Starbucks Case Study Essay

1106 Words Jul 8th, 2014 5 Pages
August 27th, 2013
Case Analysis #1: Starbucks Corporation, April 2012

Starbucks is one of the world’s most recognized and loved brands. It is known in most parts of the world, leading it to become the largest supplier of coffee on the planet! Although it seems like Starbucks has always been on top of its game, that is certainly not the case. A brief history on the company provides some insight into its strengths and weaknesses over the company’s twenty-six year existence. Starbucks was started by Howard Schultz, a man who once visited a coffee shop and realized that the coffee he was drinking there was superior to any coffee he had experienced in the past. His subsequent visit to Milan inspired him to open his own coffee bar called
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Between July of 2011 and July of 2012, just under five hundred new Starbucks locations were opened around the world. At this same time period, revenues increased by fifteen percent, with the Asian markets providing the largest increase. Starbucks is by far the leading coffee shop chain in the United States, clocking in at over ten thousand stores as of 2011. Its closest competitor, Tim Hortons, has just over seven hundred locations within the United States. With this in mind, it is apparent that Starbucks has come back with a boom, and it will most likely continue to expand as the years progress.

Because this course is called Strategic Management, it is important to address the details about the strategies that Starbucks uses to be the leader in the coffeehouse industry. Howard Schultz knows that a business is nothing without loyal and satisfied customers. Hence, he quoted on page 447 “We’re not in the coffee business serving people, we are in the people business serving coffee.” He wanted to create a place that was not home or work, but something in between that could serve as a place to relax, grab a coffee, and maybe read a good book. This was termed “The Starbucks Experience”, and it is a humungous part of this company’s strategy. As previously mentioned, Starbucks clusters its coffeehouses in urban hubs so that there will always be a location close to where you are, and as is that was not convenient enough, Starbucks recently added

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