The Starbucks Experience

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.

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.

Adopting a qualitative approach, this report provides an evaluation and critical analysis of the service process and service environment to evaluate the specialty coffee house chain, Starbucks Singapore. The report evaluates the purpose and value of the Starbucks servicescape design, a descriptive illustration of the service environment with a detailed and clear blue-printing of the service process

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

It’s a known fact that Starbucks is one of the leading brand in the market.When we analyse the market we find that Mcdonald 's and Dunkin are the competitors in the same product segment. So comparing Starbucks with these competitors will throw light on its grey areas, process and competitive edge in the market.

What I learned in Chapter Five is that willpower is recognized as one of the utmost important keystone habits for individuals to be successful. Willpower can be strengthened by mapping it out into a habit. Consequently, willpower is similar to a muscle, the more you work it the stronger it gets and it spills into other areas of your life. Once you get into that willpower frequency, your brain come to be trained at helping you focus on goals, as a result reach success.

Customers yearn for top notch coffee and pay willing high prices compared to others. Coffee drinkers, are not only paying for convenience, but know it is good coffee. Restaurants favor one of two business models: the standard retail business model or the franchise model. Starbucks is a standard model chain, which means it does not franchise out. The bulk of its profit come from locations the company owns. Sometimes this business model can hinder expanding. Starbucks beat the odds of this by going to high populated areas with lots of traffic. Meanwhile globalization is playing a role in how companies can

The main concept of the American Dream has been altered and changed due to self pleasing over-riding self reliance. Many people do not know what hard work is anymore. They do simple things and expect more of an outcome.

Starbucks Corporation has been around since 1971. What makes Starbucks unique from other coffee-bar shops is not only their wide selection of products, but the environment they provide to all customers. Starbucks sustains competitive advantage by constantly looking for new ideas, new products, as well as new experiences for guests. Starbucks also offers a selection of music, and unique designed coffee mugs. The company even hires designers to come up with artwork for commuter mugs. Starbucks’ forte is incorporating differentiated features such as their different flavored coffees that no other company offers. They

Starbucks utilizes a differentiation business model by offering an overall unique and high quality experience for the consumer. From the high-quality food and drink options, to the uniquely roasted coffee and supreme customer service, Starbucks aims to provide an experience unobtainable anywhere else. Starbucks also focuses heavily on rapid expansion by seeking out profitable geographical areas and overcrowding those areas with stores in order to exploit profits and slow down competitors. Starbucks’ compliments this with its horizontal acquisition strategy, extending their product line through acquisition of competitors. This provides Starbucks with a differentiation strategy focused on providing a diversified product mix

Starbucks is a strong competitor in the service sector and a leader in the gourmet coffee industry. With a continued growth rate in store openings and maintaining successful profitability of its operations, Starbucks has demonstrated its ability to sustain a reliable and steady growth. Starbucks’ ability to contend with the vulnerability to current financial threats such as economic recession, higher interest rates, and global competition, is constantly proven by its incomparable brand image, its continual product innovations, and its exceptional customer service. This

The problem identified in the report is Chen, the president of Levendary China, has completely changed the core design of the company to give local look and feel. Even the Levendary’s classic wooden framed upholstered chairs are replaced with an alternative of local made plastic chairs by Chen. The change in the taste preferences by the Chinese customers is another problem which made Chen to change the core values of Levendary according to the local demand. The Head-Quarters of Levendary also faced problem with Chen’s stubborn attitude and his reluctance for the change in operations in China. Foster’s leadership is another issue to be considered due to lack of international management experience. The shares of Levendary trading at discount compared to other restaurant stocks and Levendary China clearly states in its income statement: a loss of 143620$ in the year 2010. Inconsistent accounting is another drawback to be considered in the operations of Levendary café in China.

First, Starbucks has effectively applied the product differentiation strategy. To achieve it, the company has specialized in different product mixes, aligned its business locations to a specific ambiance that suits the context, and varied the customer experience, thus resulting in a higher customer service satisfaction. Further, Coskun, Basligil, and Baracli (2008) note that Starbucks prides in having their customers enjoy a premium service. Therefore, the company’s signature strategy has worked well thus far, as competitors find it difficult to imitate. Second, the enterprise has coordinated its acquisition and portfolio strategy, thus consolidating the market. As discussed in the background chapter, Starbucks has a portfolio network of eight brands under its stable. Third, Starbucks’ international expansion strategy has worked well, with a presence in 70 countries (Starbucks, 2017). These factors, coupled with its financial capability, offer Starbucks an edge over its

To understand the Starbucks phenomenon, I think it is crucial to understand what were the points of strengths that have allowed Starbucks to have a great success at the beginning of the company life, as well as those that are the current success factors. In addition, I believe that this reflection should be developed first and foremost in the United States where the project has been successful, and then in the rest of the world where customs, traditions, commercial models and stories completely different from American ones.