Please ensure your work is a minimum of 2 pages, you are specific in your answer
ID: 366518 • Letter: P
Question
Please ensure your work is a minimum of 2 pages, you are specific in your answers and you cite at least two references. Please submit in Microsoft Word format.
1. Do you have a favorite item at Starbucks? If not, what items(s) could Starbucks offer to attract you as a customer? Please be specific.
2. What is the value that Starbucks creates for its customers? How does the company create this value?
3. How important have innovation, efficiency, quality, and customer responsiveness been to Starbuck’s competitive position?
4. What do you think is Starbucks biggest strength? What are some of the opportunities for Starbucks be to improve their business/attract new customers?
5. Do you think that Starbucks has any weaknesses? What might they be? What are some of the threats to Starbucks business?
Explanation / Answer
Answers:
1.Yes my favourite items in starbucks is expresso coffee.They offer variety of flavours in coffee and it tastes unique and differ from other coffee shops
2.Value creation for customers:
-They provide personal service to the customers by suggesting choices of drinks based on customer tastes
-They provide a comfortable and good experience for customers like they feel at home
-The customers are allowed to order customized drinks of their choice
-Their unique value of proposition have differentiated from their competitors
3.Starbucks have come up with innovative ideas to provide different kinds of coffee/tea.This had led them to get their position in the market from other competitors
The quality of service is also very good and they provide excellent service and even they remember the favourite drinks of regular customers
They also bond with customers by conducting loyalty programs to obtain customer satisfaction
Each customer is recognized and made feel very special so that they enjoy coming to starbucks and gain a pleasant experience over there.All these have led to maintain their competitive position
4.Their biggest strength is the ambience of the shop is really good with a premium appeal.They gain customer loyalty so average sales per day is also high
Opportunities to improve business:
They can have tieups with entertainment industries and offices
They can expand their international operating segments
They can come up with new product and enter new market segment
5.Weakness of starbucks:
-High pricing of products may result in less target audience.
-Their reach to all status of people is not that good.Only high and permium peolpe come to starbukcs.It doesnot have reach in middle class people
Threats:
-Huge competition from Cafe coffee day,Barista etc
-Local tea and coffee shops are getting popular and attracts customers
-food and restaurants are also entering into coffee business