Howard Schultz And Starbucks Coffee Company

767 WordsMar 30, 20164 Pages
Howard Schultz and Starbucks Coffee Company In the early 1980s, how did Howard Schultz view the possibilities for the specialty coffee market? Recognized the untapped market as revealed by statistics. Specialty coffee accounted for less than 10% of the industry’s sales in 1980 (Bouclier,p.39) The specialty coffee sector had expanded rapidly from 1970’s to the 1980 with annual sales rising from $45 million to $750 million (Bouclier, p.39) Schultz decided to use his talents to build a strong company and a large market for high quality coffee. Why did Schultz think he could successfully import the Italian coffee bar concept to the United States? Perception Opportunity Perception Schultz’s perspective about coffee completely changed when he visited Milan in 1983 He realized that coffee came with an experience; Italian coffee bars offered the customers a sense of community, comfort and an extended family Coffee in America was treated mostly as a produce, Starbuck sold first-rate beans but did not sell coffee by the cup He realized that they had overlooked the important association that coffee consumption had to conversations and community Opportunity Schultz knew that this was a huge opportunity for Starbucks to re-brand itself using the the Italian coffee bar experience They could serve high quality coffee by the cup in the form of espresso 's while providing a comfortable and appealing experience to the customers Schultz was convinced that this move will
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