STARBUCKS What were the keys for success for Starbucks in building the brand? Answer: There were some factors that are related with the success for Starbucks in building the brand. They are: 1. Offer consumers what they love. 2.
Starbucks gave US the “Café life” which didn’t existed before. Starbucks has changed our tastes, our lifestyles and penetrated in us by becoming part of the popular culture. Starbucks covers a broad base of customers from urban professionals to clerical assistances; Starbucks has found a way to appeal everyone despite of its high prices. Starbucks broad “strategy” is to grow into a global empire and any new change is done with great care and planning. Growth strategies are made to exploit customer connection.
Starbucks 1. The factors that made Starbucks so successful in North America: • The location selected for the Starbucks cafe’s was strategically implemented for ready access to consumers and also right in the strategic location where densely populated areas. • Starbucks cafes started in many crowed unified areas such as grocery stores, airports, united airline flights, barnes and noble bookstores where costumer can relax and spend a piece of pleasant time. • Starbucks’ success attainable and reliable on the environment and the method how they positioned Starbucks cafes; the Starbucks cafes is a comfortable center to have a good time. • Compare to international market, North American consume coffee out of home averagely higher than most of the countries.
It will present important information about the history and nature of the company. The project will also provide the reader with Starbucks’ business model and strategy that is essential for attracting more consumers, investors, and generate revenue. In addition, it will include information about the company’s environment; how the external factors impact Starbucks’ revenue, individuality, and competitors. Part of the data on how well the company is performing is to analyze its financial reports and perform the five – force model, SWOT, and corporate strategy analysis. All of this information provides potential investors with information about Starbucks’ performance.
The Starbucks Coffee Company we know of today rose from the passion and love that CEO Howard Schultz has for coffee itself. After a trip to Milan, and acknowledging the love with which the coffee maker in a small shop worked, he realized that brewing coffee was a craft. He said, “The blend of craftsmanship and human connection, combined with the warm aroma and energizing flavors of fresh coffee, struck an emotional chord.” (Schultz Chapter 2) He wanted to create this same atmosphere with the coffee shops he was in charge of back home, but his bosses didn’t agree with him. Upon his return he left the four small Starbucks stores, and opened up his own small coffee shop Il Giornale. After almost a year and half, Jerry Baldwin and Gordon Bowker, his former employers, offered to sell to him their Starbucks stores.
: Competitors : Competitors (Alterra Coffee, Caribou Coffee, etc.) – How can corporate communication help Starbuck to remain on competitive edge against its competitors?E.g Primary Stakeholder: Owner/Investors – Discuss the purpose of these stakeholder within corporate communicationE.g Two way communication within Starbucks – What is the main purpose of applying this? (can take place between top management and operational as well as projecting corporate image and expecting feedbacksE.g Role of Corporate communication in relation to objective of company for e.g: “Starbuck’s objective has always been to emerge as one of the most recognized and respected brands in the world” - What is the purpose of corporate communication and how can it help Starbucks in achieving this objective? | ASSESSMENT CRITERION | BODY/CONTENTS – COURSE OF ACTIONS | The success of Starbucks is due to the strategic integration of its Organizational Identity and Corporate Reputation. Your Task is to test the validity of this statement.
Case 1.1 Starbucks – Going global fast The key aspect of Starbucks case is entering new markets. As said in the case, they’ve met few challenges – some positive and some negative – which included mostly legal requirements, local and global competition presence, coffee prices on potential markets as well as the brand perception and cultural differences. What is important in the case is the aspect of glocalization – think global and act local. Starbucks expansion was in fact the answer for local market oversaturation and growth strategy. Mostly, entering new market Starbucks counted for its reputation and in fact its marketing-mix was only slightly adjusted to specific cultural aspect of new markets.
Shultz not only tried to simulate the atmosphere of an Italian culture house but also inspired by Italian baristas and their skills in making, serving and offering coffee products; later on, he tried to implement this experiences in Starbucks organization culture, especially in training his employees. 2- What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy? Why Japan was attractive for Starbucks? Starbucks International expansion has its roots in successful results from their three-year geographic
Starbucks’ strategy is one built on developing its core competencies to add value to its products and establish an image of luxury and elegance. Core competencies, as defined by Prahalad and Hamel (1990), are “the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies” (p. 81). Starbucks’ core competencies are evident in its capability to harmonize its expertise in real estate, excellent marketing strategies, management capabilities, operational efficiency and human resource management. Starbucks’ founder Howard Schultz wants to build a company that is truly unique. The famed CEO capitalised on the company’s core competencies in order to gain competitive advantage and strategic competitiveness in the business.
The Future of the Starbucks Starbucks is a familiar brand to us, especially to the coffee fans. Starbucks tells us “to live like tasting coffee”. Are there any advantages and disadvantages in the business operation? Can it keep advanced in the fierce competition nowadays? In order to compound the problems, we will utilize the VRIO framework to do analysis.