Starbucks is known to be the number one brand in the coffeehouse segment. Starbucks has had and still has a strong reputation associated with quality coffee and excellent customer service. Having a strong brand name is a marketing strategy with the capability to make any product or service a household name. Strong brand names have the ability to increase customer loyalty and product sales. Starbucks is also said to deliver to their customers with perfectly blended coffee, premium music, friendly staff & a warm atmosphere, which results in incomparable customer service as compared to their competitors.
Unlike before, not all baristas were hand-picked who had mastered ‘both’ the hard-skill and soft-skill required for the job. Moreover, the diversification of customer base and increased product portfolio meant that they had to deliver ‘customer-made’ beverages as quickly as possible and maintain the ‘customer intimacy’ quotient at the same time. The above table clearly states that the most profitable / valuable customer for Starbucks is a ‘Highly Satisfied Customer’ with an average lifetime revenue of
There are countless flavors of Starbucks coffees available in “k-cups” for, giving the consumers more choices for their morning cup without having to wait in line. Due to the international presence of the Starbucks brand, consumers can travel to another country and still be able to order their favorite cup of coffee. There are other brands, like Biggby, that have tried to copy the Starbucks business model by offering similar products (coffee, scones, bagels, etc. ), but Starbucks is at an advantage due to their early presence in the market. Consumers are more than willing to wait in line, listening to countless complicated orders just to get their coffee.
It will give a chance to combine all the benefits of corporation and partnership, while avoiding some of the restrictions forms of ownership. LLC helps to increase capital quickly, gives more management flexibility than the other forms of corporation and avoid double taxation. Our mission is to provide high-end papering services in a caring, upscale and professional environment. Vision Statement After living in New York over four years, Natalia knew she was missing something in most of NYC beauty salons. Something called penitence and full professionalism, which in Poland is called “customer our guest, customer our number one”.
Product: Starbucks mainly specialized in coffees and but also sells other beverages such as premium quality teas, ice-blended beverages, pastries and some of their merchandise like for instant tumbler and mugs. They still continued to innovate more of their products to cater to attract more people to buy their product. For example, in 1994, Starbucks starting selling Frappuccino at their store. Price: Starbucks announced in 22nd September 2010 that there will be an increase of prices for their beverages due to the increasing prices of raw materials such as coffee beans. They tried to maintain the prices to make it affordable to everyone.
For instance, Starbucks has established unique projects such as Starbucks Card and Starbucks Reward which strengthen the company’s relationship with its consumers through customer satisfaction and loyalty. Core competencies of Starbucks and their Competitive Advantage Aesthetic appeal, Customer experience and Cult status: The “Starbucks Third Place Experience” serves as a competitive advantage for the company. This experience is characterized by quality customer service and store ambience that reflects the culture of the communities where it operates. This culture based ambience is believed to have strong contribution to cult following and customer loyalty. Global brand recognition and equity: Starbucks is the most recognized brand in the coffeehouse segment and ranks 64th of the Interbrand / Business Week list of the top 100 global brands.
Strong brand identification or high capital requirements can minimize the threat for competitors. As a brand Starbucks holds very strong reputation in the market. For people Starbucks is like second home as when they get tired of being home or workplace they can sip a coffee there and feel relaxed, which can relate in a bad manner for the new entrants. For Starbucks the threat of new entrants is modest as they have their own standards that are very high to compete with by the other firm. Locally there are many other coffee shops that are developing.
Starbucks attracts a wider range of customers including people of different ethnic backgrounds and ages. She also mentioned that the company has an outstanding number of 25 million people visitors in its stores every week. There are a lot of factors behind this success, besides offering a combination of high quality drinks. For example, they provide the customers a friendly environment with good quality services, music and comfortable chairs, which can lead customers to brand loyalty. Furthermore, technological factors affect the profitability of any business.
Although Starbucks’ brand is quite popular, they still have to be competitive with their competitors. In 2010, their sales took a turn around (Marshall, G., Solomon, M., & Stuart, E., 2012). And Starbucks have been innovating new products to stay ahead of their competition. So far, they have teamed up with Pepsi Cola Company to bottle their different flavors of coffee. And have been doing quite well.
Porter 's Five Forces SWOT ANALYSIS In this strategy, internal qualities and weaknesses of an organization and external opportunities and threats confronted by the organization are nearly analyzed for the future. Major strengths, weaknesses, opportunities and threats of Starbucks are discussed underneath. Strengths: Starbucks has created a brand picture that has reformed coffee drinking experience. It offers wide mixed bags of administrations, for example, open to seating regions with one of a kind music and free remote Internet for their clients while tasting their most loved coffee. This uniqueness separates Starbucks from the greater part of its rivals.