Starbucks is a company that has established itself in the market but with decreased profits by nearly 50% the company had to revolutionize its strategy. The company incorporated digital and social enterprise in their business through introducing e-commerce, creating online stores and engaging their customers in social sites. Starbucks launched the mobile pay that allows customers to pay through their phones for their orders. The mobile pay introduces efficiency in processing and delivering orders to customers (Gallaugher & Ransbotham, 2010)
Starbucks has a strong financial performance in 2016 their profit margins grew by 11.2% a margin that enables them to diversify their operations. The company faces challenges in having limited product range that they can compete with in the industry. The company has an opportunity to continue its growth through expansion into other countries in the globe. The major threat that the company faces is increase in competition where their competitors offer cheaper products (Pride & Ferrel, 2016)
The company in 2011 bought the Evolution Fresh Company with an aim of targeting the health conscious customers. The new venture offered customers juices, salads, soups and grain-based bowls (Pride & Ferrel, 2016) .The venture did not succeed as anticipated by 2017 June the company will be closing their remaining stores.
The participation of Starbucks in social responsibility enhances their reputation in the public eye. Additionally, it does draw investors and customers who are attuned to the giving back to the society principles. The ripple effect is that it does contribute to the increase in the company’s profit margins (Gallaugher & Ransbotham, 2010).
References
Gallaugher, J., & Ransbotham, S. (2010). Socia media and customer dialog management. MIS Quartley Executive, 9(4).
Pride, W., & Ferrel, O. C. (2016). Marketing. Cengagebrain.
