Case Study Recommendations For Starbucks

Starbucks’s has been able to surpass its rivals and continue being one of the premier roaster and retailers of specialty coffee in the world since its inception in 1985. Such an accomplishment has been sustainable due to a concrete company strategy. When Starbucks’s first debuted back in 1985 it was the first coffee shop to bring specialty coffees to the mass market in the United States. Along with only purchasing and roasting top quality coffee beans they designed their strategy in a way which gave the customer the ability to customize their drinks to meet each person’s individual preference. They also included free Wi-Fi in all of their stores, which in turn increased an already competitive advantage even more by not only offering customers

Due to the expansion of social media, Lots of opportunities has been arose for Starbucks. Online networking focused on building customer associations with the company are more viable than a promoting it in a traditional way. In order to reduce their prices and compete with their competitors, Starbucks have a great opportunity to expand their range of suppliers. In this case, when they have lots of suppliers, they can actually negotiate with them and cut down their coffee beans price. So instead of charging the premium price, Starbucks can offer medium price and challenge their competitors. They can expand its branches in those countries where they have potential customers. With a billion customers ready to join those who want instant coffee and breakfast in China and India, Starbucks have a massive potential to expands in these countries, which represent profitable opportunities. Starbucks likewise has the chance to grow its item offerings to tackle the full range sustenance and drink retailers like McDonald’s and Burger King as the shopper

Starbucks has a number of different strengths on which it can draw in order to see its vision come to fruition. The company has a great brand, and this brand allows it to enter new markets and to add new products to its lineup. For example, the power of the Starbucks brand allowed the company to enter into a worldwide deal with Pepsi for bottled drinks in the supermarket. Also, when Starbucks enters new markets, its brand value usually precedes it. It can attract expats immediately and will pique the curiosity of the locals. Considering the value of the brand in high growth Asian markets like China, Starbucks has tremendous potential to bring its vision to reality.

* Start serving fresh fruits and berries as well as salads (maybe by the cup/ Fruit salads)

Starbucks roasts high-quality coffee beans to make espresso drinks and sells coffee products through multiple retail channels. The company has over 24,000 stores in 70 countries. Starbucks target market is affluent adults ages 18-40. This market segment makes up 49% of the company’s sales. In addition to targeting a specific market, the company employs a differentiation strategy. Along with the high-quality coffee, the company offers an experience within their stores which justifies higher products. Some aspects of this “coffee experience” include free Wi-Fi, friendly baristas, fast service, and comfortable seating. Also, the company relies on new product development as a strategic choice. This includes adding alcoholic beverages and food to its coffee shop. All of this is done with the idea of making the higher priced product worth it for the consumer.

Coffee has become a significant part of lifestyle of numerous people. Starbucks has opened its first coffee shop in in Seattle, Washington, USA in 1971 (“About Starbucks,” 2014). The Starbucks is very popular today and has more than 6,000 locations in over 30 countries. In addition to coffee and espresso drinks, people now enjoy Tazo tea and Frappuccino (“About Starbucks,” 2014). The main target of Starbucks is to be the consumer’s favorite coffee shop. The globalization of the businesses increases competition in the food and beverage industries. Starbucks is the most successful and competitive coffee chain on the market. The aggressive strategies of expansion pushed the competitors such as McDonalds or Dunkin Donuts

Starbucks was established in 1971 and it is an established, successful purveyor of Coffee. Starbucks is always known for its “rewarding coffeehouse” experience. In addition to coffee they offer selection of Tazo teas, pastries and other snack items like Panini to please the taste buds. For creating overall coffee house experience Starbucks stores have an appealing music and décor. Their focus in United States is to create a gathering place where people can chat, sit work much more just than a coffee place. Starbucks has a global presence over 17,000 stores all over the world. Starbucks entered India in 2012 as a joint 50:50 venture with Tata Group. This paper focuses on company’s strategy on entering the emerging market and

Starbucks continuous growth strategy has translated in over 24,000 retail stores where millions of customers are served with its exceptional products in 70 countries. Here, customers enjoy a range of products to choose from. These include handcrafted beverages, merchandise, and fresh food. Besides, its rapid growth has replicated in the expanded brand portfolio comprising Teavana, Evolution Fresh, La Boulange, Ethos Water, Seattle’s Best Coffee, Starbucks Coffee, and the Torrefazione Italia Coffee (Starbucks Corporation, 2016).

