The Coffee Industry: Starbucks

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Introduction Starbucks is a US based corporation that has established itself as the market leader in the coffee industry with its unique portfolio of around 87,000 unique drink offerings that mainly consist of different variants of coffee, & also includes tea, a range of fresh foods, & other beverages. Their exhaustive chain of coffee shops offer a social experience combined with high quality coffee & beverages, have significantly contributed to their success. With over 21 billion US$ in 2015, 19.286 billion more than it's nearest competitor, Costa Coffee, the company has been growing by reinventing itself through clear understanding of evolving customer expectations & changing market trends. Starbucks managed to recover from the impact…show more content…
This worked in the company's favour but did not sustain. The number kept on decreasing gradually & today, more than 75% of the people just want to pick their choice of beverage before moving on. They did well to identify this change in behaviour & took measures to make customers stop at their outlets. Their 'Third Place' campaign, which identified Starbucks as the place between home & place of work was extremely well received. Currently (as of September 2017), 58% of customers have reported that they stop only to pick up their beverage of choice & consume it on the way or at their workplace. The company used technological innovation to meet customers' changing expectations. It embraced technology as customers were becoming tech savvy & had a strong online presence. They identified that customers were unwilling to spend the average 12 minutes to pick up their favourite beverage. As a solution, they provided a mobile app with order-ahead feature where customers could order their beverage in advance & pick them up at the store without any wait time. The company currently handles more than 6 million orders per month from mobile…show more content…
The company's decision to use technology to enable decisions has borne fruit, with the number of mobile users increasing by 25% on an annual basis ever since it was introduced. The company also offers free wifi for customers, knowing that customers are very closely connected to the internet. This has resulted in some people making Starbucks stores their place of work. In some stores, the company has taken it a step further, offering high-speed wifi for startups & freelancers, increasing the appeal for the

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