Final answer:
Starbucks, at its inception, chose a A. high-cost differentiation strategy, providing a premium customer experience and quality product allowing it to justify its higher prices.
Step-by-step explanation:
The strategy choice that best describes Starbucks in its initial, start-up phase is A. High-cost differentiation.
Starbucks, since its early days, has focused on providing a high-quality product and a unique customer experience that justified a premium price.
Prioritizing factors such as a well-respected brand name and the creation of a 'third place' atmosphere between home and work, Starbucks did not compete primarily on price but on differentiation.
This strategy involved sourcing premium coffee beans and creating an upscale, inviting store environment.
The approach certainly required higher costs, both in terms of procurement of quality materials and in the infrastructure to support the customer experience.
However, this created a distinctive market presence that has paid off over the long term, contributing to the company's substantial brand equity.