Competitive PositionCompetitive position is the foundation of strategy. It is also a plan to increase positive economic profits for businesses. Three questions must be considered when companies seek a competitive position:1. WHICH customer should be satisfied? This is the value proposition of companies: quality versus economy.2. WHO are the customers to satisfy? These are the target markets of the companies.3. HOW will these customers be satisfied? These are the basic skills related to efficiency and development. Companies can achieve the result through combinations of resources. There are three generic strategies: cost control, differentiation and market segmentation. Cost leadership involves establishing a cost structure that allows goods and services to be offered at lower prices than competitors. Differentiation involves creating a product that is distinct from competing products in a way that is important to customers. Market segmentation is the way in which customers can be grouped based on significant differences in needs or preferences; it is often based on geography, customer type, demographics and product usage. For Starbucks' current generic strategy, differentiation seems to fit it. Starbucks always focuses on operational changes that improve product quality. She buys a coffee farm to control the supply and develop new coffee beans. Starbucks strives to increase product value on as many dimensions as possible. Its products appeal to demanding customers and require innovation in product development. The company's diversified product: Starbucks Ice Cream which creates joint ventures with Dreyer's and bottled Frappucino drinks with PepsiCo, etc. The business model used by Starbucks is standard retail...... middle of paper ..... .yes should have a business card allowing the customer to see their name. Employees should remind their customers to leave reviews before leaving. Customers can rate employees based on their performance. Every week, store managers must evaluate their employees based on the list left by customers. Highly rated employees should receive a bonus; poorly rated employees will be punished or fired. Although the quality of Starbucks coffee is excellent, the price is too expensive. How many people can actually determine and know the quality of coffee after tasting different brands of coffee? And how many people care and want to drink high-quality coffee? Are there customers who are more price sensitive or customers who are more quality sensitive? Cost leadership will rarely be a bad strategy when market needs are huge and competition is high in the industry..