Starbucks’s Stability Corporate Strategy

I chose stability over the other two corporate strategies: stability or 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 in 2012. The S&P 500 stands at 2,570 today. According to them, Starbucks isn’t growing and its stock prices are nearly the same as the past two years. McDonalds and Dunkin Donuts are strong competitors in the coffee industry. Forbes reports that many companies have attempted to replicate the Starbucks business model. Others tried to duplicate the company’s espresso drink menu — such as McDonald’s with their McCafe line. 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 reported that many companies have placed increasing importance on customer loyalty. 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 plan to keep these results going and will eventually develop strategies to increase sales via happy hours. The company plans to expand the company, but they try and maintain its current size. 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.

Corporate strategy is the highest level strategy that an organization has. 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. Starbucks’ strengths include its unique product and positive brand image, which helps to retain its loyal customers.


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    Owen Griffiths is 35 years old and a blogger and teacher. He has written about education for over 10 years and has a passion for helping others learn.