Read this Case Study and evaluate which Starbucks strategies are best. \"What St
ID: 468021 • Letter: R
Question
Read this Case Study and evaluate which Starbucks strategies are best.
"What Starbucks Strategies Are Best?
There is only so much revenue that coffee, lattes, and pastries can bring in, so Starbucks performed SWOT and QSPM analyses and decided to spend millions on three new strategies: (1) provide beer and wine, (2) provide expanded lunch and dinner menus, and (3) provide advanced mobile ordering. Several key factors that entered into this decision were (1) there have been long wait times for customers to get served at many of its locations, (2) company business had fallen off 30 percent after morning breakfast, and (3) rivals Panera Bread, Atlanta Bread, and Dunkin Donuts were expanding their menus and growing revenue 15 percent faster than Starbucks. Starbucks’ five-year strategic plan is to double its U.S. food revenue to more than $4 billion, with wine and beer alone adding $1 billion in 2015. Starbucks’ new food items include truffle macaroni and cheese, Parmesan crusted chicken skewers, bacon-wrapped dates with balsamic glaze, artichoke and goat cheese flatbread, and chocolate espresso, champagne, and raspberry truffles. Starbucks’ new wines include a variety of sparkling, red, white, and rose choices. Starbucks’ new mobile app and coffee truck and delivery trucks help stores anticipate demand, so customer orders are often available immediately.
Referring to a SWOT analysis, separately name a strength, weakness, opportunity, and threat for Starbucks. Which of the three strategies referenced would you recommend and what would be a potential downside of choosing this strategy? Explain.
Explanation / Answer
Strength: Customer experience, Brand recall and Brand equity
Weakness: Lack to adapt the local culture
Opportunity: Increase in the envioromental concerns
Threats: Aging population and modern cafes
Provide advance mobile ordering is something I would recommend because:
Advantages:
It can have more reach as compared to the restriction of the limited reach
Usually when the place is crowded and there is lack of place, providing orders to the customers place is more beneficial.
To keep the database of the customers
To meet with the competition by providing facility of ordering through app, which is simple
Starbucks can earn by providing ads on their app
Disadvantages:
Starbucks is famous for its experience which people will not have by ordering it online.
It will be difficult to deliver the hot beverages
People without app will find it difficult to order
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