25 May 2010IntroductionPure competition is a market that deals with homogeneous products or services, which means that it has many consumers and producers, and thus there is no single producer who is large enough to take advantage of the market on their own. In most instances, such markets are hard to come by but some businesses such as the first and beverages industry can illustrate a nice example. Thus, the aim of this paper is to utilise Starbucks and show that it is within a purely competitive market through incorporating how they approach and do business.
The following graph shows a normally demand and supply curve that is common in many business dealing with supply and demand of products laying the foundation of pure competition. Starbucks is an organisation that started in the year 1971 in United States. It is one of the largest coffeehouse worldwide; it consists of 16000 stores found in 49 developing nations, not forgetting its major market that is United States which carries 11,000 stores (McFall, 2004). The main objective as outlined in their company’s statement is to be the best coffee stores that has facilitated in enlarging the company’s market strategies to greater heights.
It began its major function as a coffee store that only offered coffee and coffee beans in roasted form in United States. It’s therefore clear that, the main product for this company has been coffee. This product has been of great benefit in this company because it has improved the company’s name, thus has facilitated the opening of new branches in other regions more so the Middle East. The coffee is basically blended by use of distinctive coffee particles that appear to be natural in nature and thereafter is packed in different varieties basing on market patterns, locality and demands.
Moreover, some of its major competitors include MacDonald, Java and numerous other coffee and tea providers. Vision statementThe company has a vision of being recognized as an excellent coffee producing organization in the entire continent like McDonalds and Coca Cola companies (Mejia, 2008). Starbucks Company has come-up with a new and extraordinary technique that will facilitate in achieving the company’s objective. This new technique will focus on product diversification.
The company produced new products that fit their clients’ taste, demands and season. By way of doing all this, the company have developed different subsidiary products like pastries and warm sandwiches whose role is to follow after coffee (Certeau, 1984). Nevertheless, many other organisations have similar vision and market objectives ensuring continuous employment of strategies to ensure that they succeed. Arrival of productsThe company started stocking its products accompanied by varieties of snacks in one of their hoards when they discovered that most of their customers preferred coffee accompanied by a snack.
This pattern brought some benefits in the end results and therefore the company got an opportunity to enlarge its sales volume combined with the extension of the customer base. According to the chief executive officer Howard Schultz, the company has smoothly succeeded in different nations due to the provision of varies varieties which are sold at affordable prices hence most people buy this products. Out of this deal, the continental development of this company, has reached to a shooting market as an aim of the company’s extension strategy.