Starbucks Case

3653 Words15 Pages
March 4, 2013 [Starbucks ]

Starbucks Case Questions

In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective?

In the early 1980’s Howard Schultz, became captivated and saw possibilities in the fledgling specialty coffee market as he studied and observed that only a few Independent specialty coffee roasters existed and most of these businesses were small operations without large advertising budgets. Schultz recognized that many companies such as Peet’s and Starbucks had an enthusiastic base of regular customers who were
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His belief was that wherever there was a cluster of customers ordering his product it would make good business sense to establish an outlet somewhere around the cluster.

Another of Schultz critical drivers were the layout and design and fixtures. Schultz had invested time and money to ensure that each outlet was identical to each other as it forms a part of the experience which he wanted to create for his business. To achieve this Schultz had hired an architect as his businesses expanded to ensure that the design was achieved in all his stores. To ensure that this was achieved Schultz would be in attendance at all locations during the opening and the start up of each outlet. Schultz tried to standardize his business practices so as to achieve quality in all his outlets.
Training of his employees was a critical driver for Schultz business as he was of the opinion that they should be knowledgeable about the service product and the service delivery offered to customers. He further believed that without his employees being knowledgeable about the product and how to offer quality service to customers so that they will not return. Also, Schultz wanted to educate his customers about the origin of the product and get them knowledgeable about the product they purchase. Schultz competitors had not included this activity in their sales strategy, for example Peet’s. This he opined

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