Starbucks: Recreating Uniqueness

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Table of Contents

Introduction
Macro-environment
Starbucks brand uniqueness
VRIO resources in Starbucks’ strategy
Conclusion
References

Introduction

Starbucks is one of the well-known coffee house chains. The company is represented in many countries of the world. The brand of Starbucks has gained the popularity among people of different ages and represents one of the notable examples in the history of marketing and management.

The aim of this essay is to describe the macro-environment of the firm and to analyze the uniqueness of Starbucks.

Macro-environment

The firm operates at the three levels of the environment: macro, micro, and the internal level. Each of them exposes the company to various risks as well as provides the opportunities for growth. The macro environment is the level, which determines the long-term perspectives of the company (The marketing environment n.d.).

The macro-environment consists of seven major elements including the demographics, economy, political factors, legislation, socio-cultural factors, ecological and geographical factors, and technology (Marketing assignment help n.d.). For example, the technology plays a crucial role in the long-term success of Apple.

The innovative activity is the important part of its business. The development and launch of iPhones and iPads have been accomplished due to the hard work of the R&D team of the company and its substantial financing (Apple n.d.). Besides, the economic situation determines the performance of the company, to the large extent. In the years of the economic downturn, the consumers tend to be less willing to pay the significant price for the new models of iPhone or for other Apple’s products.

Starbucks brand uniqueness

The innovative forward looking marketing strategy was the primary determinant of the Starbucks brand uniqueness (What makes Starbucks 2012). “Unlike other companies, Starbucks has stayed away from promoting itself through ads in a billboard, newspaper, ad space or a poster.

It has relied on the dictum “Real Simple is Real Effective”” (What makes Starbucks 2012, n.pag.). Starbucks’ marketing strategy was focused on the product quality, customer satisfaction, innovation, “word-of-month” advertising, viral marketing techniques, strategic partnerships, and social responsibility (What makes Starbucks 2012).

However, the company has faced serious problems recently. The management has decided to close a substantial number of the stores. The analysts claim that the overexpansion has led the company to the loss of its uniqueness (Malhotra 2008). The consumers claim that the Starbucks’ stores lack the warm atmosphere and seem to be too much sterile and uncomfortable (Malhorta 2008).

VRIO resources in Starbucks’ strategy

“VRIO analysis of Starbucks’ value chain indicates that the firm has core competencies in the areas of human resources management, marketing, and operating retail locations” (Gates et al. n.d., p.3).

In the context of VRIO analysis, the company gained the competitive advantages from the corporate culture, its brand reflecting people’s lifestyle and values, sales and retail locations, procurement, and the firm infrastructure (Gates et al. n.d.).

Conclusion

In order to sum up all above mentioned, it should be said that Starbucks has been a leading coffee house chain for decades. The macro-environment creates the threats and opportunities for the business. In order to survive, the company needs to have a well-defined strategy.

The success of Starbucks can be explained by the uniqueness of its brand and the innovative marketing strategy. However, the performance of the firm deteriorates from year to year. The specialists claim that Starbucks losses its uniqueness due to its overexpansion. VRIO resources contribute to the competitiveness of the firm.

References

Apple. CNNMoney. Web.

Gates, R., Hogan, M., McCarty, L., Ramachandran, A., & Reed, T. Starbucks Coffee: Strategy Analysis MGMT 526. Web.

Malhorta, H. B. (2008). Starbucks: victim of its own success? The Epoch Times. Web.

Marketing assignment help with the macro environment. Web.

The marketing environment. Web.

What makes Starbucks a stellar company. (2012). Examiner. Web.

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