The paper “ Starbucks Corporation - an Industry Leader Thanks to the Strategic Management Approach” is a worthy variant of the case study on management. After long industry domination, Starbucks could soon or later lose significant market share as a result of various factors affecting demand. However, past statistics show that the company has had positive gains with respect to sales and income. Notably, the sales and income of the company is a primary consequence of the demand for its products and services. However, the economy and changing times have been forcing Starbucks to reduce their prices in order to match with close competitors.
This is of much essence on the pricing strategy of the company considering that its products exhibit elastic demand. If the company increases prices for its products it will mean that daily consumers will opt for alternatives from other companies trading at cheaper prices. Consequently, demand for Starbucks’ products thus significant loss of market share. The pricing strategy of the company also ought to keep into consideration the decline of consumers’ income. This will have the implication of low purchasing power among consumers thus less demand for Starbucks’ services and products.
Ideally, several factors threaten to minimize the demand for Starbucks’ services and products. According to this demand estimate, people have come to the realization that there are alternatives to Starbucks’ products; indeed, the blends can still be brewed at home. Therefore, Starbucks ought to reinvent itself with emergent tastes and lifestyles in order to remain a significant player in the market of the coffee shops. IntroductionStarbucks Corporation is an international coffee company with headquarter in Seattle, Washington, DC.
Operating as Starbucks Coffee, the company is also an outstanding example of a coffeehouse chain (Starbucks, 2015). According to the current ranking, Starbucks is the most outsized coffeehouse corporation in the globe leading the second-placed Costa Coffee of the United Kingdom.