Why Starbucks launched its first overseas “Reserve Roastery,\" a flagship store
ID: 410240 • Letter: W
Question
Why Starbucks launched its first overseas “Reserve Roastery," a flagship store combining gourmet coffees and a bakery in Shanghai? (Please explain it by all learning from the class of strategic management).
And here below is what I learned so far. so use to complete the assignment.
Smiling Strategies by applying five analytical tools
. Smiling curve
.pxm strategic MATRIX
.B.C.G.T.P.L.C
.poter's five -force Industry Analysis
There no case study.the teacher just give us that question and she wants us to use Starbucks to answer that question
Explanation / Answer
Background: The decision of Starbucks to open up a reserve roastery at Shanghai was to serve as a halo to the rest of the company and help to solidify the brand name of Starbbucks in China. China being a key player in determining the global economy and Shanghai for this reason being one of the most visited cosmopolitan cities in China, Starbucks decided to go big in this city by opening up 600 stores in the city.The reserve roastery gives a glimpse of what happens behind the scenes of the company and it becomes a unique experience that will be taken away by the customer to spread it as word of mouth increasing the customer base and brand awareness amongst the people. The introduction of a bakery in the store is also a part of the same strategy, to enhance customer experience as well as to keep with the cultural norms of the community where people like to relax with their cup of coffee with a snack.
Starbucks is increasingly looking into expanding the food division within each store. For this reason Starbucks has grown the Princi artisan bakery, which is the theatre of baking. That means it sources exceptional ingredients specifically for each fresh food offering thus enhancing overall feel good experience.
Starbucks went all in, in its Tea division as well for the chinese market by increased R&D activities in this area and reimagining a modern tea experience for customers who are always seeking new and different taste exeriences while keeping the traditional chineese culture of tea tradition in mind.
Along with providing a great experience for the customer, Starbucks has also started side by side CSR activities that help local Chineese Coffee farmers to be able to sustain by buying their produce directly from them.
Terminologies:
A smiling Curve is a representation of the data that is obtained by adopting value addition steps across the different stages of product life cycle, in the form of a graph. In this graph the curve on the X axis representing the conception and the curve on the Y axis represnting marketing when joined will appear as a smile.
Note:By adopting a strategy of R and D and bby bringing out all the features that Starbucks did inits flagship store at Shanghai, Starbucks value added process became a 'smiling' strategy.
Similarly by understanding the different terminologies you can be able to answer the different strategies that were used at Starbucks ,that you are required to complete for the topic.
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