ABSTRACT Business Strategy and the customer value proposition for the world largest Coffee house. Thomas Hild CMA Accelerated Program – Strategic Management STARBUCKS May 2, 2013 The intention of this report is to review Starbucks Corporation’s the business strategy through the customer value proposition and risks to financial results and reporting. Starbucks operates in 61 countries as a roaster, marketer and retailer of coffee. The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a variety of fresh food items, through Company-operated stores. It also sells a variety of coffee and tea products and licenses its trademarks through their Channel Development segmentation.
Starbucks offers a s imilar fres h ingredien t environment and values its employees highly. Though much larger than Chipotle, Starbucks realized s ignificant growth over the las t few years and has s ucces s fully expanded
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.
Channels of distributions are another. The new variation of latte and espresso sold as a ready to drink beverage sold in convenient stores is different from the traditional cup of coffee at a Starbucks store. This is management controlling the distribution channel in which the coffee is sold. Price is another element. Starbucks is known to have a more expensive product.
At the start, was having created a successful brand strategy coupled with their rapid growth of new store openings in “high-traffic, high visibility settings”. As well, selling premium priced coffee in addition to whole beans. They were particularly skilled at choosing and catering to their target market of “primarily affluent, well-educated, white-collar patrons”. Their competitive differentiation came in creating an “experience” for their customers and specializing in ambience at their locations to encourage a place where the customers would want to stay and hang out. Schultz vision was to create a “third place” (other than home and work) for its patrons to want to be.
Coffee: Everyday Social Drug and World Changing Export Coffee in the western world has not only had an impact on the social aspects of the everyday, but has also helped shape the growth of nations through its cultivation and export. This essay will review the influences this social drug has had on the sociological aspects of consumption, ritual and taste in our everyday lives, its effect not only as a social custom for many of the worlds nations, but also the impact coffee has had on the economic growth, industrialization, and modernization of previously impoverished nations who cultivate and export this highly demanded commodity. Coffee is one of the most consumed beverages in the world and has become a daily fixture that features in the lives of many. The beverages popularity became significant during the industrial revolutions of Europe and North America in the nineteenth century. Coffee drinking is widespread across the world and has become a mainstay of social customs.
The café have first mover advantage to be first in business but Starbucks are technologically advanced and have wholesale coffee business in the market. For example on Starbucks’s website (2012) it states, “in addition to sales through our
Starbucks in Japan, United Kingdom and Morocco. Examining the role of cultural distances in Starbucks’ foreign expansion efforts. By - Jeremiah Taylor Karima Elghiyati Christopher Funk Global Strategy 6440 Professor: Yi Jiang Saturday, June 07, 2014 Intro The wild success of Starbucks in the United States has given the company a desire to expand into foreign markets. While the company is ubiquitous in American culture, it aligns itself with the fast-food coffee experience that Starbucks drives. This experience is at odds with many other cultures and the traditional coffee shop experience which provides a social nexus and central meeting place.
Coffee Roasters operates in the niche market of Fair Trade Coffees. Just Us! Coffee Roasters is wishing to expand their company, thus profits, which means that they face more competition from outside their niche market. As a result, Just Us! Coffee Roasters now must compete on a large scale against strong mainstream competition and well established local and international brands.
Date: 5th June 2011 To: Howard Schultz, CEO of Starbucks From: Minnie Lai, EK consultant Subject: An evaluation of the distribution channel used by Starbucks. The following report is being prepared as your request. The findings are as follows: Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 50 countries, including over 11,000 in the United States, over 1,000 in Canada, and over 700 in the United Kingdom. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers.