GROWTH STRATEGY:

Starbucks Corporation (also known as Starbucks Coffee Company) grows its multinational operations
through a generic strategy that highlights the specialty of its products. A combination of intensive
growth strategies influences the approach that Starbucks uses for growth and expansion. The intensive
growth strategies must align with the generic strategy to maximize Starbucks’s competitive advantage
for firm performance and potential success. Alignment of its generic strategy and intensive growth
strategies reinforces Starbucks Coffee’s competitive advantage and business performance in an
increasingly competitive global market. Given the intensive growth opportunities in the global market,
Starbucks employs multiple strategies for effective business growth. In the simultaneous
implementation of its intensive growth strategies, the coffeehouse company focuses more on expanding
its international market presence, as well as in offering products of high quality and value.

There are two strategies that Starbucks use as their growth strategies. Its main intensive growth strategy
is market penetration. Starbucks already has presence in more than 78 countries and territories, and to
maximize revenues and growth in these current markets, the company applies market penetration by
opening more company-owned stores or licensed/franchised café locations. Starbucks uses market
development as its secondary strategy for intensive growth. This strategy supports business growth by
generating revenues in new markets or new market segments by offering the company’s current
product mix of food and beverages. Product development contributes to Starbucks Corporation’s
growth through new products or variants that add to business revenues. These strategies facilitate
business expansion despite the increasing saturation of many coffeehouse markets. Another suitable
approach is to use the product development intensive growth strategy to align Starbucks’s product mix
to the distinct cultural preferences of consumers in these regions.

Accordingly, the coffee chain giant focuses on the quality of its products and customers pay premium
prices for high quality. Starbucks also plans to open a whopping 22,000 locations to bring its massive
store count to 55,000 by 2030. This is to accelerate its new format expansion, like pickup and curbside,
projecting that it will expand drive-thru to nearly 45 percent of its U.S. portfolio by 2023, up almost 10
percent from fiscal 2020. It is so fulfilling because it was able to provide an experience that changed
how much of the world thought about coffee shops and how many of us drink coffee outside of our
homes. Successful expansion in these markets ensures the fulfillment of Starbucks’s corporate mission
statement and corporate vision statement, which adhere to making the company the leading player in
the global coffeehouse market and related markets for coffee products and consumer goods. Moreover,
the business diversification intensive growth strategy can help increase actual growth potential through
operations outside the coffeehouse industry.
https://www.retailwire.com/discussion/starbucks-sees-even-more-stores-in-its-future/

http://panmore.com/starbucks-coffee-generic-strategy-intensive-growth-strategies