Starbucks: Delivering Customer Service 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.
BUSINESS AND LEADERSHIP SUPPLEMENTAL CASE : STARBUCKS 1- What proof is there that Starbucks has achieved competitive advantage in the industry? 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
Introduction 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
Question 1:When Howard Schultz launched Starbucks, who was the target market and how was Starbucks positioned to appeal to this target market?
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.
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? The extraordinary success Starbucks experienced during the early 1990s
Factors Contributing to Success 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
d. Key Success Factors Several key success factors exist for Starbucks, a leader in the coffee industry. They include
(3a): What trade-offs has Starbucks made? What different activity choices has it made from its rivals?
Assets acquired such as Starbucks-branded locations were decorated with 3. When Schultz returned to Starbucks as CEO in 2008, how had the competitive context changed since his first tenure running the firm? What had caused or facilitated the changes?
The success of Starbucks Starbucks was born in 1971 as a small coffee shop. With the management of Howard Schultz, Starbucks turned into a business legend and built a kingdom of coffee. It was dominate specialty-coffee brand in North America. By mid-2002, the company was serving 20 million unique consumers
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.
Case 1-1 Starbucks- Going Global Fast 1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
Report on students’ opinions of a proposal to convert a Family Mart to Starbucks 1.Introduction 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.
Case Assignment Analysis Format MRKT 5000 Online Course Darion Wright Starbucks Faces Global Opportunities and Barriers Case Summary: 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.