Starbucks : The Success Of Starbucks

1080 WordsFeb 11, 20155 Pages
What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? The factors for the extraordinary success of Starbucks is all due to the vision of Howard Schultz. Schultz wanted to change the coffee drinking experience by establishing benefits to create value in the coffee drinking experience. One of his vision was to recreate the coffee culture in Italy where people can come to relax and socialize. Schultz’s idea changed the American people’s perspective and experience of drinking coffee in an inviting environment. Starbuck’s main strategy was to be known as a company owned shop which allowed Starbucks to have a full control of the coffee quality. They work with their suppliers to control the supply chain and enforce their coffee standards to keep the quality high. This strategy resulted in establishing their high brand image for Starbucks. Employees of Starbucks were trained to make the customer service pleasant for customers and that created a welcoming experience which made the customers feel special. Schultz believed that happy employees would result in higher customer satisfaction so Starbucks employees are very well paid along with stock options and healthcare benefits. Employee turnover rates are low due to Schultz’s strategy. What was so compelling about the Starbucks value proposition is that customer service and customer

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