Starbucks Analysis On The Coffee Chain And A Brand That Changed The Americans ' Coffee And Cafe Culture

As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.

Starbucks has reinvented itself numerous times over the past 40 years and continues to experience substantial growth and contractions. They started as a small company, with its first location in Seattle’s historic Pike Place Market in 1971, and today, “there are more than 21,000 stores in 66 countries.” They have grown from not only selling coffee, but also offer a wide selection of teas, specialty drinks, pastries and an assortment of sandwiches for breakfast, lunch or dinner. They have also diversified their product offerings to include a wider variety of coffee beans, drink ware, and equipment to make coffee or tea at home.

Starbucks sells a variety of products, with the majority of its products revolving around different drinks, specifically coffee. They sell plain black coffee, along with many variations of what people call coffee; from flavored lattes, and frozen frappuccinos, to herbal teas and smoothies. Many people visit Starbucks on a daily basis to get there caffeine fix to get them through their busy days.

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Another core strategy of Starbucks is the ability to create product differentiation. The brand is known for high quality and this creates customer loyalty. They purchase high quality handcrafted coffee, tea, other beverages, and food made fresh every day from superior ingredients. They are keeping up with their product differentiation by venturing into tea and juices. Along with gluten and high fructose corn syrup free products and offering organic or preservative free options. Starbucks sells beverage products and license their trademarks through other frequencies such as approved stores, grocery stores, and foodservice accounts.

Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks has lived up to that motto each and every year and with such great numbers and great feedback the company keeps on growing in the right direction. Starbucks is well known around the world for delivering fast, efficient coffee in all forms. From their frappachino’s, to their brew coffee and ice tea they are definitely the set example that other company’s in their area follow. They live by six principles that they practice each and every day they represent there coffee which has always been there passion to deliver

Whether one is a regular or ordering their very first latte, a connection is made with that person, even if it’s only for a few moments (Starbucks, 1). Starbucks stores are what give the customers a sense of belonging. It has become a place where one can meet your friends, and escape. Whether you live a slow or fast pace life, Starbucks accommodates that (Starbucks, 1). Our neighborhood is where everything described above comes together. It becomes where a customer is comfortable. Taking the same route to and from work or school to stop by their Starbucks neighborhood is something the company takes pride in. Building relationships is what Starbucks strives to do every day (Starbucks, 1). The immense growth of the company shows just how successful Starbucks has become. There are over 20 thousand stores worldwide and still growing. Starbucks has also very involved in community service. In 1977 the Starbucks Foundation was created. It inspires youth to be extraordinary leaders in their own community. The Starbucks Foundation also encourages employees to get involved (Starbucks, 1). Other community service projects include Surfers for Autism, food banks, and cleaning shelters

Starbucks mission is a visionary statement that outlines the company’s objectives as follows: “to inspire and nurture the human spirit – one

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks was originally a small waterfront coffee shop located in Seattle that opened in 1971 (starbucks.com- Our Heritage). It is extremely convenient and now has over 24,000 stores in the 70 countries it is located in, which is one of the reasons that it is so well known today (starbucks.com- Starbucks Coffee International). There is a large variety of coffees you could get, however, they do not focus solely on coffee. They also sell teas, smoothies, pastries, and more. Their mission is to “inspire and nurture the human spirit- one person, one cup and one neighborhood at a time,” (starbucks.com- Our Heritage). It is a place that people can work on computers, study, or hang out at, so it is constantly in business.

Starbucks Corporation has been around since 1971. What makes Starbucks unique from other coffee-bar shops is not only their wide selection of products, but the environment they provide to all customers. Starbucks sustains competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. Starbucks also offers a selection of music, and unique designed coffee mugs. The company even hires designers to come up with artwork for commuter mugs. Starbucks’ forte is incorporating differentiated features such as their different flavored coffees that no other company offers. They

The mission for its customers is to promise. Managers firmly believe that sellers should have a good relationship with their customers, and always put their customers in the first place. The mission for its stores is to have sense of home. Hopefully, stores can help customers get out of their busy world, and relax for a moment with friends. The mission for its neighborhood is to lead with responsibility. Having a good connection with the neighbors benefits the partners, the customers, and the community. The mission for its shareholders is meeting profitable. The success of a company is due to its shareholders. “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Our Starbucks Mission Statement). One person represents people; one cup represents Starbucks; one neighborhood represents friend. Starbucks brings people a feeling of connection.

Starbucks sells hot and cold drinks, coffee beans, salads, hot and cold sandwiches, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal

Starbucks adopted the Societal Marketing Concept with the goal of not only deliver great customer value but also produce benefits to the communities and environment. Starbucks offers mainly coffee beverages supplement by pastries, sandwiches and cakes. However,

“Our mission is to inspire and nurture the human spirit –one person, one cup and one neighbourhood at a time.” (Starbucks Coffee Company, 2015)