Taking a Look at Starbucks Coffee

* Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time.

Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.

Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

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

Starbucks—This $21 billion Seattle-based company sells has over 9,000 outlets world-wide. Selling everything from coffee to CDs, Starbucks is in the business of the “coffee experience,” and they’re always looking to partner with those companies that will best complement their customers’ desires for a high quality coffee drinking

establishing relationships with well-known third parties that share their values and commitment to quality, Starbucks is able to reach customers where they work, shop, and travel,”

Starbucks distinctly stands out from other food or beverage chains in terms of the consistent quality of experience, that is symbolic of the company. A number of aspects have enabled the company to foster this consistency: a culture based on communication and centered around the customer, innovation in business practices, pioneering technology integration, an international appeal and steadfast commitment to its original ideals (for example, no franchising).

Starbucks is globally known for their high-quality products and exceptional customer service while providing a unique, “Starbucks experience” where customers

I have often experienced the wonderful inspiring coffee brand that is Starbucks. From my encounter with the company I found the strengths of the company to be that

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

Starbucks control the supply chain so that they can make sure the coffee is the highest quality. And the starbucks locations are always in downtown area or high-population area which brings customers more convenience. The decoration style is trying to make customers feel as comfortable as they can. Although starbucks is not unique enough as other private coffee shop, starbucks is the highest coverage coffee shop with high quality coffee and comfortable areas. It is a coffee shop brand that people can easily find and walk in.

The company has a focus on innovation through an emphasis of introducing new products and coffees such as “instant coffee” Via which generated a large sales growth of over 200 million. These new products consistently help Starbucks evolve as a

o The company is internationally recognized and has a global presence. Their reputation is one of fine products and services. Almost 9,000 cafes in almost 40 countries (SWOT) Widespread brand recognition, which in turn becomes brand preference, and ideally eventually brand loyalty Strong customer base o Respected employer Values its workforce Voted onto Fortune’s “Top 100 Companies to Work For” (2005) o Strong ethical values and mission statement o Disciplined innovator Understands the Adapt-or-Die theory of marketing Has the ability to roll out new products relatively quickly, which translates into a considerable competitive advantage o Clusters company units Expands business with the continuing growth of the coffee market, especially in

Starbucks primary objective is to establish the company as the most recognized and respected brand in the world (Starbucks Website). Starbucks is a gourmet coffee shop so they must increase their name brand so as to justify their gourmet status. In order to maintain its success Starbucks must implement an effective implementation plan. A company may have a great product, but if it fails to identify a specific market, or to use a proper marketing plan, it will not be able to successfully reach the consumers. Over the years Starbucks has been successfully able to take simple activity carried out at home to the pinnacle of commercial success. By expertly executing their marketing strategy Starbucks has taking coffee service to an art form.