Starbuck

Starbucks Coffee Company, which is commonly known as Starbucks or Starbucks Corporation, is the dominant world-leading roaster as well as retailer of specialty coffee in the 21st century. Until now, it has over 20,000 stores in the world, which shows a huge number difference between Starbucks and the following competitor - Dunkin’ Donuts, which has just around 10,000 stores (Statista, 2014). The annual revenue of Starbucks skyrocketed in comparison with the last past decades in 2014, reaching around 16.45 billion profits U.S. dollars (Statista, 2014). Starbucks roasts its specialty Arabica coffee beans and retails a selection of beverage products, consisting of fresh brewed coffees, hot and cold espresso beverages, non-coffee blended beverages. In addition, it sells food items such as sandwich or muffin, along with beverage-related equipment. Starbucks main strategies for publicizing business depend on a combination with company-owned and licensed stores as well as joint venture to expand across the globe with its local partners. For the most part, Starbucks applies the same basic collection of products and customizes few additional products depending on customer’s preferences from different countries.

Starbucks Company was established in 1971 with their first store in Western Avenue from that same year to 1976. They started as retailers of ground coffee tea and spices with a single in Seattle’s historic Pike Place Market. Starbucks is named after the first mate in Herman Melville’s Moby Dick and their logo is inspired by the sea-featuring a twin-tailed siren from Greek mythology. Starbucks had always wanted to inspire the human spirit. They believe in serving the best coffee by growing the coffee under quality standards. Starbucks believes rendering good services to customers is very significant to the success of the company. From just a narrow storefront, Starbucks now has more than 20,000 stores in over 60 countries and

Starbucks’s has been able to surpass its rivals and continue being one of the premier roaster and retailers of specialty coffee in the world since its inception in 1985. Such an accomplishment has been sustainable due to a concrete company strategy. When Starbucks’s first debuted back in 1985 it was the first coffee shop to bring specialty coffees to the mass market in the United States. Along with only purchasing and roasting top quality coffee beans they designed their strategy in a way which gave the customer the ability to customize their drinks to meet each person’s individual preference. They also included free Wi-Fi in all of their stores, which in turn increased an already competitive advantage even more by not only offering customers

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

The story of Starbucks starts in 1971, a quiet little area in Seattle’s historic Pike Place Market, opens a coffee shop serving specialty coffee and pastries. In 1983, the concept of the Italian Coffee Bar was introduced by Howard Schultz, President of Starbucks (Starbucks.com, 2015) and changed this little coffee place into a new market. Since then, the Coffee industry has boomed in the United States and both coffee and coffee related items have grown by competitors like Coffee Bean and Dunkin’ Donuts. Starbucks is now in 66 countries and over 21,000 stores and growing. The menu has increased with not just

With time the small industry of coffee has modernized into a multibillion dollar industry that surrounds the world. With the growth of the industry there has been many world wide changes. Over the past 30 years coffee shops have jumped to the front of the public culture. New coffee shops have changes the face of American cities along with British, German, Colombian, Kenyan and Indonesia towns to name few. (Coffee a comprehensive guide to the bean, the beverage, and the industry) Around the world coffee has become part of the daily culture and coffee shops have grown to accommodate the massive demand that people ask for. Without the growth of the industry there would be a shortage of the product and many would have to go without their beloved beverage. In the United States alone there has been a massive increase in the number of coffee shops. In 1980 the number of coffee shops was a year 2,000 and by 2008 there was an astonishing 27,715. (Coffee a comprehensive guide to the bean, the beverage, and the industry) This was an increase of over ten times in the short time. 11,000 of those stores, almost half, were Starbucks one of the biggest coffee brands in the worlds. The growth of Starbucks is due to the work of Howard Schultz a worker for the company before they became as massive as they are today. Starbucks started very small in Seattle, Washington in the mid 1970’s. Howard bought out the owners and then went on to turn the small company into a massive corporation. (Coffee a

Starbucks opened in 1971, as a single store in Pike Place Market, Seattle. Starbucks only grew and grew since its first store, selling more than 30 different blends of exotic coffees along with a large plethora of other beverages and snacks (Company Profile). The coffee company grew into the world's largest coffee marketer of coffee, Starbucks has dedicated itself to honour its mission which is “to inspire and nurture the human spirit- one person, one cup and one neighbourhood at a time (Company Profile) . The company believes in reducing its impact on the planet and to promote a positive change through its actions. Starbucks provides their goals and processed on how their game plan of how they are planning on achieving their environmental goals. The company claim that they have been promoting the use of reusable cups as well as increasing the amount of recycling that is done in their stores (Starbucks Recycling) Starbucks has made a goal to cut their water consumption by 25 % by last year (Energy and Water) Moreover, Starbucks has installed Energy Management Systems in over 4,000 of their stores (Water and Energy). Starbucks acknowledges their responsibility in becoming more sustainable, claiming that they are only doing the best for the planet. Starbucks has also been LEEDS (Leadership in Environmental and Energy Design) certified

Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a leading roaster, vendor and trader of specialty coffee universally. It has about 182,000 employees across 19,767 company functioned & qualified stores in 62 nations. Their produce mix contains baked and handcrafted high quality/premium assessed coffees, tea, a variable fresh food stuffs and extra beverages. They also retail a variety of coffee and tea harvests and licenses their trademarks through other channels such as approved supplies, grocery and national food flair accounts. 1 Starbucks also markets its products mix with

Starbucks is world brand. Starbucks story began in 1971. Back then we were a roaster and retailer of whole bean and ground coffee, tea and spices with single store in Seattle’s Pike Place Market. Today, Starbucks are privileged to welcome millions of customers through our doors every day, in more than 16000 locations in over 50 countries. Starbucks products are coffee, handcrafted beverages, merchandise, fresh food, consumer products and brand portfolio. Starbucks believed in serving the best coffee possible. It’s Starbucks goal for all of Starbucks coffee to be grown under the highest standards of high quality, using ethical trading and responsible growing practices. Starbucks coffee buyers personally travel to coffee farms

Starbucks is diversifying into other related industries including bottled water, and even the music retailing industry. When a customer enters a Starbucks, they get a wide choice of many different types of products. They provide bagels, souvenirs, pastries, yogurt, wraps, fruit, Frappuccino, Espressos, Tazo teas, and many other items. Starbucks uses contemporary design of all promotional, web-related, and other material to keep it appealing to young generations. This contemporary look and feel is unified throughout all their material, so even the older target segments will feel younger when they drink your coffee.

Starbucks Corporation is a well-recognized franchise known for their high-quality coffee and sustainable culture, established in Seattle in 1971. The store was located in “Seattle’s historic Pike Place Market” (Starbucks, 2016) where they delivered the world’s premium fresh-roasted Arabic bean coffees. With Starbucks rich history, they opened New Zealand’s first store in 1998 along with other countries. Since the introduction, Starbucks has determined to be a unique brand and differentiation from the other fast food companies that operate in this particular industry. Instead of marked as a burger chain, Starbucks is distinguished as providers of rich traditional coffee with a strong connection with their consumers in the fast food industry. Besides coffee, Starbucks presents a variety of “tea, fine pastries…” (Starbucks, 2016), in accordance with customer preference. The Starbucks brand operates around humanity, for example, dedication to the “highest quality coffee in the world” (Starbucks, 2016). The main competition for Starbucks is Nestle, McDonalds, Dunkin’s Donuts and local coffeehouse/cafes.

This case study gives an overview about Starbucks International Operations. It will explain how Starbucks expanded outside US and the strategies they adopted to give tough competition to its international rivals.

Starbucks is a very famous company around the world. Many people like to drink a hot coffee in the morning before work, especially when it is raining outside or in cold weather. Every customer is very important for Starbucks. The company lives by its mission statement “Develop enthusiastically satisfied customers all of the time.” One can find stores of this company in many countries and figure out that these coffee shops are very popular and recognizable.

The consumption of coffee was not a new concept at this time, it’s use and drinking rituals had been around for centuries. However it was typically consumed in small independent coffee houses and the rituals associated with it were by no means established in America as it was in other parts of the world. What made Starbucks unique in America was its point of differentiation. At this time here wasn’t an established coffee consumer market in America it allowed Starbucks to present something to consumers that they didn’t yet know they needed. They also proved their relevance in the market by successfully capitalising on the characteristics of the time, creating a brand that echoed the values and behaviours of the modern America market. In comparison to other world markets America was the forerunner in the creation of a “consumption-based economy” (Ritzer, 2004). By the 1990s it was heavily saturated, based on wants rather than needs, the purchasing of luxury, convenience and the manufacturing of lifestyle and image, all of which were contributing factors in the rise of

The main aim of the corporation remained the same: to be the leading company at selling exclusive coffee and increase market share in the North America, which was prosperously achieved. As a customer-oriented entity Starbucks place their clients in the centre of the business activity, having satisfaction of customers’ needs as a priority (Boşcor & Tălpău, 2011). Howard Schultz explains, “We are not in the coffee business serving people, we are in the people’s business serving coffee” (Schultz & Yang, 1999). Starbucks does not just sell coffee; it sells the “Starbucks experience”. The store designers with the HR and Operations departments have created a place where people would come back again and again. As of November 4, 2015 there are 23,132 Starbucks stores operating all over the world (Loxcel Geomatics, 2015) and they are not planning on stopping the rapid expansion. However, due to the cultural differences people have diverse needs, which cannot be met by using one universal international standard for every store in every country. Therefore, in order to gain necessary competitiveness in local markets Starbucks Corporation has to adapt its marketing mix so it could correspond to the existent demand. What strategies Starbucks Corporation applies entering new markets (like in Japan and Australia instances) will be discussed in the following