Case: Starbucks Starbucks was founded on a vision of a coffee community or “third place” where friends could meet to talk, work, or just hang out. The company quickly became a worldwide phenomenon characterized by rapid store expansion, add-on services (drive thru, music, sandwiches, etc.) and the best place to find gourmet coffee. Just as quickly, however, Starbucks’ success began to slip with declining customer visits, a falling stock price, and the actual closing of some locations. This case looks at how non-brand decisions (financials, contracts, locations, add-on services) eroded Starbucks’ brand positioning and brand equity over time.
The emerging Chinese coffee drinkers see Starbucks as a type of restaurant and with a cup of coffee costing as much as a days salary for many, this new trendy generation, much like the American yuppie, see these outlets as a place to show off their sophistication and hip western ways. As long as Starbucks continues to
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.
Starbucks differentiate itself from other coffee shops by providing unique customer experience. It has very high standards of customer service, due to which it enjoys customer loyalty. Starbucks has been facing stagnant coffee sales and to overcome this, the company has decided to continue its global expansion. Starbucks has been looking to expand its product mix. To achieve this Starbucks has come up with a new concept called Starbucks evenings.
Starbucks has its very own advantage compared to his competitors because they possessed the technology and expertise in verifying the quality of their coffee beans are top-notch before they used it in their products (Figure 1.1). In addition, their product is mostly made of environment friendly ingredients such as reusable cup whereas most of the competitors could not achieve the recycling and reducing waste concept due to the high cost involved. Furthermore, Starbucks doesn’t franchise its stores to the private market. It’s simply because the mentality has a lot to do with maintaining high company standards from stores to stores (Bonander, 2007). Next, they offer specialty coffee selections, flavours, and variety.
They make amazing coffees from the finest quality of Arabica beans thus they are able to maintain their focus.The closed down all their entertainment studios and began focusing solely on coffee.Then is opportunity.Without opportunities,Starbucks wouldn’t have been able to expand it’s business globally.Originally,Starbucks coffee shops are only used for short hours but now there are also stores that are open for 24 hours but most stores are open atleast until 10pm.This gives Starbucks an opportunity to sell their food and beverages for a longer time thus can use their materials efficiently to gain higher profit.Besides that,Starbucks took the opportunity to expand their business into Asian countries as Asians love coffees and teas and then into Europe countries.Starbucks also open their stores in busy places such as malls,near colleges and
The other strength was its distribution channels, including its stores and coffeehouses located in strategic areas. Starbucks is additionally famous for treating its employees well, giving
Local cafes can offer much lower price and more suited menu for its customer. Big coffeehouse chains specialize so they wouldn’t need to compete head-to-head with Starbucks. In both situations, Starbucks experiences intense competition and loses market share. 4. Saturated markets in the developed economies.
Even though Starbucks is a strong organaization that is an example other competors refer to and look upon too, here are some tools that we recommend to support imporovement in Starbucks: To boost the awareness of the great things Starbucks does for local communities: Many customers don’t know that Starbucks support local volunteering and anybody can find a community service project with Starbucks and they are many thing Starbucks does. To Increase the length of time to spend in training new baristas. New baristas takes around day three to day five of training which isn’t reasonably enough. To make time for coffee education together with coffee seminars including customers. It's a way to widen enthusiasm for the whole bean coffee wall is to
The organization is putting resources into programming and portable applications, for instance, that empower its representatives to effectively get to data like work routines from their cell phones. Over this, Starbucks is driving buyer faithfulness with the progressing achievement of its My Starbucks Rewards, or MSR, activity. Tamara explains that their Rewards program is vital to the organization's continuous achievement on the grounds that notwithstanding driving income development and benefit, it additionally develops long haul client unwaveringness to the Starbucks mark. However where the organization truly succeeds is in consolidating these portable and advanced activities into one durable client encounter. Therefore, Starbucks' unified mobile strategy is one sustainable competitive advantage which will create enormous gains for the company for many years to come and develop the