Starbucks : The Success Of Starbucks

With time the small industry of coffee has modernized into a multibillion dollar industry that surrounds the world. With the growth of the industry there has been many world wide changes. Over the past 30 years coffee shops have jumped to the front of the public culture. New coffee shops have changes the face of American cities along with British, German, Colombian, Kenyan and Indonesia towns to name few. (Coffee a comprehensive guide to the bean, the beverage, and the industry) Around the world coffee has become part of the daily culture and coffee shops have grown to accommodate the massive demand that people ask for. Without the growth of the industry there would be a shortage of the product and many would have to go without their beloved beverage. In the United States alone there has been a massive increase in the number of coffee shops. In 1980 the number of coffee shops was a year 2,000 and by 2008 there was an astonishing 27,715. (Coffee a comprehensive guide to the bean, the beverage, and the industry) This was an increase of over ten times in the short time. 11,000 of those stores, almost half, were Starbucks one of the biggest coffee brands in the worlds. The growth of Starbucks is due to the work of Howard Schultz a worker for the company before they became as massive as they are today. Starbucks started very small in Seattle, Washington in the mid 1970’s. Howard bought out the owners and then went on to turn the small company into a massive corporation. (Coffee a

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Since Starbucks entered the coffee retail business, the company has made many trade-off business decisions. The first major trade-off was made when Howard Schultz wanted to acquire present day Starbucks from three entrepreneurs Baldwin, Siegel and Bowker. Therefore, Schultz prior to the acquisition made the trade-off to open his own coffee bar in 1986 instead of staying at Starbucks as the manager of retail sales and marketing. A bold feat, Schultz was able to replicate success and was offered to buy Starbucks for $4 million. At the time of the acquisition, many investors, including the former Starbucks owners, would not expect that the American consumer would pay a premium for coffee products. Schultz, after calculating the opportunity cost, was convinced that Starbucks would become a large coffee chain not only in the United States but internationally too. Reflecting this approach, Schultz’s trade-off worked. Starbucks, according to our book has revenue exceeding $13 billion and nearly 200,000 employees. The company has also expanded to 40 countries with 17,000 stores (Hill et al., 2015).

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

Starbucks was originally a small waterfront coffee shop located in Seattle that opened in 1971 (starbucks.com- Our Heritage). It is extremely convenient and now has over 24,000 stores in the 70 countries it is located in, which is one of the reasons that it is so well known today (starbucks.com- Starbucks Coffee International). There is a large variety of coffees you could get, however, they do not focus solely on coffee. They also sell teas, smoothies, pastries, and more. Their mission is to “inspire and nurture the human spirit- one person, one cup and one neighborhood at a time,” (starbucks.com- Our Heritage). It is a place that people can work on computers, study, or hang out at, so it is constantly in business.

The extraordinary success Starbucks experienced during the early 1990s resulted from Howard Schultz’s passion and vision to create a coffee culture in the United States similar to the coffee culture he experienced while traveling to Italy. Schultz’s vision of the Starbucks brand evolved around providing a quality product while delivering exceptional customer service in an inviting atmosphere. Starbucks’ success can be attributable to the following factors:

This assignment is based on the Starbucks case study; Trouble Brews at Starbucks written by Lauranne Buchanan and Carolyn Simmons (2009). The aim of this paper will be to discuss the the changing consumer experience, competitive landscape and external circumstances affecting marketing opportunities for Starbucks, while determining how Howard Schultz can provide Starbuck’s customers a greater long-term value.

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

As is quoted in the book “Starbucks seems to have a handle on how to gain and maintain employee loyalty.” I also like the way Starbucks treats its customers, you feel there as you are in a friendly environment. Schultz believes that he “has created a third place between home and work where people can go to get their own personal time out or relax with friends.“ (Peter & Olson, pg. 32) I think that what Schultz believes is very true and we can see this by the numbers of how much this store has expanded and how much popularity it has all over the world. The only thing that I don’t like about Starbucks is the price of coffee; compared with other stores here in Greece it has higher prices. So, the information I received for Starbucks had a very strong influence on my affect for the coffee shops and especially for Starbucks.

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from

The success of Starbucks in the early days of the company’s existence can be attributed to the goals, which Howard Schultz was able to achieve. His goal was to create a place, which people could gather as a “third place.” This place was to be in line with consumer schedules as the place of gathering and community. Home, Work, Starbucks was his idea. Everything he did was to be in line with this mantra. In addition to the atmosphere, which sets the brand apart, they produce a quality product. The brand started as a coffee bean distributer and it is this distinction, which allows

Question 1:When Howard Schultz launched Starbucks, who was the target market and how was Starbucks positioned to appeal to this target market?

1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

1.1 Brief overview of the proposal: This report is focus on finding out the opinions of underground students in XJTLU to the proposal for the Starbucks in Wen Xing Plaza (see figure 1). The original site is located in the west of Wen Xing Plaza nearing A01 and A02 students dormitory area, hence that is convert for students’ daily life. The first floor of original site is FamilyMart and the second floor is ChunJian haircut salon. For surroundings, higher-education zone has numerous graduate students and underground students, hence a place to relax and communicate with friends are needed. As for changes, firstly, extensions made of rectangular red bricks were reprinted to green and white aim to reflect Starbucks style. The second part of the proposal was to convert ceramic floor into wooden floor. In addition, one of the highlights of the interior was tear original haircut equipment down and add modern furniture to create an austere style image.

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.