Starbucks: "Maintaining principles as we grow " case Study for MBA
The recommended strategy for Starbucks survival and success would be Focused low-cost strategy. In focused low-cost strategy, the companies serve market niches and targets smallest buyers in the industry which other competitors in the industry cant afford at such a low-cost. Through this strategy Starbucks will be able to retain its brand equity and will also be able to keep itself in line with the economic down turn. It will be able to offer the same experience at prices, its consumers can afford. Secondly, all low performing stores should be shut down and instead of expansion the strategy should be to revive business in current operational outlets.