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.
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.
After almost a year and half, Jerry Baldwin and Gordon Bowker, his former employers, offered to sell to him their Starbucks stores. Schultz took on the challenge and began to raise money to buy them out. He collected $3.8 million. After winning a very close battle with another potential buyer, he went ahead and combined his vision of a coffee shop with that of what was already present in the well known Starbucks stores- and so he kept the name and began the Starbucks Coffee Company that we all know and love today. The journey to success, however, was not without its obstacles.
In this essay, coffee selections, food selections, and interior and design of Starbucks and Tim Hortons will be compared and contrasted. Coffee is a popular choice of beverage no matter what the time of day it is – morning, noon, and night people want their coffee. Tim Hortons and Starbucks both offer great coffee options, though they are extremely different. Tim Hortons sticks to simple, regular ground coffee for a reasonable price. On the other hand, Starbucks offers exotic and different types of coffees for a higher price.
Qualitative and high fashion items for a low price. Weakness – it’s a small business unit, need to do future competition similar company. * Starbucks Sector – secondary Owner ship- Public Limited Company Business activity – it sells the hot and cold drink and breakfast Competitors – this is a local shop in London. But competitors of this are Costa because it sells the same products as starbucks. Success – * Finding innovative solutions - They sell the healthy breakfasts and also have different type of coffees and any more drinks * Meeting customer needs – they have loyalty card that customer can use it * Identifying new needs - They look for what customers want in their website.
(1)value-creative The Starbucks once declare its ultimate goal is to open 25000 branches in the world just like the 30000 branches of McDonalds. It can’t be denied it has this confidence for its product quality and rich human resource support. Product quality The Starbucks has devoted itself into operating the best roasted coffee beans。After transformation, the Starbucks has established special procurement system and purchased the best coffee beans in the world so that the people who are fond of Starbucks can taste the purest coffee. In order to guarantee the quality, the Starbucks insists the four principles: it declines the franchise for that it does not believe the franchises can care quality management; it does not allow to sell artificial coffee beans and use chemical essence to pollute the best coffee beans; it declines to enter the supermarkets and
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.
Prahalad and Hamel (1990) stated that only few companies have proven themselves to be skilful at inventing new markets, quickly entering emerging markets and radically changing the behaviours and preferences of customers in established markets. They added that the decisive task of companies is to create an organization that is capable of infusing products with irresistible functionality or creating products that customer need but have not yet even realized. Starbucks is definitely one of these companies. There is no doubt that the firm was able to introduce products that not only exude luxurious characteristics but also able to create coffee products that made the customers fell they need these coffees. Starbucks’ strategy is one built on developing its core competencies to add value to its products and establish an image of luxury and elegance.
319).” Starbucks did recently face its own struggles from the recent recession, but I believe it is a company that is fearless, hungry, and innovative which is why it will continue to climb to the top. Starbucks is a business that has what it takes. “We are not in the coffee business serving people, but in the people business serving coffee (pg. 323).” That statement says it all! I have so many good things to say about this company, and it’s not because I’m a regular there.
Howard Behar from a Conference Board webinar from 2010 made the following salient comments about Starbucks (and Hospitality) which have strategic relevance for companies: Among other things, - Hospitality is A Human Experience 1) Relationships are created by great experience 2) Structure is not the goal – “Let the experience happen” 3) Develop staff as oppose to training them – humans develop; they’re not ‘trained’ - Strategic Relevance and the idea of 'Intra'preneurialism 4) Incremental sales matter to the overall bottom line – new product development through product customization not yet systematized but potentially ad-hoc operationalized should be considered (nb. that special drink your local Starbucks makes that other stores don’t yet know about). Behar talks about this in terms of Frappucino's development. 5) Keep it simple and in-line with 4 'golden' (hospitality) rules: keep it legal, ethical, not immoral, and, particularly relevant for Starbucks, don’t poison anybody. A fifth rule could be to keep it secret until you have SLT buy-in based on results - Strategy not always a planned process: 6) Be present at the Coal Face especially if you’re SLT or Frontline staff 7) The success of Starbucks is about being a “People Business Serving Coffee; Not a Coffee Business Serving People” 8) Institutionalize innovation and entrepreneurialism at a corporate level; which is not a recipe for anarchy, rather it’s a cultural shift for accountability Bottom line: the sustainable competitive advantage is based on People – put another way, Starbucks is the way it is because of its staff.