Starbucks and their Substitutes. How the company stayed dominant Essay

Starbucks and their Substitutes. How the company stayed dominant against their competition before, during, and after the recession - Essay Example The period is characterized by the plunge of GDP by two triumphant quarters. Unlike its competitors, Starbucks, and their substitute have managed to stay dominant before, during and after the recession. The analysis of why Starbucks has been dominant is incredibly vital to every organization especially those companies that experience a tremendous decrease in trading activity during the recession. Starbucks can be considered as a sample test to every company that is planning to start trading in the coffee industry as well as the imminent companies on how to maintain their trading activities regardless of the economic period. During the recession, the company attempted to have a massive expansion program. There is a range of advantages that are related to the development of markets especially to a company that is already established. Some of these benefits include better turnover due to high trading, creation of employment among others An expansion and especially in an in a recession period can be beneficial to the company and at the same time it can limit. For instance, the company can acquire a significant market share before its competitors have any plan on their situation. Conversely, the company may become overexposed to various levels of risks which may reduce or constrain the company’s future programs (Higbee, Liaw, Ting, Tjho, & Ton, 2008). Fundamentally, Starbucks situation can be seen from two dimensions including a liberal and a conservative view. From a liberal point of view, Starbucks and its substitute have effectively managed to secure it going concern through the various risk control mechanism. In contrast, the Starbucks strategic plan can be viewed as a way of exposing itself to it competitors There are various alternatives actions that the company can take to ensure that they do not lose their competitive advantage despite the various drawbacks. These measures include maintaining quality standards,