The company’s organizational and operational strategies and processes are essential for its growth, as they provide the firm’s overall direction. They are broad in scope, thus covering the entire company. Arguably, the primary desire for an organizational strategy is to attain the long-term objectives. Developing a company’s strategic plan involves all company levels. Top management makes the bigger corporation strategy, while lower and middle management implements plans and objectives to fulfill the entire strategy step by step. Although Starbucks has the right organizational strategies and operational processes, some changes would be essential to outfit it to increase success.
Use of a Business-Level Cooperative Strategy to Create a Competitive Advantage at Starbucks
Although Starbucks is doing relatively well, competition from its rivals, both locally and internationally, is one of the challenges it faces. While global store growth has been excellent for Starbucks in the last decade, it has cost the corporation a lot in footing substantial tax bills, complicated legal processes, and leasing stores. Similarly, the acquisition has been expensive for the corporation. As a result, the company should opt for a business-level cooperative strategy. Forming a strategic alliance, a partnership between companies whereby their capabilities and resources are combined, should be the primary strategy for Starbucks (Witcher, 2019). In comparison, this technique is relatively cheaper and efficient than acquisition and global store growth.
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Competition Response Strategy
Arguably, coffee shops have been on the rise in modern society. As a result, this has increased competition for other operational coffee houses, forcing them to change some of their strategies. Developing a competition response strategy is of extraordinary significance to Starbucks, and its coffee business. The strategy in question will help the corporation to counter the impacts of their competitor’s actions. However, Starbucks should base this strategy on the type of action to take, its reputation, and the competitor’s dependence on the market (Wang & Shaver, 2016). Such bases are crucial in determining the success of the competition response strategy.
Unquestionably, taking strategic actions requires dedication or the use of specific organizational resources. Also, it can be challenging to successfully implement strategic actions, hence posing some potential risks to the implementing firm. Therefore, the firm needs to ensure its response is tactical and strategic. Additionally, the corporation should evaluate the potential impacts on the competitor (Wang & Shaver, 2016). Such considerations are essential in enhancing the effectiveness of the competitive response strategy.
References
Wang, R. D., & Shaver, J. M. (2016). The multifaceted nature of competitive response: Repositioning and new product launch as joint response to competition. Strategy Science , 1 (3), 148-162. https://doi.org/10.1287/stsc.2016.0014
Witcher, B. J. (2019). Business-level strategy. Absolute Essentials of Strategic Management , 47-56. https://doi.org/10.4324/9780429430794-7
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