Starbucks : The Success Of Starbucks

(3a): What trade-offs has Starbucks made? What different activity choices has it made from its rivals?

1. What factors accounted for Starbucks’ extraordinary success in the early 1990’s? What was so compelling about the Starbucks’ value proposition? What brand image did Starbucks develop during this period? Is the value proposition still valid in 2002?

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.

When Howard Schultz launched Starbucks, its main targets were the competitors and the customers. Schultz’s brand aimed at gaining dominance in the coffee industry in addition creating a Italian coffee shop feel in the United States (Buchanan & Simmons, 2009). The strategy of Starbucks was based on new products, listening to customers wants and ensure future expansion (Buchanan & Simmons, 2009). In creating convenience for customers, Starbucks created stores almost on top of eachother. They hinged on the idea that, they did not want to lose out on a sale if a line was too long. This action, of placing stores in heavy populated areas, basing need on projected growth of an area caused some decline in sales during economic trouble with the economy. The 2007 recession, failure of subprime mortgages, increased competition from McDonald 's McCafe brand, and Dunkin Doughnuts all led to a decline in sales for Starbucks in the fourth quarter of 2007 (Buchanan & Simmons, 2009). To attempt to regain market share and recover after the

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

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.

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

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

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.

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.

Starbucks is an American coffee company which is widely known as the representative of coffee and other beverage distributors globally. Alongside many other coffee companies all around the world, Starbucks has been able to distinguish itself from others by application of many customer friendly factors such as quality, taste and as well as good customer experience. These factors have successfully been able to raise it recognition in many parts of the world as well as popularizing darkly roasted coffee.

Starbucks is a global coffee company headquartered in Seattle, Washington. The company has been able to draw the attention of many customers, young and old, despite its overpriced coffee. The cafe is known for not only its quality of coffee and assortment of drink options but also the ambiance, including comfortable couches and soothing music. Last year, Starbucks generated revenues of $10.7 billion. That is a profit of about $1,760 per day for an average Starbucks coffee shop. In this paper, Porter’s five competitive forces (Threat of new entrants, Bargaining power of buyers, Threat of substitute products or services, Bargaining power of suppliers, and Rivalry among existing competitors) will be examined through the lens of Starbucks.

Starbucks is a very famous company around the world. Many people like to drink a hot coffee in the morning before work, especially when it is raining outside or in cold weather. Every customer is very important for Starbucks. The company lives by its mission statement “Develop enthusiastically satisfied customers all of the time.” One can find stores of this company in many countries and figure out that these coffee shops are very popular and recognizable.