Business Level Strategy for Starbuck Company - myassignmenthelp

Question: Discuss about theBusiness Level Strategy for Starbuck Company. Answer: Introduction The majority of stores of Starbuck in Australia were closed due to the strategy of transformation undertaken by the company. This was made to bring revival in the performance of the company. The main focus of Starbucks entry in the Australian market is to meet the demand of the customers for premium coffee. The company started its business in Australia first and expanded its stores in other localities. The company owned stores were opened all across the country(Brook, 2016). The company faced issues due to lack of the customisation of product, process and for having no appropriate promotional strategy. The company could not assess the customers culture of Australia. The assignment focuses on the development of the new strategic plan for the company for the customers of Australia. Current Strategies of Starbuck for Australian market The current strategies of the company are to win all the segments of the market in Australia. The target of the company is very specific. The percentage of the coffee drinkers those who prefer to drink at home is 72%. Starbuck Company has grabbed only 72% of the sector. Out of the 72% of this category of coffee drinkers, 67% add creamer. The company may reach 7.3% of the coffee industry if the company only targets this particular segment(digitalsparkmarketing.com, 2017). The market study states that customers between the age group of 35-54 constitute 42% of the coffee market. For this segment of customers, coffee is the important consumption on the regular and daily basis. The customers demand the product and also prefer to pay high for the quality products. Thus it is important for the company to focus on this segment(Nielsen, 2012). The next important target group of the company is the students between the age group of 18 to 24. The research has also found that the consumption of coffee by the students has been grown to 10%. This segment has no intact brand loyalty(Brook, 2016). The company can increase market share by targeting this segment. The focus of the company is to win the market and become the market leader. Major issues faced Starbuck The case study 17 focuses on the major issues faced by Starbuck in order to remain successful in the market of Australia. The company has faced following major issues related to the survival of the company. These issues are: Can the company avoid issues due to economic recession in the future? How far has Starbuck been able to manage to avoid the previous mistakes conducted earlier that have brought a huge loss in Australia? Does the company face issues due to its global expansion plan and consumer packages good? Does it face problem due to tea counteract? Can Starbuck manage to compete with its competitors like McDonalds, Dunkin Donuts etc? How far the multiple stakeholders policy of Starbuck will help the company to avoid dilution from the succession of future leadership? Challenges to resolve by the company The above questions discussed in the case study shows that there are major issues faced by Starbuck in order to remain successful in the market of Australia. The research found the following points that are required to be taken care by the company. These important requirements are: The customers are inclined to the low price products instead of Starbucks products. The rising cost of labour the cost in the operation contribute to the degradation of the profits for the company. The company needs to compromise with the product quality in order to face challenges and to compete with the potential customers. The low price products are required to be supplied in order to target the customers of a particular segment. The company has also environmental issues. It requires resolving the issues in order to enjoy the trust of the customers. The people of Australia are loyal to their local brand and they do not prefer global brand The premium price charged by Starbucks is not accepted by the customers. Starbucks strategy available for Australian market The focus of Starbucks Corporation is to the customers of high class who prefer finest quality coffee. The natural ingredients are accepted and appreciated by this segment of the customers. The premium quality of coffee has attracted all segments of customers such as students, middle-aged customers etc. The companys focus on the target group with quality ingredients, quality service and taste create a brand image among the customers. The company has created brand loyal customers(Forte, 2011). The company has its own marketing strategies. The quality product of the company is promoted with the help of social media and print media. The company also offers quality products and services to the customers of Target Corporation loyal customers in its stores. Strategy suitable for the organisation The company has opened stores with a nautical theme. It follows the tradition of seafaring of the coffee traders. The company focuses on the significant loyal customer base. The focus of each caf is to concentrate on the customers of the limited areas. The company has another growth strategy that focuses on preferences of the customers. The company establishes shopping centres in the locations which are tourist hubs. The destinations are created in order to attract the customers to the stores of the company, relax there and to spend their time with their friends(Peppers Rogers, 2008). The customers can also spend some time quietly. The store of the company in Sydneys northern beaches shows the companys new strategy to open stores in prime tourists location(Gellis, 2001). The company has developed a policy of establishing more stores in Australia. This is meant to establish Starbuck as the successful coffee chain in the country. Recommendation for Starbuck for the marketing plan for Australia The company will plan to establish itself in the market of Australia with a successful action plan. The company will have the following goals for the future. Goals To increase the sale by 20%. Increasing the Gross profit by 20% To establish more stores in the prime locations of the country and in the tourist's hubs. Tobecome the market leader of the business in Australia Introduction the new promotional methods This has been found that the people of Australia are fond of using the products and services of their own country. The demand for the international products is not accepted in the context of coffee stores or coffee business. Thus Starbuck needs to make promotional strategies to attract the different segments of the customers. The word of mouths will be the right way to promote its business. The company will offer discounts to the students and young customers. This will help the company to gain the support of the customers(Brass, 2012). New Target market The study has found that there are different segments of the market for Starbuck in Australia. Each segment has its own perceptions. The coffee shops in the institutional areas will help the company to attract students. It can easily offer them quality products and services. The coffee stores near offices and administrative buildings will help the officials to get the facility. They can come and relax(Coulter Coulter, 2002). Strategy for getting competitive advantages This has been found that people of Australia are fond of the companies they are leading the local market. The local companies are offering coffee at a low price(Lynch, 2015). Customers are not interested in paying premium fees. Thus in order to compete with the local companies and other international companies, Starbuck requires offering discount and quality products and services. Innovation Starbuck knows that its re-entry in the Australian market needs something special attention. Thus it has to establish coffee stores in the prime locations. The tourists' place will be the most advantageous place. The tourists will get the quality coffee and also can stay for some period of time. Enhancing budget The company requires focusing on giving better facilities in comparison to its competitors. The coffee stores should be a very good place to spend some time(panmore.com, 2017). The visitors should stay for some time. Thus the company will increase its budget so that the ambience of the coffee shops will be good. Cost leadership approach Starbuck knows that in Australia it has failed earlier. In order to sustain in the Australian market, it has to employ some new marketing plan. Instead of charging the premium fee the company should low the price of the products. This will encourage the customers to avail the products and services of the company(research-methodology.net, 2017). Focus on the trained employees There is always a need of employing good employees in the organisation. This will help the company to manage the customers well. The trained employees will help the customers to avail the services and this will help the company to grow its business. Capacity of Starbuck to support the strategy The growth of the company shows with its revenue growth. The strategic synergy has been found all across the globe. The company with its diverse portfolio can deliver excellent results. The company has focused more on technology innovation(Gentile, 2012). The company has also focused on the reinvigorated organisation systems that are aligned with the growth strategy of the company. 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