the world such as Canada, Puerto Rico, the United Kingdom, China, Hong Kong, and even India.
The company is rated the largest coffeehouse in the world with over 140,000 employees and five million customers on a weekly basis (Bussing-Burks, 2009). Starbuck’ s Coffee deal with many products such as hot and iced espresso beverages, salads, pastries and sandwiches, freshly brewed coffee, coffee, and non-coffee beverages. The machinery used in making the end products include coffee brewers, coffee grinders, and espresso machines. Other products are compact disks, books, and gifts that are given to customers. The realization of all these has been made possible through understanding the importance of company branding, which makes a company prevail despite the stiff competition from other companies in the same industry. Over the years, the management of Starbucks ’ Coffee has maintained the importance of developing and maintaining its brand.
Through proper customer satisfaction, the company has beat its competitors to become the most preferred one in the market. As a marketing strategy, the company has a number of internet domains such as Starbucks. com and Starbucks. net, which enable customers to access information about their products online. In addition, the company has many copyrights for products such as promotion and packaging materials as well as packaging materials. The marketing strategies developed and applied by the company have enabled it to dominate the market despite their high prices.
The company enjoys a monopoly in the market since it has total control over its high prices of goods. Despite the stiff competition from other companies in the beverage industry such as MacDonald’ s, the logos developed plus the splendid services offered have placed it at the top in the industry. By doing all these, the company realizes its mission, which is, “ providing the customers with an opportunity to make good coffee, while engaging in discussions in a relaxed atmosphere” . DiscussionAccording to Michael Porter, the success of any company is determined by five factors.
These include; the bargaining power of the customers, competition, entry of new products into the market, entry of new companies into the market within the same industry and ha bargaining power of the suppliers. All these factors when properly taken care of can scale up a company even in the wake of very stiff competition within the market (Magretta, 2012). For Starbucks Coffee Company, the competitive advantage within the market enables it to thrive despite all other difficulties experienced in the market place.
There are many other coffee houses, but this company enjoys a monopoly in the market despite the high prices of its products. The increased market competition is made possible by the ability to offer products of very high quality to the consumers and branding which increases the preference of its products in the market. The company also has very clean and well-maintained stores that reflect the cultures of the communities within which they operate thus increasing their competitive advantage.