With new management come new ideas. After being gone for 8 years, Howard Schultz returned to Starbucks as the CEO vowing to increase their sales. Increasing sales can be a difficult task for any business but can be accomplished when paired with the right motivation and a setting a clear goal. Howard Schultz goal is to triple annual sales within the next 5 years.
I do believe that Howard Schultz can meet his goals of tripling sales. One of his strategies is cutting unneeded cost. One of the largest cost-cutting ideas was closing 676 United States Starbuck stores which contributed to a huge savings, $370 million in nine months. This was also done in part to complaints that Starbucks was growing too fast. Another strategy is finding new ideas/products to create a new genre of customers. One example of doing this is creating new drinks, such as he did with the Dulce de Leche Latte and Dulce de Leche Frappuccino. In order for him to gain a competitive advantage over competitive companies such as Dunkin Donuts and McDonalds, the company he has to plan marketing strategies. This is extremely important also due to the much higher cost of Starbucks. One of the excellent ideas was to have a “skinny” latte option for the increasingly health conscience communities.
Once the new marketing ideas are laid out and implemented, an analysis of Starbucks' current operations would need to be conducted for a clear view of the market share areas that exist and those that have the potential to be improved upon. More aggressive sales goals should be set to increase annual revenue.
Starbucks has always been a very popular establishment and even with its higher prices has had an edge over the competition. By offering a variety of products and concentrating on the quality of their products, not just the quantity, they will continue to have that competitive advantage. Doing this keeps the customer satisfied and that’s what it’s all about when it comes to a successful...