As it expands Starbucks continue to confront multiple cultures, environments and countries. Therefore, such an expansive organization can initiate a lack of focus from core business strategy and that is exactly the problem Starbucks has been facing. It has been undergoing expansion at the cost of compromising its product and marketing strategy. Starbucks has been compromising its product innovation. Its product innovation, such as offering iTunes song downloads and stored-value cards were well received by its customers.
However, no such innovation has been made to its product line in recent years. It has long cherished its store atmosphere with nothing meddling the aroma of ground coffee but its newer stores has been meddling this aroma by offering other food products such as breakfast for customers. Furthermore, its marketing strategy has been established on a customer relationship by differentiating Starbucks as an ethical company that applies fair trade practices, environmental conservation, charity, promotes diversity in its organization. Though through this period of rapid expansion Starbucks has put its corporate image on stake because it has been criticized to be unethical in many aspects of its business. For a brand that establishes customer loyalty on its image and charges premium pricing through its perceived value, doing so can be a potential suicide.
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