Starbucks: Business Strategic Drivers, Essay Example

Company Background

Noted as one of the largest coffee companies operating around the world today, Starbucks surely is a recognizable coffee brand in the market. Not only creating a buzz in the beverage industry, Starbucks has also captured the attention of the people because of the social status determination it carries. It intends to make a name in the hope of making its product, the coffee, more of a personal value rather than just a drink itself. With its logo, color and its appeal to the market, this company is rated to be among the fastest growing organizations around the globe.

Mobile App

Keeping loyal clients is an important aspect of the Starbucks’ business strategy. Coffee, being the company’s main product, is often considered to be a cash-payment only option. However, to create a more convenient way of dealing with their clients, they are given the chance to pay for their coffee through their mobiles in a cashless manner(Youngme, et al, 2013). Relatively, such option even makes Starbucks product more desirable especially to individuals who would opt cashless transactions but do not want to carry their credit cards with them. This drive for convenience development dedicated to client-relations improvement is considered as one of Starbucks’ most effective response to competition in the market. While there are other coffee companies that serve good coffees as much as Starbucks does, the company stands as the pioneer into creating cashless transaction options with their customers through downloadable apps.

The Starbucks app does not only allow people to pay for cashless coffee. It also allows them to set their orders on particular store locations they desire even before they arrive at the shop. Once their orders have already been paid for through the Starbucks Mobile Wallet, their orders are going to be prepared immediately which will be ready for pickup. The app serves as a reservation tool especially for those who are on the go and do not have the time to fall in line during rush hours. There is more to this card; it gives wards to loyal customers of the company, allowing them to use their earned points to get specific freebies while also giving them a chance to enjoy good communication with the company as they post particular promotions that the customers might be interested in.

Strategic Drivers

Through the creation of a downloadable application from iTunes, Starbucks did not only create a more effective way of transacting with their regular clients, but they also managed how to get to their target market easily especially when they launch new products, promotions and other press releases that are expected to increase sales on the part of the organization. Notably, this approach to marketing has made Starbucks’ popularity even more invasive especially in terms of determining their position in the competition they are in with other coffee companies.

In the hope of getting the attention of most of the individuals who would rather transact and complete their options of purchasing their coffee trough online or mobile connections, Starbucks’ app makes a better reputation for the company especially in relation to responding to what the market needs (Michelli, 2006) in relation to modern technology. Coping up with what is in-the-current-trend of technology has made it easier for the organization to make an impact on the decisions and perceptions of the market as they pick the right brand of coffee to buy. Of course, with convenience in thought, people would opt to buy the product-brand that gives them the option to enjoy their purchases in a more convenient manner.

In consideration to this fact, it could be realized that Starbucks used technology to its most beneficial option especially in consideration with how it could boost the popularity and reputation of the organization among the buyers in the market. Besides excellent branding, Starbucks’ utilization of technology gives its operation a huge boost especially in relation to how it is able to influence the market to take the option of downloading their application and enjoy coffee at their most convenient state. People, specifically the ones who have been born to this current generation, would immediately respond to such approach of marketing especially that it suits their style of living. Through this, the company immediately expands their target market which is expected to relatively increase sales in the coming years. Overall, the Starbucks app improves the way the company has already created a mark for their business, their product and their reputation in the industry.

Recommendation

It is recommended that the said app be created both for iPhone users and android phone users all the same. The number of android users has already surpassed the users of iPhone especially outside the American and Europe. Accordingly, making the app available also for android phone users could increase the capacity of the company to affect more of its regular clients outside of the Europe and America. This will altogether bring the option of convenient transaction with Starbucks a worldwide phenomena rather than just a concentrated improvement within a concentrated area.

References

Stanley, A. (2002). Starbucks Coffee Company. (case study). Tuck School of Business at Dartmouth.

Youngme, M. & Quelch J. (2013). Starbucks: Delivering Customer Service. Boston, MA: Harvard Business School Pub.

Michelli, Joseph A. (2006). The Starbucks experience: 5 principles for turning ordinary into extraordinary. Harvard Business School Pub.