Case Study : The Starbucks Inside Questrom

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

Out of all the colleges I got accepted to, CSUF’s reputational business program proved to be the most beneficial path for me to take. The recent development of the Steven G. Mihaylo College of Business and Economics building, coupled with outstanding professors offered, ensures that students are provided with countless resources to aid them in achieving their goals. Starting a new page of my life in CSUF, I made it a goal to become more involved with the university and make the most out of my time there. Over time, I’ve been able to maintain a high GPA, as well as venturing off to pursue other interests, such as participating in the ASI student government and joining

The company founded Starbucks has experienced rapid growth since its first store opened in Seattle in March 1971. The impressive expansion over recent years has left it penetrate within the market of the top 100 best global brands of 2012, according to Interbred, and also it has been considered by Fortune magazine as one of the 500 largest companies in the world. Starbucks is now the largest coffee retailer in the world.

Starbucks Corporation purchases and roasts high-quality coffees, along with beverages and fresh food items, throughout all company-operated stores. The consolidated financial statements reflect the financial position and operating results of Starbucks Corporation. Ratio Analysis was used to analyze the performance of Starbucks using the financial ratios of liquidity, solvency, and profitability. Calculations and amounts were provided in the excel spreadsheet labeled “Financial Ratios”. All data provided were conducted from the balance sheet and income statement accounts over the fiscal years 2015 and 2014. Starbucks Corporations ' fiscal years’ end on the Sunday closest to September 30 (sec.gov).

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

Starbucks set out to inspire a better world by sharing a high-quality coffee with their friends (Starbucks, 2018). An in 1971, Starbucks opened their first coffee shop in Settle, Washington (Starbucks, 2018). Now, CEO Howard Schultz first visited the Starbucks coffee shop back in 1981 (Starbucks, 2018). In 1987, Schultz with some local investors purchased Starbucks and created the coffee shop known today (Starbucks, 2018). The following study is a situational analysis assessment of the external environment of Starbucks (Ferrell & Hartline, 2014). The external factors include competition, economic growth, political trends, technology advancements, and sociocultural trends (Ferrell & Hartline, 2014). Meeting the consumer's needs and wants is the goal for every company selling a product and with Starbucks, the goal is no different (Ferrell & Hartline, 2014). However, most

Starbucks coffee company was founded in 1971 when it opened its first store in Seattle’s pike place market today. Starbucks is the leading roaster and retailer of specialty coffee in the world. The company has nearly 6000 stores in thirty-seven countries. Starbucks chairman and chief global strategist Howard Schultz ho has been instrumental in the company’s expansion hopes to have 10,000 stores in fifty countries by the end of 2007.

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

Starbuck’s strategy focused on three components; high-quality coffee, intimate service, and ambient atmosphere. Starbucks worked closely with growers in Africa, South and Central America, and Asia-Pacific regions to insure the quality of its product. Starbucks called all employees' "partners" and worked hard to train them with the skills necessary to best serve the customer. The atmosphere at Starbucks was crafted after the European-style espresso bar. The company goal was to create ambience through the Starbucks "experience" and by making the area comfortable, yet upscale.

#1) Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets:

Starbucks was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl in Seattle, Washington on March 30, 1971. To help build their shop, Seigl went to California to learn from a coffee legend Alfred Peet, his “approach to coffee beans became the cornerstone for Starbucks 's reputation: high-grade arabica beans, roasted to a dark extreme by a trained perfectionist roaster” (Business Insights)

In recent occurrence for Starbucks, the company business has gained exceptional growth. Howard Schultz who is the chairman and CEO of Starbucks stated that “Starbucks Q3 fiscal 2015 stands as among the strongest and most remarkable quarters in our over 23 years as a public company.” (Starbucks Corporation 2015, 1) Starbucks “net revenue $4.9 billion in Q3 FY15, which is an increase of 18% over Q3 FY14.” (Starbucks Corporation 2015, 1) Part of the increase revenue for the company was due to global expansion in the China/Asia Pacific area. Within a year time frame, Japan opened “1,592 new stores.” The impact sales from Japan help “increase the company income about 22% to $938.6 million in Q3 FY15.” (Starbucks Corporation 2015, 1) Safe to

Starbucks has also peaked consumer’s interests by offering a variety of ways to upgrade your coffee, espresso, latte, etc. According to Cathleen Caleda, an employee at the Moanalua Shopping Center 's Starbucks, “Every season, we (Starbucks) offer several unique seasonal drinks.” The expansion of these new products are not only increasing sales, but are unfortunately placing more time between when customers enter the store and actually leave with a drink in their hand. With this increasing time gap, it is more unlikely for that customer to, indeed, leave completely satisfied with their Starbucks experience.

The case happened back in the 90’s where a lot of coffee shop is being operated in the business industry; one of this is the Starbucks a very well-known coffee shop nowadays. The Starbucks coffee maintained its clients or customers due of the new technique in marketing mix and to evaluate the kind of coffee and tea they were offered by the customers. The management also offered a promotional campaign by the use of advertisement in different media such as on television, radio, and printed media to remember the name of Starbucks. And now the said store or coffee shop has been created his own name here in the Philippines. (Source: Sunday Inquirer

Executive Summary..................................................................................................................................3 Market Segmentation ...............................................................................................................................4 Methods of Segmentation................................................................................................................4 Lifestyle Segmentation in the Specialty Coffee Market ..............................................................5 Segments