Starbucks Corporation is a Seattle (USA) based largest coffeehouse company in the world representing one of the most recognizable logos and continually expanding with diversification approach. It operates in over 50 countries with 19,767 stores1 (as of Sep’2013) including the stores in USA and has more than 7,800 franchise units worldwide. It has a wide variety of product lines along with coffee which included but not limited to beverages, pastries, fresh food, whole coffee beans and merchandise. Many of its products are seasonal and specific to the culture or local responsiveness of the country they are doing business.
Starbucks global vision is to create distinctive Starbucks experience in the face of rapid expansion. It ensures that
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Starbucks had to deal with an initial lack of acceptance from France’s historic café culture, with older consumers frowning on a big United States coffee house chain with standardized disposable cups.
China: Starbucks articulated an entry strategy that would address the dominant Chinese markets and that was designed to be as inoffensive with respect to the Chinese culture as possible. Instead of taking the traditional approach with advertising and promotions which could have been seen by potential Chinese customers as attaching their culture of drinking tea, they located their stores in high traffic and highly visible areas. Starbucks very deliberately bridged the gap between tea and coffee drinking culture by introducing beverages with local tea based ingredients in their stores (in china). To be a successful business and become an empire, a company should have its competitive advantages. Starbucks is one of those successful businesses with plenty of competitive advantages to grow in the global market. Starbucks coffee quality begins with purchasing of high quality Arabica coffee beans and company ensures that only the highest quality beans are used. Roasting of coffee beans is an art form at Starbucks. Starbucks currently operates multiple roasting and distribution facilities. The policy at Starbucks towards employees is laid-back and encouraging. Employees are encouraged to
Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).
Starbucks is one of the largest known coffee distributors within the United States. Their mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Their objective is to be one of the most well known and respected brands around the world. With 21,366 stores around the world, operating in 65 countries, they are a major company that has influence on the economy in the United States and around the world (Starbucks 2015).
Background information: Starbucks is one of the biggest chains of cafés on the planet with 22,551 stores in 66 nations and domains, incorporating 12,739 in the United States, 1,868 in China, 1,395 in Canada, 1,117 in Japan and 830 in the United Kingdom. It was established 44 years ago – March 30, 1971 in Seattle, Washington, United States by three partners Jerry Baldwin, Zev Siegl, Gordon Bowker. The company entered global market after 25 years operations in domestic market in 1996 by opening store in Tokyo, Japan. Starbucks currently, serves hot, cold beverages and non-coffee items – sandwiches, deserts and CDs with their creation history all over the world. According to Wikipedia, in 2014, Company had more than 191,000 employees globally and theyt made revenue of $16,447 billion with 13 % net income.
With coffee consumption being transformed into a habit, with active market growth, with Starbucks being a North America market leader the distance between company and its competitors was reduced.
An important aspect of their differentiation strategy is through providing premium coffee responsibly sourced. They provide a variety of coffee blends and flavors that change seasonally (Starbucks Corporation, 2014) (Starbucks Coffee Company, 2015). They take great care in the selection, roasting, and distribution of their coffee beans (Cooke, 2010). They additionally position their products as superior by labeling product sizes as tall, grande, and venti instead of the standard small, medium, and
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
Starbucks is no doubt a phenomenon in the United States, but the brand wants to expand globally. Opening chains in various global locations such as Japan, Vienna, England; Starbucks wants to reach out to the coffee loving fans everywhere. Nevertheless opening chains globally is not that simple. There are many uncontrollable factors Starbucks need to focus on to make sure they are making profit as well has abiding by the country’s laws and regulations. Going global takes a lot of market research to make sure that the brand will be successful even with uncontrollable factors. Controllable factors can be tailored to fit the needs of each country. Starbucks has to find the happy medium so they don’t lose their identity overseas.
However, Starbucks also need to learn about the culture among the country. Starbucks is International product and well known. Some of the country most prefers tea compare than coffee. That means , that is one of the challenges for Starbucks to come out with variety of product.
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed
Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty
Starbucks Corporation is an American global coffee company and Italian-styled coffeehouse chain, based in Seattle, Washington. It is the world’s largest coffeehouse chain, and is considered one of the world’s best-liked and best-known consumer brands- with 19,972 stores in 60 countries. Business analysts agree that Starbucks is a widely respected company because of its commitment to social responsibility. Starbucks has earned this reputation through its actions in all phases of its business and live out this commitment through both its mission statement and values. The Starbucks website states that, “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Starbucks even has a
As "to inspire and nurture the human spirit one person, one cup, and one neighborhood at a time" is Starbucks mission statement. As one may notice, Starbucks' mission statement has nothing to do with coffee. Their mission goes beyond beverages. It addresses their daily objective, their core value, remarkable brand, reputation and most importantly exceptional customer experience worldwide. Starbucks continues to satisfy their vision "to establish Starbucks as the premier purveyor of the finest coffee in this world, while maintaining our uncompromising promises while we grow". Based on financial and operational status including customer's preference, Starbucks has prevailed and proved to be the top pick for coffee. Their unique brand, sophisticated and modern appearance as well as stellar customer service entices consumers to pay the extra cost for this luxury item at Starbucks over Starbucks competitors. Starbucks mission and vision statement mirror the organization's emphasis on leadership in the coffee industry. Furthermore, to maintain their status as the most recognized and respected brand in the world.
Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.
This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.
Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.