For the following situation, choose one of the 6 defensive strategies and suggest it to Starbucks. Avoid the general definition of the chosen strategy that both of us know. Discuss why you have chosen this strategy (why you think it would be effective). Explain how Starbucks can use it. Be specific and explain the details of your strategy. 2-3 paragraphs are fine for this question.
‘Starbucks vs. Dunkin’ Donuts. Starbucks offers a more extensive menu and more product customization, which is accompanied by a comfortable and quiet environment with free wireless internet access. These factors form a more premium experience and command a higher price point. On the other hand, Dunkin’ Donuts has more competitive pricing, focusing on the middle class and take-outs. It intends to be the lowest cost provider in the market while maintaining quality above an acceptable minimum.
Now Dunkin’ wants to get more strength in providing a comfortable and social environment for premium-price paying customers. Dunkin’ wants to downsize part of its franchised, low service locations, and create more well-designed coffee houses for comfortable seating and social activities.
What defensive strategy do you suggest to Starbucks?
