Starbuck Industry affiliation Starbuck Industry Starbucks coffee industry has employed various business strategies, which have enabled it to stay on top of its growing and volatile industry. The industry employed strong differentiation strategy in an attempt to service a wide number of customers with different tastes and preferences. The strategy has been successful, as differentiation has lowered the threat of customers. To this end, the business has been able to drive consumer’s preferences and play a significant role moving a product upscale. On the other hand, the pricing strategy executed by the company has rationally transferred its prime product from being perceived as an exclusive luxury goods.
In this perspective, the transition has made it possible to be purchased by all customers irrespective of their social status (Selby, 2012, p. 126). The company’s brand exudes an understanding of people’s lifestyle, values, and need. The company’s focus to the experiential factors has been pivotal to its success. The pricing strategy employed only suit high-income countries. This therefore makes it a luxury product in less developing countries such as India and China. This is evidence as customers can obtain a cup of coffee for a portion of what the company charge in those countries.
This strategy needs modification to incorporate relatively low-income countries. The company has a generic competitive strategy that enables it to earn a competitive advantage over its rivals. To help it achieve this position the company focuses on lower-cost and differentiation strategies. Starbuck targets two markets and employs different competitive techniques. To a board cross section of buyers, the company utilizes overall cost provider and broad differentiation strategies (Scott, & Rouleau, 2011, p.
55). On a market niche, the company focused, low-cost and focused differentiation strategies are implemented. Starbuck is one among very few companies that have created awareness for specialty coffee category, while maintain the supremacy of the product. Despite efforts seem more connected to the community, Starbuck continue to struggle with backlash. Its presence and acquisition has destroyed local coffee houses (Selby, 2012, p. 157). ReferencesScott, K., & Rouleau, A. (2011). Starbuck. United States: Films Christal. Selby, J. (2012). Starbuck. Farrar & Rinehart, Inc.