Competitive Advantage: on Starbucks Product Development. Starbucks has a high market share and very strong brand loyalty from customers which allows it to get more profit than its competitors.
We can conclude that the key factors that make Starbucks successful in creating a strong financial performance year after year are: “Create Strategies”, “Develop Action Plan”, “Use Resources Efficiently” and “Have A Strong Financial Performance”. What are your thoughts? Why don’t you share them with us?
Competitive Advantage: on Starbucks Product Development
Starbucks has a high market share and very strong brand loyalty from customers which allows it to get more profit than its competitors. The main reason behind this is that customers trust Starbucks more than other coffee shops and are willing to pay more for their products and services.
This allows Starbucks to get more profit than other coffee shops in each market where they operate production facilities.
Starbucks has become one of the largest coffeehouse chains in the world with 21,000 stores worldwide which means it has been successful in expanding its business geographically around the world which means all locations where they operate production facilities are located near populated areas.
The main reason behind this is that Starbucks always plans its growth in countries based on customer demand and population density.
Financial Decision Making
Starbucks created strategies that are suitable for the financial environment of their business. This means the strategies are developing based on the financial situation of their business.
The main reason why Starbucks needs to create financial strategies based on the financial environment of their business is that if they develop strategies that are not suitable for the financial environment of their business, they may not be able to achieve the goals they want to achieve.
Starbucks has implemented all these strategies effectively through its action plan by making sure that they use its resources efficiently.
The main reason why Starbucks needs to use resources efficiently is that if it uses its resources inefficiently, it may not be able to achieve its goals or maintain a strong financial performance.
Starbucks has achieved a strong financial performance year after year since its beginning by following all the above steps. All of these allow Starbucks to get more profit than competitors who don’t apply these steps.
Starbucks has been successful in achieving a strong financial performance year after year since its beginning in 1971 due to strategic leadership within the organization.
Strategic leadership is a framework used by management thinkers to describe those managers who have a vision for where the firm should be and how it should get there, and who have the ability to lead others through change in order to transform that vision into reality.
Strategic leadership can only happen if leaders are given freedom and authority to make decisions according to their vision and idea and this has been implemented at Starbucks.
Since its beginning as we have seen above Starbucks always created strategies before making any decision or taking any action when it comes to financing management or budgets or expenditures or investments or any other financial-related issues.
The main reason why Starbucks needs to create strategies first is that it needs to calculate all financial related costs before making any decision or taking action so it can make appropriate decisions based on financial implications.
All of these allow Starbucks’ managers around the world have freedom and authority in making decisions at their locations which allows them to implement strategic leadership at all levels within their organization and allows them to achieve strong financial performance year after year as we have seen above.