Two factors essentially determine competitive strategies. These include the competitive advantage and the target market. After this identification of these factors, the strategy is then classified into five generic competitive strategies.

Starbucks utilizes a broad differentiation strategy; this is a strategy that mostly focuses on the broader segment of the overall market. The drinkers of coffee define Starbucks. This organization has become famous because of the efforts its show in meeting the broader customer needs by preparing the orders no matter how detailed they may be. The organization produces quality products, with stringent rules showing how their coffee is to be ready.

Starbucks has secured a competitive advantage in the market because of its unique and diversifying commodities (Collett, 2013). The company accommodates the things that are highly valued by the buyers, and it can create demand at a profitable cost. To appropriately use a broad differentiation strategy, the company provides differentiated service and quality in the shop industry and the coffee sales while at the same time it diversifies its offering. Here, it includes some coffee product sales outside it stores via the partnership with Jim Beam, Tazo Tea, and PepsiCo among many more. Starbucks hooks the clients with the quality and service provided in their store; this makes customers buy other items labeled Starbucks such a brand liqueur and bottled coffee.

Starbucks target market is broad enough to enhance attractive profits and continued growth potential. One of the most influential strategies in Starbucks is time, efforts and financial effort found within its workers (Talpau, 2011). The workers in Starbucks are all part-time employees working at least 24 hours of health insurance benefit. This strategy was put in place to ensure that all the workers are passionate and happy about their work.  Under the fiery leadership of Howard Schultz, CEO Starbucks, the company has remained a leader and more profitable in this market niche.

References

Collett Miles, P. (2013). Competitive strategy: the link between service characteristics and customer satisfaction. International Journal of Quality and Service Sciences, 5(4), 395-        414.

Talpau, A., & Boscor, D. (2011). A customer-oriented marketing-A strategy that guarantees success:             Starbucks and McDonald’s. Bulletin of the Transilvania University of Brasov. Economic   Sciences. Series V, 4(1), 51.