Starbuck-Statement of Opportunity
Starbucks is specialized in offering products, such as gifts, coffee, tea, logo merchandise, and drink ware. For better market penetration, the company can opt for an increase in the market share of the available products for sale. This can be handled by ensuring that the current loyal customers increase the number of products that they purchase. The company may decide to offer discounts for such clients with the aim of attracting them. Since the company has many competitors, it may also decide to attract other customers from its competitors through the use of a more aggressive means of advertisement. Alternatively, the company can encourage individuals who do not use their products to start using them.
Starbucks can expand its market beyond the Europe borders by venturing into new locations. For instance, the company has not expanded into countries, such as Finland and Scandinavia through joint collaboration or the creation of a warehouse at a strategic place where several countries can have access to the products.
There is a need for intensive growth for Starbucks Company. One of the sure ways of ensuring that there is positive progress is by improving the products’ technology. Starbucks can make this possible by introducing a mobile app for its customers. Since the world has become digital today, having customers to download a mobile app will attract new clients.
It is good for a company to be known for one product; however, this becomes risky when such a company meets stiff competition. For Starbucks, horizontal diversification would be the most appropriate strategy. There is a need for introduction of new technology and products. For instance, there should be a modification in the coffee for sale as well as the introduction of mobile application for the old customers.