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.
They purchase and roast high quality whole bean coffee and serve it with different beverages and even sell coffee-related accessories and equipment. Starbucks believes that the company should keep their customers happy all the time and contribute positively to their communities and the environment and recognize that
Starbucks Coffee Company – Business Analysis November 30, 2013 Table of Contents 1. Abstract.……………….…………………………………………………………………..3 2. History and Nature of the Company…..…………………………………………………..4 3. Business Strategy and Business Model……………………………………………………5 4. Macro-Environmental Analysis…………………………………………………………...6 5. Five – Forces Model………………………………………………………………………7 6.
The logo and its color were changed. What was their source of equity? Answer: Starbucks deals with brand equity by always taking the future into account. By this I mean that they switched from selling coffee beans and equipment to being a coffeehouse which got everything started. Starbucks deals with customer equity by having highly trained as well as skilled employees.
The company has also expanded their offerings into grocery stores which distribute Starbucks-brand ice cream and coffee. Howard Schultz currently serves as the Chairman, President, and Chief Executive Officer of Starbucks. He joined the company in 1982 as the head of marketing and purchased the company in 1987. In 2011 he was ranked by Forbes Magazine as the 22nd highest paid CEO with a total compensation of $29.73 million. Starbucks and Environmental Strategy Unlike many other companies, Starbucks has been highly vocal about their goal to minimize their environmental impact and have made sustainability a part of the company culture.
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.
To examine how the political risks would impact a company, this paper would discuss Starbucks Corporation (“Starbucks”) as an example, as well as the ways that Starbucks can evaluate these risks before entering a new market. Company Background The Starbucks story began in 1971. Back then Starbucks were a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. Today, Starbucks is a big multinational coffee and coffeehouse chain / outlet company which is privileged to connect with millions of customers every day with exceptional products and more than 17,000 retail stores in over 55 countries (Starbucks Corporation, 2011). Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through company-operated retail stores.
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.
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.
How are the trends of health concerns, the ageing population and anti-globalization likely to affect the continued growth of the company? SWOT analyses of Starbucks. Strengths: 1. Starbucks is a famous brand around world which offers good tasting coffee which is widely needed and it offers music with its coffee, so it has a broad market especially in BRIC. 2.