Starbucks Case Study Essay

1733 Words Oct 20th, 2014 7 Pages
1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?
2. When Starbucks was rapidly expanding its store locations in 2006–2009 it made specific changes in order to facilitate that growth. What did Starbucks gain—and give up—as a result of each change?
3. When Schultz returned to Starbucks as CEO in 2008, how had the competitive context changed since his first tenure running the firm? What had caused or facilitated the changes?
4. Why did Schultz respond the way he did to the changes he found in 2008? What was he trying to achieve? Were his responses effective or ineffective?
5. Did
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The décor of the stores included earth tones and overstuffed chairs, wood floors and cozy fireplaces that created a home-like feel so that its patrons could linger and relax. La Marzocco machines were put up which added to the distinct taste of the coffee and the Barista that operated the machines stood as a unique attraction. The quasi-Italian lingo included in menu (drinks names and sizes) were very catchy. Starbucks positioned itself as a brand/company offering a “lifestyle product”. The locations were carefully selected where areas with large numbers of wealthy and highly professional workers (“Bobos”) were targeted.
2. When Starbucks was rapidly expanding its store locations in 2006–2009 it made specific changes in order to facilitate that growth. What did Starbucks gain—and give up—as a result of each change?
Starbucks made operational changes to facilitate its rapid expansion. First, it changed La Marzocco machines for Verismo models, which were automatic and produced espresso quicker. This reduced the costs of training baristas and reduced the time of the process, so customers were served more quickly. However, some customers argued that the new machines produced lower quality coffee and the customer-barista relationship was lost. Other operational change was coffee grinding. At the beginning, coffee was grounded throughout the day for best tasting. In order to reduce time, Starbucks started shipping pre-ground coffee to its stores. However coffee quality could

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