Starbucks, founded in 1971, is in the mature stage of its life cycle. Although t

Question

Starbucks, founded in 1971, is in the mature stage of its life cycle. Although the company experienced slowing domestic growth, innovations such as Teavana, expansion into China, and an alliance with our old friend Tata Global Beverages in India have temporarily revitalized the company. With the existence of competitors such as MacDonald’s, Costa Express, and Peet’s Coffee, it appears that the company is sliding into a red ocean.

Posting Instructions:

You’ve been recruited by Howard Schultz to find a blue ocean for the company. What suggestions would you make? Please be sure to support your points with research.

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Starbucks, founded in 1971, is in the mature stage of its life cycle. Although the company experienced slowing domestic growth, innovations such as Teavana, expansion into China, and an alliance with our old friend Tata Global Beverages in India have temporarily revitalized the company. With the existence of competitors such as MacDonald’s, Costa Express, and Peet’s Coffee, it appears that the company is sliding into a red ocean.

Posting Instructions:

You’ve been recruited by Howard Schultz to find a blue ocean for the company. What suggestions would you make? Please be sure to support your points with research.

Explanation / Answer

Starbucks is in the business of selling the variety of caffeine beverages. with the competition from several different competitors the market is getting crowded and soon it will become saturated leaving very less margin for profit and growth.

To make Starbucks a blue ocean company it can improve the way it sells its coffee by implementing innovative practices so as to cater to the local customers. it should focus on selling experience than just selling a coffee. making a Starbucks experience a worthwhile one for any customer will increase his chance to return to the store. Hence the concept of experience selling can be adopted.

Modifying the stores to match the local culture can attract consumers to come to Starbucks. this will create a feeling of attachment with the store given that it is designed according to the local culture. hence creating an amazing experience for the potential customers.

Hence, Starbucks can differentiate itself so that it can identify itself as a blue ocean strategy.

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