The objective of this case study is to analyze why Starbucks was not meeting expectations in terms of customer satisfaction thereby losing customer loyalty. Whether or not to invest millions of dollars ($ 40 million) in each store to enhance the labor. How will it impact the sales and profitability if invested? Product mix and marketing approach will also be recommended in this paper.

Starbucks can be categorized as one of the biggest and famous coffee company in the world. In 1971, Starbucks start its first business in Seattle. Nowadays, it owns a large amount of retailer stores which is more than 17,000 stores in 30 different countries (Scribd, 2016). The main product sold in Starbucks is coffee. Starbucks aims to provide their customers with high quality whole bean coffee and best coffee experience. Furthermore, it is more focus on two level of customers which are high end and upper middle class customers (Slideshare, 2016). The goal of Starbucks is to become the most recognized and well-known brand in the world ( Personal, 2010).

This is a report on the organization and business strategy of Starbucks, a company whose brand recognition is so high that there is hardly a need to add that it sells prepared coffee drinks and products Starbucks coffeehouses. Starbucks serves on the order of 70 million customers each week in over 20,000 stores in 64 countries (Kaplan, 2014). The first coffeehouse bearing the name Starbucks opened in 1971 at the Pike Place Market in Seattle; however, the company as it today effectively began in 1982, when one Howard Schultz was hired as director of retail operations and marketing (Starbucks Company Timeline, 2017). Schultz established the retail sale of ground coffee bearing the Starbucks brand to restaurants and espresso bars. In 1983 he travelled Milan, Italy, where he was impressed by the popularity and atmosphere of the local espresso houses (Starbucks Company Timeline, 2017). Upon his return the vision of Starbucks as a coffeehouse that customers would regard as a home away from home was established.

The story of Starbucks starts in 1971, a quiet little area in Seattle’s historic Pike Place Market, opens a coffee shop serving specialty coffee and pastries. In 1983, the concept of the Italian Coffee Bar was introduced by Howard Schultz, President of Starbucks (Starbucks.com, 2015) and changed this little coffee place into a new market. Since then, the Coffee industry has boomed in the United States and both coffee and coffee related items have grown by competitors like Coffee Bean and Dunkin’ Donuts. Starbucks is now in 66 countries and over 21,000 stores and growing. The menu has increased with not just

Starbucks is a Coffee Company that is successfully renowned throughout the corners of the world. It has successfully won a great amount of loyal customers regardless of its high priced, coffee. Many investors are also interested in this business as they see Starbucks as a moneymaking investment. Starbucks is popular for its high priced and high quality coffee with an ambient of comfortable sofas and delightful music. It has advertised and promoted itself as the “Third Place” that means a place where people can visit beside their homes and jobs (Starbucks: A Strategic Change and Management Perspective, 2014).

1- I think the most important management skills for Schultz to have are the conceptual skills. Since Schultz is the chairman of Starbucks, which means he is the top manager of the company, the conceptual skills are the most important for him to have. Mostly because conceptual skills help him see the organization as a whole. It helps the manager understand the relationship among the various subunits, and visualize how the organization fits into its broader environment. In fact the conceptual skills are defined as the ability to think and to conceptualize about abstract and complex situations. But as we can see in the case Schultz proved he had good conceptual skills when he decided to open his own espresso chain after

The purpose of this study is to identify the factors that led to Starbucks’ success and decline over the last ten years. Starbucks has to compete with other coffee retailers in the world, most of which have a diverse product