Identify two to three ways Starbucks was able to innovate in order to stay competitive and relevant.
Week 6 Discussion 1
Identify two to three ways Starbucks was able to innovate in order to stay competitive and relevant.
Post your response in the discussion area. Limit your response to 150 words, demonstrate understanding of and cite the required readings or other credible sources that you apply, and look for opportunities to engage with and learn from others.
McDonald’s is one of the more successful American companies in the global market because it has succeeded in competing against local competition in most every market. Watch this video and share what you learned about McDonald’s global strategy and their global success. 150 word count
http://www.youtube.com/watch?v=v6coDUDCJ10
3.How do companies innovate? For instance, manufacturing businesses innovate through the use of new technologies, advances in production, increasing revenue, etc., whereas the service industry innovates through communication and fostering team success.
Experts have said that there is an innovation window for new technologies, product improvements, enhancements and so forth. So how do you know when this occurs? You never know. The companies that succeed in taking advantage of this innovation window, are always paranoid and make innovation a continuous process. I believe it is necessary to fully understand your business, from the mission to your staff and customers, to ensure that you innovate properly.
In an interview with Time Magazine in 2002, Steve Jobs stated that he knew this and when he returned to Apple, he challenged his company to break out of the mature computer industry where Apple had never garnered much more than 10 percent market share. He said, “I would rather compete with Sony than … Microsoft.”
Eight years later, after introducing the iPod, iPhone, iPad, and a game-changing retail channel, Jobs claimed victory and Apple Computer became Apple Inc. While introducing the iPod, Jobs said, “Apple is the largest mobile devices company in the world. Larger than the mobile devices businesses of Sony, Samsung, and Nokia.” 150n word count
In the globalization and competition, Starbucks like others joined the competitive market and restratigized their company goals, values, initiative, and marketing strategies. In focusing on their strength and known factor “coffee”, Starbucks ensure that It was top quality. The company’s CEO recognizes that coffee is not just coffee where it can be founded in any stores as mentioned in the video. It enhances the product to include quality control, tasting testings, and a creative way extracting the taste of coffee from the bean by introducing a new machine. The “new machine” was also another strategy of innovating and distinctive taste of Starbucks coffee.
Another of keeping up with completion was the atmosphere and the environment that it creates. As the CEO mentioned in the video, everyone comes to Starbucks due to the need for human contact and a friendly atmosphere. However in reality, most Starbucks that I’ve visited customers are very busy on their phones, tablets, computer, etc. The table and environment are built to promote and encourage a “working environment” They are a few sitting areas for conversations as well. But the removal of counter spaces and individual names on the cups when orders are ready, does give it a friendly and humanist touch.
Now that Starbucks is notable and has recognition with just it’s image, they’ve launch and expanded into other areas within it’s field such as coffee beans in supermarkets, coffee cups, etc. Again, very strategic and knowing that expansion and small changes is needed to stay above other competitors. Keeping the name and logo alive and into the community, not just in the coffee stores.
References:
http://www.mhhe.com/business/Jones5e/videos/Brewing_a_better_Starbucks.html
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Answer preview Identify two to three ways Starbucks was able to innovate in order to stay competitive and relevant.
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