Starbucks blue ocean strategy

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Blue Ocean Strategy

Store network for instant coffee. At the beginning it was a new way of consumption: having a coffee in a special location, with music, food coming with…. The challenge wasto introduce to the customer the degustation of a coffee combining quality, reasonable prices, and proximity. In 2010, the company decided to revamped the strategy….

Starbucks concept… Starbucks researches indicated that a majority of adults under the age of 40 had never tried instant coffee. This type of non-customers did not have time to stand in line or did not enjoy the Starbucks“conversation” experience. This target consider that it was easy to drink a Starbucks brew in their office, home or on the road.

Starbucks, Blue Ocean Strategy

Costs : All the concept of Starbucks, in a minipacket.

Buyer Value: VIA instant coffee, easy to carry and easy to open mini packets.

New challenge….The third place

Reduce: Bitter taste of minipacket coffee Eliminate: Theidea that instant coffee cannot procure the same pleasure that brew product in Starbucks .

A new value curve

ReCreate: Old, boring category of instant coffee

Raise: The possibility to put aconcept in a valuable-innovating product.

Four actions framework

Blue Ocean Strategy Create unconsteted market place

Starbucks Strategy Already done, but before the innovating « third place», we can say that it was a red ocean. Competitors did not have the time to reacte. The company targeted non-customers. They did not spend so much money in research and development. They retake anold and well-known packaging putting inside the brew used in stores. New challenges for the company who wants to reach the grocery market distribution with another blue ocean strategy.

Make thecompetition irrelevant Create new demand Break the value cost trade off

Align a whole system’s of a firm activities in pursuit of differentiation and low cost

Blue Ocean Strategy… Strategy…...