Starbucks

Globalization

The increase in globalization and International corporations affects how the business operates. Globalization affects Starbucks in two main ways – other organizations starting to invest in Starbucks ' traditional market and Starbucks finding a new market. Globalization has opened up new market and production sites, thus allowing the organization to start a company or sell their product in any part of the world (Voigt, 2017). These issues have resulted in increased competition to Starbucks products; on the other side, globalization has enabled Starbucks to grow by expanding new market. In the past few years, Starbucks has opened up new branches in other continents such as Europe and India. The opening up of the global market, to some extent, has facilitated Starbucks ' growth.

Technology

In the recent past, technology has become a key player in business operations despite the type of industry it operates. Starbucks has heavily used technology to improve the services it offers, marketing operations, and reaching to the other level in the global market. As the purpose and intent of taking coffee changes, from traditional use as the part of breakfast, to as a way of enjoyment, Starbucks have utilized technology to improve the quality of coffee meet people's needs. Starbucks has used technology to enhance the smell of coffee and to obtain various varieties. Thus, this has enabled it to achieve the right customers' experience.

Impacts of forces of competition on Starbucks operations

Starbucks Inc. operating in the competitive markets it is exposed to the five forces of competition. Since Starbucks is a service company, the main factors of competition that affect its operation are the bargaining power of the customers and the threat of substitute products. Starbucks has made all efforts to address the barging power of the customers and the threat of substitutes. Starbucks' main focus in the last few years has been the aim to improve clients' service. The company has improved the quality and varieties of coffee offered to enhance customers' experience aiming at maintaining customers' royalty (Sakal, 2018). Though, the addressing of threat of substitute product is hard to achieve, achieving clients' royalty can serve a significant role in ensuring the customer doesn't substitute coffee with other products.

Studying the Starbucks trends in addressing the issue of bargaining power and the threat of new substitutes, Starbucks is likely to focus more on improving clients' experience. The company will engage in research and development to come with the best approach to offer their service. The company is aimed at coming with strategies that improve company service delivery from not just selling coffee but selling the experience. Thus, the company in the future is likely to design its coffee outlet offer place when people enjoy their free time.

External threats and opportunity of Starbucks

The main threats that face Starbucks operations include a new entry in the market, increased cost of production, regulation, and tax laws. Operating in a free market, Starbucks expects to receive increasing competitors; the company may experience the high cost of production depending on the area of production, and new business and tax regulations are forms of external organization threats. Starbucks being a big company can utilize the industrial organization model to maintain its market share (Sholihah, 2016). By use of the economic model, Starbucks can outdo its new rivals by reducing production and transaction costs, advertisement, and forming of the strategic alliances. Also, the organization can apply other deliberate moves to minimize competition by suppressing emerging small companies, thus making it hard to penetrate in the market.

The foremost opportunity of the Starbucks Company is its strong roots in its home market. This opportunity allows the organization to explore the new global market, drawing its support from its original company. This opportunity forms a unique capability as the organization can use the resources and experience to set new firms in the global markets.

Starbucks greatest strengths and most significant weaknesses

Starbucks Inc. is going well in its market since it can make billions every year, and its profit seems to grow yearly. Here are some of its greatest strengths that have facilitated the growth of excellent performance. Quality, profitability, and ethicality are the leading strength of Starbucks ' growth. Starbucks has established itself as a premium coffee house, offering high-quality products despite its vast market (Sholihah, 2019). The quality and pricing are customers friendly, and thus it has maintained its immense market. On the other side, like any other company Starbucks has its weakness. On the other hand, like any other company Starbucks has its weakness. The main weaknesses of Starbucks include high price point and lack of over product.

Starbuck to fully benefit from these strengths and address its weaknesses, and it can employ efficiency and reinvestment strategy. The company should use the profit obtained to improve its service and expanding to a new market. The company can use its vast advantage to conduct research and development to come up with unique products.

Starbucks’ resources, capabilities, and core competencies

The main in important Starbucks include human resources, retail shops, and brand value. Starbucks, at its initial stage, was able to develop a culture of employing and retaining high experience experts (Morais, 2014). Starbucks has robust brand equity; this an essential strength of the organization as it helps the brand from other products; thus, keeping it's off from the competitors. Starbucks has managed to locate its retail shops in centrally located places; therefore, this serves as great company resources. The key Starbucks capability includes global experience; the organization can expand to any part of the globe. Worldwide expertise and presence help the organization to explore global markets, labor, and mean of production in different regions in the world. The company's key competencies include customer services; the company has managed to apply various means and strategies to ensure its clients are satisfied. Producing a high-quality product is another crucial competence in Starbucks.

References

Morais, U. P., Pena, J., Shacket, K., Sintilus, L., Ruiz, R., Rivera, Y., & Mujtaba, B. G. (2014). Managing diverse employees at Starbucks: Focusing on ethics and inclusion. International Journal of Learning and Development, 4(3), 35.

Sakal, D. V. (2018). COMPANY ANALYSIS OF STARBUCKS CORPORATION.

Shaburishvili, S. (2017). The peculiarities of inclusive business development under globalization. Globalization & Business.

Sholihah, P. I., Ali, M., Ahmed, K., & Prabandari, S. P. (2016). The Strategy of Starbucks and it's Effectiveness on its Operations in China, a SWOT Analysis. Asian Journal of Business and Management (ISSN: 2321–2802) Volume.

Voigt, K. I., Buliga, O., & Michl, K. (2017). Globalizing Coffee Culture: The Case of Starbucks. In Business Model Pioneers (pp. 41-53). Springer, Cham.