Starbucks Case

Decent Essays
Starbucks Case Study

1. Starbucks serves what many would consider a basic commodity-- coffee. As a commodity, traditional management wisdom would dictate that vendor selection would be based upon price; the vendor with the lowest price typically earns the business. How did Howard Schwartz transform Starbucks from a shop that "specialized in selling whole arabica beans to a niche market of coffee purists" into an "upscale cultural phenomenon" (p. 2)? Be certain to identify Starbucks ' 'service vision or concept ' and 'service strategy ' under Schwartz ' leadership.

The concept of Starbucks goes far beyond being a coffeehouse or coffee brand. Howard Schwartz, who wanted to take the experience of an Italian—specifically,
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Starbucks control the supply chain so that they can make sure the coffee is the highest quality. And the starbucks locations are always in downtown area or high-population area which brings customers more convenience. The decoration style is trying to make customers feel as comfortable as they can. Although starbucks is not unique enough as other private coffee shop, starbucks is the highest coverage coffee shop with high quality coffee and comfortable areas. It is a coffee shop brand that people can easily find and walk in.
- intangible difference: The waiting time is limited in three minutes at any time period. Staffs are trained well with hard and soft skills which ensure the coffee taste and services. Also, the upgraded coffee machine keeps the accuracy of each coffee and reduces the waste.

4. What management challenges does the heterogeneity of the Starbucks service product present? What benefits does heterogeneity potentially present?

Starbucks provide hundreds of products and also with their customized drink; however, it is also a challenge for them. For customers who do not want to choose from bunch of choices, starbucks heterogeneity coffee choices just confuse them. Another problem is the different starbucks location or different baristas make different taste of coffee. If a customer always goes to one specific starbucks location, he/she may not satisfy with the coffee in
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