Stage of product life cycle starbucks coffee products

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Stage of Product Life CycleStarbucks coffee products are in the maturity stage of product life cycle. At this stage, themanagement’s aim is to maintain the sales and revenues and continue with cost minimization. The cost is being minimized through the adoption of reusable cups that customers return for a specific payback. Customers have come to understand the products that are offered by Starbucks even more (Simon, 2009). This can be seen by customers ordering for different combinations of coffee ingredients because they understand them well. Therefore, it can be concluded that there isa better understanding of the products by customers. This helps the management to enhance customer satisfaction because the customers get what they want.At this stage of the product life cycle, there is more complete knowledge. Rival companies keep monitoring each other’s strategies, therefore, at this stage of a product, the moves of other companies are well known. This is not favorable for Starbucks because it increases competition by rival firms (Simon, 2009).Starbucks sales are at their peak. The company is having its best sales volume for all its products. Also, the company continues to engage in cost minimization and increasing the market share through diversification; the company is offering other products other than coffee, among
MARKETING ANALYSIS PROJECT7them fast foods. These are some of the observable market characteristics that imply that the products offered by Starbucks are in their maturity stage.Financial ResourcesStarbucks is the best retailer in the coffee business. This practically makes the company to have a greater financial capability than almost all of its competitors. The company has huge financial resources which enable it to explore new opportunities in the market as well as new investments. The extensive expansion activities of the coffee maker are also attributed to its big financial muscle. All these benefits from the company’s financial capability are not available to the small companies which have less capital (Kanungo, & Conger, 1993).The financial capability of the company makes it possible to engage in various alternativestrategies for growth and expansion as well as new market strategies. The company can be said to possess the necessary financial resources to engage in any new market strategy in a market that it has the largest share.Evaluation of StrategiesStarbucks has enjoyed success for decades. The levels of growth have been very high owing to the company’s reputation which is built on delivering quality products, stakeholder concern and a well-balanced approach to how it does business. However, the company has experienced some challenges. For example, a lot of criticism came in due to the absence of fair trade coffee and hormone-added milk. The CEO’s alleged financial links to Israel was also a problem to the operation of the company. The global recession that started in 2008 also impacted negatively on the company. The recession saw the company reduce its global expansion plans.

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