I want to ask about a solution of issue for debate called (Starbucks Moves Far O
ID: 353780 • Letter: I
Question
I want to ask about a solution of issue for debate called (Starbucks Moves Far Outside the Coffeehouse) in Strategic Management: Creating Competitive Advantages (8th Edition) by Gregory Dess, Gerry Mcnamara, and Alan Eisner book ,
I want an answers for those three question :
1.what are starbucks' core competencies?do the new businesses allow Starbucks to leveragege those competencies?
2.do Starbucks' diversification efforts appear to be primarily about increasing growth or increasing shareholders value by sharing activities building Market power and or leverage core competencies?
3.where do you think Starbucks should draw boundaries and what business to compete in? should it keep the new products in the corporate family? should it continue to move into the grocery retailing in space?
Explanation / Answer
the core competiences of strabucks is as they are offering a premium product mix of high quality beverages and snacks.starbucks is famous as it provides high quality of coffee and different coffee beverages and its provides a great satisfaction to the customer with the clean and good services,well maintained store with lavishing interiors,it has a high loyalty to the customer.its has a high value to its customers and supplies by maintaining a good relatuonship and building it strong with internally and externally which has helped them to enter in different international market and the response it is getting is great and thus it has created a high and respectable brand in the world.if one succeed in levraging core competiences one can be able to grow its business successfully.Yes it is allowing starvbucks to leveragege those competencies as it is supplies a chain of strategy and coming up with great innovative ideas.They even have the philosophy "lets start with what we can build and see if we can sell".they have started with innovation and it is building more value to its brand.
their diversifiication efforts are primarly about increasing growth and their competencies.they are a successful brand but intially they had to face a problem with the coffee business.the diversification leverages competencies.
its should draw boundaries on sales of grocery.its should focus on coffees and not on other products as it as famous for coffee.it should provide different service to different people.for example:-as if people want coffee provide coffee and if anyone juice give them that will help them to gain customer loyalty & satisfaction..and it should continue to move into the grocery retailing in space.
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