Starbucks : The Key Success Factors

3647 Words Jul 28th, 2015 15 Pages
d. Key Success Factors
Several key success factors exist for Starbucks, a leader in the coffee industry. They include marketing, expansion, innovation, recruitment and training, and brand/image/experience.
MARKETING
Starbucks’ initially positioned itself within the market by using high quality and large variety.
Their strength is in competing on quality and comfort rather than convenience. Starbucks craftily created a space for consumers to enjoy a cup of coffee away from home or work. Starbucks created the “Third
Place” – focusing on creating a unique and relaxing experience and atmosphere. The “Third Place” is one of the strongest concepts attached to the company (voteforus.com). With the insurgence of competition in the specialized coffee industry, Starbucks cemented its hold on the market by hosting free wireless internet for customers. This magnified the high-quality image consumers love about Starbucks.
EXPANSION
In order to continue growth and maximize profits, Starbucks will entertain expansion efforts in both the U.S. and international markets. China represents one of the fastest growing countries for
Starbucks. About half of the 1300 stores opened during fiscal year 13 will be opened in China. Starbucks plans for China to be the company’s second largest market by 2014. (Loeb, 2013)
INNOVATION
Starbucks smartly realizes that innovation will allow them to maintain the upper hand in the coffee industry. Last year, Starbucks introduced a new blend of coffee to attract…
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