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Starbucks Case Study Essay

835 Words4 Pages

Starbucks Case
1. Answer the questions at the end of the case.
1. Absolutely, Shutltz’s business model can be challenged. Shutltz’s has a fantastic business model, but any business model can be challenged. The question is if it can be done successfully. Dunkin Donuts and McDonald’s are both trying to take market share away from Starbucks, but if they will be successful only time will tell.
2. There are several ways to prove that happy employees lead to greater sales. First, you can compare yourself to your competitors who may not provide as many employee benefits. Also, you could change employee benefits and see if that negatively affects your sales.
3. I do not frequent Starbucks, but I do enjoy it on occasion. I like it, but I think it is too expensive to indulge in daily.
4. I would frequent Starbucks more often if they had a better rewards program. Starbucks ‘stars’ expire too quickly for me to really take advantage of it. Dunkin Donuts perks do not expire, so I am able to enjoy their rewards program more.
5. No I do not see a limit to Starbucks’s growth. They will eventually reach market saturation in the United States, but I think if they can …show more content…

However, in addition to this I think that another of the product Starbuck’s offers is its community gathering place. I personally go to Starbucks to hang out with people and I know of a lot of people who have meetings there. As far as promotion I am personally on their email list, so I know I get a lot of emails about specials and different seasonal drink they are offering. I also see advertisements for them online. For pricing they are able to charge a premium because of the brand and atmosphere they have created for themselves. For place they have the idea, that the more stores they have the more sales they will have, so they are all over the place. They have locations in towns, in mall, airports, and many other

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