Starbucks

2412 Words10 Pages
CASE STUDY: STARBUCKS COFFEE

BY: KATHLEEN LEE
GRC 411

CASE STUDY: STARBUCKS
Brief History:

The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate.
This name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high quality coffee and brewing products the company grew to be the largest roaster in
Washington with multiple locations until the early 80’s. In 1981, current CEO Howard Schultz, recognized a great opportunity and began working with the founder Jerry Baldwin. After a trip to Italy to find new products, Schultz realized an opportunity to bring
…show more content…
Morningstar analyst had this to say R.J. Hottovy.:
“I’m surprised it wasn’t ramped up in earlier years. Product innovations and international expansion not only make the business potentially more profitable, but defend them against competition.”
International partnerships increase challenges but also create new ideas in new markets that can then be translated back to US markets. (Allison)

Starbucks Lifecycle

Introduction

Growth

Maturity

Decline

Starbucks in a mature stage of its lifescycle. It was founded over 20 years ago and it has experienced rapid growth in the last 2 decades. However within the last few years its growth has slowed and has even had to close locations. They are now focusing efforts on previous endeavors and international expansion.

KATHLEEN LEE
3

CASE STUDY: STARBUCKS

Value Chain
Product
Development

Bean and ingredient Selection

Product
Distribution

Storefront

Take-home products The above is the value chain for Starbucks. The upstream portion of the value chain shows the product development from adding teas and international influences, to the research that took place to develop the VIA instant coffee line. They also search the globe for Fair Trade suppliers of high quality beans. These products are then distributed to corporate storefronts, franchise locations, airport terminals, grocery stores and more, and finally offer ground coffee

More about Starbucks

Get Access