To grow, Starbucks increasingly appealed to grab and go customers for whom service meant speed of order delivery rather than recognition by and conversation with a barista. Starbucks introduced new store formats like Express to try to cater to this second segment without undermining the first. Starbucks introduced many new products to broaden its appeal. These new products undercut the integrity of the Starbucks
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.
Social Issue: Trademark for Ethiopia farmers 3.1 Argument between Oxfam and Starbucks Starbucks blocked Ethiopia to apply trademark for their coffee beans. The Oxfam which ever corporated with Starbucks to execute ethical activities, this organisation raised Starbucks this industry bullying behaviour. Starbucks denied that they intervene this ethical-consumption advocates, and accused Oxfam misleading the consumers. They propose that the reason do not allow trademark is based on the scheme of CAFE (Coffee and Farmer Equity). However, in Oxfam's point of view, Starbucks should aid the poor, and they should not treat this as an excuse.
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.
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.
What competitive advantage might Mystic Monk Coffee’s strategy produce? Father Prior’s strategy is to focus on his narrow market position and win a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers in the market. He plans to execute this strategy by being able to serve coffee, specifically brewed from Catholic Monks, to buyers who wish to support the Monastery. His competitive advantage that his coffee strategy produces is that he is in the business to help support
To follow this mission statement they start at the source of their company, the coffee. They make it a priority to source and roast only the finest beans, while improving the lives of the people who grow them. Next you have the customers, Starbucks makes it important that customers are treated with the upmost respect, and that the employees not only give them a fine crafted beverage but that they make the customers feel welcome. Then there is the neighborhood, every store is part of a community, Starbucks makes it priority to be good to neighbors. Starbucks mission statement acts as a guide for their internal efficiencies by making sure the customers come first and only get the best.
According to "Positioning and Differentiation Strategies of Marketing" (1999-2012), “Michael Porter of the Harvard Business School, differentiation is one of the generic strategies that a firm can use to gain a competitive advantage in the marketplace”. As Starbucks differentiation involves offering something that our direct competitor does not have, and that is Starbuck scented candle in decorative or designed cup have the customer a chance to keep the coffee cup for his or her morning coffee. The positioning of this product is the idea to improved not only in sales but to give back to Starbucks loyal customers a little bit of the scent in a candle, and our special designed coffee mug or cup (Starbuck Logo), in which it will look good as a display in your kitchen, or as part of the in-house decoration, and even better to share as a gift to a co-workers, or decorative as well in the office.
How did Starbucks reduce the ‘distance’ vis-á-vis host countries? Starbucks has used various tactics to reduce its distance from foreign markets. To reduce cultural distance, Starbucks has conducted extensive research in each country, using focus groups and quantitative analysis, to evaluate local cultural sensitivities and preferences. To reduce economic distance, Starbucks has expanded primarily into developed countries. In developing countries, it has focused on major cities first and only later expanded into smaller cities when confident that the smaller cities had consumers with the necessary disposable income.
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.