BUS499 week5 discussion AND response

I’m working on a Business question and need guidance to help me study.

Week 5 Discussion Attachment

Please respond to the following:

  • Evaluate the business-level strategy of either Starbucks or Lockheed Martin to determine whether you believe the strategy is appropriate to offset forces in the industry. Provide specific examples to support your response.
  • Make recommendations for improving this strategy as well as describing any challenges you foresee in executing those recommendations. Provide specific examples to support your response.

Be sure to respond to at least one other student.


RE: Week 5 Discussion


Starbucks business-level strategy would be classified under differentiation strategy, customers go to Starbucks because they believe the product to be better and are willing to pay for the product. This is appropriate for Starbucks as they have proven year after year that they have a higher quality over other coffee houses, at least in their customer’s eyes. Starbucks sets apart from others by offering its seasonal flavors, the same as other companies but customers are willing to wait in line for Starbucks pumpkin spice because they believe it is better coming from the Starbucks cup. They are able to charge a premium because they know their customers are willing to pay that price. Each year Starbucks comes out with a “Holiday Cup” that customers wait in line for, even marking their calendars to make sure they are there on the appropriate day. To change their business-level strategy would not help Starbucks at all, by lowering cost they almost do away with the elitist sense that surrounds the company. If they were to only sell coffee they would turn away the customers who want the food as well.

As far as improving the strategy Starbucks uses, I would say offering a wider array of food products and taking into account that customers want more than prepackaged sandwiches. The issue I could see coming into this would be the cost. By having staff on hand to make fresh sandwiches or foods you would have to have an even higher premium cost on these particular products.