This assignment will focus on stability rather than growth. The course material explains that growth is not always the best strategy option for every organization.
Starbucks is committed to stability. Starbucks is a major player in the coffee market. They continue to innovate and make their products accessible to everyone. The company keeps the product’s quality high and maintains its market share. According to InvestorPlace, SBUX stock traded at $60 per share two years ago. It trades at $54 per share today. This is a stark contrast to the S&P 500’s trading of around 2,050 just two years ago. Today, the S&P500 stands at 2,570. Forbes reports that many companies have attempted to replicate the Starbucks business model. Some companies attempted to copy Starbucks’ espresso beverage menu. Others attempted to copy the company’s “third place” concept, like Caffe Bene and Costa Cafe in London. But Starbucks has a steady quality which makes it more loyal. TheStreet states that companies from many sectors have been placing greater emphasis on customer loyalty over the past decade. Starbucks ( SBUX-Get Report) has been a favorite company of mine for many years. They offer membership rewards. Customers can earn loyalty rewards for every purchase made at any starbucks location. Members receive free drinks. Customers who have been loyal for a specified time can also get green memberships that allow them to receive refills without any additional charges.
Frappuccino Happy Hour allows customers to enjoy certain drinks at reduced prices. Happy hours are proving to be a positive success for the company. They hope to continue these positive results and eventually will create strategies to grow their sales through happy hour. The company tries to keep the company small and manageable, and not grow. The course material states that “growth could lead to lower quality products and customer services.” Although the company is able to grow, they prefer to increase their sales and earn loyal customers over expanding.
The strategy of the corporate level is the highest level strategy that can be applied to an organization. Starbucks is committed to sustainability. Starbucks is a landmark in the industry, providing exceptional service that goes beyond its business. It also provides services that are beneficial to the community and society. The company’s strengths include its unique product offering and positive brand image which keeps its customers loyal.
