BUSI 520-D06, Group 2 Liberty University Starbucks Blonde Roast Coffee May 11, 2012 Introduction Provide a description of your product/service and a brief history of the firm that produces your product/service. Starbucks Corporation is a leader in the coffee industry with coffeehouses around the world. Since their inception in 1971, their goal has consistently remained to “share great coffee with our friends and help make the world a little better” (Our Heritage, n.d.). Starbucks is widely known for their retail stores; however, the company has plans of becoming a brand known for their consumer-products as well (Jargon, 2012). Starbucks offers a variety of coffee and coffee products in their retail stores and in grocery stores worldwide.
Customer value proposition is leveraged around serving the coffee experience into everyday lives. Quality Coffee, great service and atmosphere combine for a completing value proposition. Working directly with growers to purchase green coffee beans, overseeing the custom-roasting process, and controlled distribution ensure a quality product. While extensive training confirms excellent customer service, clean and well-maintained worldwide stores that reflect the personalities of each community, thus building a high degree of customer loyalty. (Starbukcs Corporation, 2012) In 2010 Starbucks declared a dividend for the first time and key
Linh Vu 1) What factors accounted for the extraordinary success of Starbucks in the early 1990ies? What was so compelling about Starbucks’ value proposition? Describe Starbucks product. - The long time vision: Starbucks created a chain of coffeehouse that would become American’s “third place” besides home and work. A place where they could go to relax and enjoy others, or just be by themselves.
Starbucks provides a variety of coffees and es pres s os as well as fres h food items including pas tries , s andwiches , s alads , and other items . Additionally, it s ells branded bottled co ffees and ice cream. Starbucks als o owns s everal brands including Seattle’s Bes t Coffee and Tazo tea. Starbucks Corporation was given a weighting of 20% becaus e of its brand image and appeal to its target market. Starbucks offers a s imilar fres h ingredien t environment and values its employees highly.
Employees have heard a rumor that Starbucks might be opening a store in the area. Right now we have competitive advantage, because we are only café which is specialized in coffee products. The situation will change when Starbuck will open a new shop. As Baltzan & Phillips (2009) have stated in their book that, “competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage” (p. 22). The café have first mover advantage to be first in business but Starbucks are technologically advanced and have wholesale coffee business in the market.
Peter Seligmann, Co-founder, Chairman, and CEO of Conservation International stated that Starbucks has “raised the bar for the entire industry” (Starbucks Coffee Company, 2012, Goals & Progress: Ethical Sourcing, para. 4). A second example would be that 98% of coffee bean suppliers are small farms. Of these, 100% of the small farm children attend school; thus, improving their lives (Starbucks Coffee Company, 2012, Goals & Progress: Ethical Sourcing, para. 5).
From the beginning, Starbucks has an initial stake in global economic. The coffee beans that Starbucks uses to make the robust brands of coffee all begin in the rich soil of foreign countries. Global economic interdependence does relate to Starbucks and management is well aware of this importance. Starbucks global interdependence is an imperative necessity that will generate revenue for Starbucks. Revenues are globally impacted because of essential materials from specific countries.
The company’s culture solely depends on providing quality coffee and to introduce innovative designs and new product ideas. Illy has been rated high in the Italian restaurants as it is the first mover to introduce the espresso machines to brew coffee in these restaurants. Illy applies a positive approach of zero defect in its production department which reflects the motto of the company that its setup is entirely focused on obsession for quality. Weaknesses Illy has limited presence in developing economies which constitutes the majority of the sales worldwide. The company primarily focuses on developing economies where saturation of the market is at its peak and the company has failed to continuously innovate their products to sustain market growth.
1. How would you evaluate the collaboration between SBX and CI in the Chiapas? I evaluate the collaboration between Starbucks and CI as one of the successful outcomes of the collaboration between the two organizations. Based upon the success of the initial program, Starbucks elevated its commitment to develop even more project across the world to replicate the success of the Chiapas project. By working with Conservation International on projects in the Chiapas from Shade Grown Mexico to coffee purchasing guidelines, Starbucks continues to show they are a leadership company when it comes to biodiversity protection and sustainability issues.
Serving thousands of coffee shops and home consumers across the U.S., Coffee Bean Direct is among the fastest growing coffee companies on the web. Approach When Marketing Associate Floyd Wallace heard the buzz about Google Checkout, he was intrigued for several reasons. Checkout promised reduced credit card transaction fees, Google promotions, the Checkout icon on every Google AdWords™ ad, and easier transactions for customers. Since the beginning, AdWords has been a big component of Coffee Bean Direct’s advertising and marketing strategy; Checkout seemed like a natural complement. “We are always excited to offer convenient choices for our customers,” explains Wallace.