Starbucks offers a variety of coffee and coffee products in their retail stores and in grocery stores worldwide. Recently, Starbucks has added value to their retail stores with the expansion of their breakfast and lunch food selection, as well as with the arrival of the Starbucks Blonde Roast Coffee. Through value exploration, the avenue by which a company identifies new opportunities (Kotler & Keller, 2012, p. 58), Starbucks discovered there was a large group of consumers who preferred a milder roast coffee, when compared to the traditional dark roast coffees. In hopes of meeting consumer preference, the Starbucks Blonde Roast was developed and introduced as the newest brewed coffee by Starbucks. It is a “lighter, mellower roast coffee developed to meet the demands of consumers who requested that Starbucks create a lighter-roasted coffee.” According to Smyl & Edelman (2012), Brad Anderson, master roaster for Starbucks, said of Starbucks customers, “They told us they wanted a flavorful, lighter-bodied coffee that offers a milder taste and a gentle finish.
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
They meet this mission by buying these environmentally friendly products. For example, 86% of coffee bean sourcing comes from farms protecting the ecosystem (Starbucks Coffee Company, 2012, Responsibly Grown Coffee, para. 9). This includes coffee beans grown under the canopy, even though the growth is slower; thus preserving the canopy and the life it supports. 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.
was given the highes t weighting of the comparables at 40% becaus e of its realized growth and its brand identity. Both Chipotle and Panera s trive to deliver fres h ingredients and provide s imple goods at a relatively fas t rate. They are als o located s olely in the US & Canada and have yet to expand into Europe, although they plan to when they find a s uitable menu. Starbucks Corp. (SBUX) – 20% Starbucks purchas es and roas ts whole bean coffee in the United States , Canada, UK, China, Germany, and many other countries . 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 .
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.
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.
The Espresso Lane to Global Markets Harvard Case Solution & Analysis The Espresso Lane to Global Markets Introduction Christophe Reale, the managing director of Espressamente is concerned about the future growth opportunities and the presence of Espressamente in the global market. However, entering into the global arena required prioritizing the market where the company could exploit the potential market and devise successful strategies in gaining highest market share. Analysis of Situation Faced by Organization Internal Analysis SWOT Analysis Strengths Illy has an experience of producing the world’s finest coffee while focusing its production on quality. Illy has strong international presence in over 140 countries with over 50,000 coffeehouses and restaurants. The company’s culture solely depends on providing quality coffee and to introduce innovative designs and new product ideas.
Schultz saw the opening in the U.S. market to capitalize on the coffeehouse experience that was undervalued at the time. 2. What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy? Starbucks had over 700 stores in the United States at the time that they decided to expand internationally.
First being high quality beans. To ensure quality beans they controlled as much of the supply chain as possible. ‘They worked directly with growers to purchase green coffee beans. They oversaw the custom-roasting process and controlled distribution to retail stores’. Second was their “customer intimacy, which translated into a large variety of coffee selection as well as customization by the drinker.
A. B+ Howard Schultz had a vision of transforming Starbucks stores into an espresso bar, with a barista serving each customer with a performance of “great theater.” Mr. Schultz was passionate about his vision and was very persistent with the transformation of Starbucks. His strategic vision was for Starbucks to serve fresh brewed coffee, Espresso, Cappuccino, selling freshly ground or ungrounded dark roasted coffee beans, in numerous Starbucks café in the U.S and Canada. Schultz other strategic vision was to earn a profit every year, to become a national company with values, establish guiding principles that employees could be proud of, and to create a branding with the name Starbucks as the most respected brand name in the coffee industry. The objective for Mr. Schultz and Starbucks was to open one hundred twenty five stores in five years- fifteen stores in the first year, twenty the second, twenty five the third, thirty the fourth and thirty five the fifth year. Also, another important objective was to