Starbucks Case Study Summary

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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
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First of all this is great, getting new customers who are not in to coffee, but like Frappuccinos is fantastic. First, of all it shows Starbucks has the ability to diversify. Secondly, it shows that Shultz has achieved its goal of making a gathering place. I have plenty of friends who do not like coffee, but will still come to Starbucks with me and get a Frappucino and hang out with me.
2. What are the company’s strategies for the 4 P 's (product, promotion, pricing & place (distribution)?
Starbucks products include coffee, lattes, frappucinos, and some pastries and breakfast sandwiches. 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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