Discussion 5

Discussion 5

Please respond to the following:

Evaluate the business-level strategy of either Starbucks or Lockheed Martin to determine whether you believe the strategy is appropriate to offset forces in the industry. Provide specific examples to support your response.

Make recommendations for improving this strategy as well as describing any challenges you foresee in executing those recommendations. Provide specific examples to support your response.

Starbucks Business Strategy

Starbucks uses differential business-level strategy in its operation, which gives the business a competitive advantage over others. Starbucks stores effectively offer a conducive environment where customers can spend time in a relaxed and comfortable manner (Chuang, 2019). The customers can even do their work there due to the presence of Wi-Fi. Through product differentiation, Starbucks sells high-quality coffee at premium prices. Starbucks has also integrated technology into its business processes. Technology has enabled the store to develop new products, marketing, and monitoring customer satisfaction. For example, the launching of mobile order and pay feature allows customers to make their orders without queuing. Starbucks also launched a voice ordering app that sends customers notification when their orders are ready (Taecharungroj, 2016). These are some of the factors that give Starbucks a competitive advantage.

To improve their strategy, Starbucks should consider renewing its brand. This can be of help since it faces stiff competition from other players such as McDonald’s. Changing the brand name will improve its image to customers that it provides superior coffee than the rest (Chuang, 2019). This will also lead to the attraction of new customers since rebranding boosts the reputation of the business. Additionally, Starbucks should also consider maintaining its product development and innovation. This will attract more customers since they will have diverse selections of food. Also, Starbucks should deploy cost efficiency strategies to cut on its operational cost. For example, using the internet to consolidate administrative activities and service provision will reduce human cost and increase efficiency (Taecharungroj, 2016). But these strategies may hurt Starbuck’s operation. Rebranding may bring confusion leading to loss of customers. The process of rebranding is also costly since they will have to carry out marketing and advertisement campaigns. Replacing people with technology is also expensive, and also customers may lose that customer service touch when buying from them.


Chuang, H. (2019). Starbucks in the world. HOLISTICA – Journal of Business and Public Administration, 10(3), 99-110. https://doi.org/10.2478/hjbpa-2019-0031

Taecharungroj, V. (2016). Starbucks’ marketing communications strategy on Twitter. Journal of Marketing Communications, 23(6), 552-571. https://doi.org/10.1080/13527266.2016.1138139

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