Starbucks Case

Decent Essays
Michael Smurfit Graduate School

Economics of Entrepreneurship
John Cashell

Starbucks Case Study

Name: Cian Bolger
Student Number: 14204986

Q1: In the Early 1980s, how did Howard Schultz view the possibilities for the emerging specialty coffee market?

In the early 1980s Howard Schultz became interested in the specialized coffee market. He observed that there were only a few small coffee shops around the united states that did not have marketing budgets to expand or that they did not want to expand and were happy with only being a few shops. Howard Schultz noticed that of the coffee shops that were their i.e. Peats coffee house and Starbucks that its customers tended to be loyal and regular and also they would have
…show more content…
By their employees being happy the atmosphere was something the customers wanted to be a part of and tell their friends about.
The second critical driver was their distribution channel, as they helped them to get the brand awareness into different parts of America so people would be talking about their coffee. Creating a new era of coffee drinkers, which drove the social coffee shop that makes Starbucks today. By Schultz using rapid expansion to get the brand name out there and having people talking about his coffee the business began to boom people became more aware of the brand Starbuck and from friends and family’s reviews felt confident in going to Starbucks to get there coffee and try the experience for themselves.
Another critical driver was Schultz plan to have a particular retail experience built on premium quality coffee, responsive service, and inviting ambience. By ensuring that every store had this culture and values it meant that customers would feel as thought they were sitting in their local Starbucks no matter what city they were in across the stores at it grew.
Schultz him self was a critical driver to the business he was clear about his mission to build a company that brought the Italian coffee bar culture to the USA and
Get Access