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Starbucks monopolistic competition
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The coffee shop has a welcoming environment the baristas greet customers as they come in. The cafe is pretty retro-style industrial due to layout open ceiling where tubes are visible and with light frames hanging for ceiling. The right side of the coffee shop has a family size table where a big group of people could seat looking and out a big window. In the left side it looks like more of the social side, where against the window there is tall chairs, and table for a seating of two people. Right in front of the high chairs there is about four tables that are small probably a four seating set. The color are very neutral and it matches the industrial theme of the coffee shop. The left side is has black dark color and the right side has dark …show more content…
The customers looked like they are in the corporate working class and basically come in and grab a coffee on the go and other sit with coworker and chat. The ages mostly varied, I saw 25 to 36 years old as it got later, the younger customers started to come in more frequently 25 and younger. The ethnic was mostly Caucasian and Asian American or middle eastern so there was a combination. Most of the family life cycle (FLC) were solos so is not a family place the coffee shop is more a place to me with friends, but there was a guy that brought in his son approximately 7 years old doing his homework. So in a way it could be a place for peace and quiet. Psychographic segmentation variable is probably best describe in motives and lifestyles. By the left side were the drink were ready there was a sign "Join our even on 12/02 100lb challenges Donate to our Troops" this will insurance appeal to consumer 's emotional motives to care for our troops and donate. Some insights about customer service was that the barista was very patient not in a rush even though the place was busy. Some positives side of the store is that it had free wi-fi but I think they should improve in chairs because they looks wore out. Another think that surprise me was that before I got my drink the steamer …show more content…
I think this could make a stronger statement. Another product recommendation would be better side food, I got a sandwich and it was very dry and not gourmet. I think this could be a deal breaker since Starbucks do offer better quality of sandwiches. Place strategy was a weakness since the steamer was broke customers were not getting the product they wanted. The recommendation like a mention previously would be having a back up machine. Some promotion strategies could improve by persuading and reminding big companies around maybe they could offere delivery. As for pricing strategy a great recommendation would be having a lunch or late lunch packages. This packages would include a drink (coffee or any choice of drink) plus a side (sandwich, salad or bakery good) and a healthy treat (fruit or granola bars). In general my experience at Tully 's coffee has never been bad is a good place to stop have a cup of coffee and hang
For my report, I observed the customers at a Starbucks in downtown St. Petersburg. Each time I visited this establishment, there were consistent factors as well as unique ones during each observation. The morning crowd of people was vastly different than the evening crowd. I did however see many parallels with the morning and lunch time crowd. Each time I visited, There seemed to be an upbeat and fast paced environment.
Inside the coffee shop, a great deal of thought has been put into spatial distribution. The space is small, but every square centimeter is utilized for sitting, ordering and preparing and displaying food. The floor plan allows customers to move in a structured way to order and then sit down or leave. The floor plan is similar to a continuous circular flow of costumers, that starts when you walk in the door and ends when you leave. Like an assembly line, this suggests that Canadian culture is very rigid and structured. The sitting area consists of small tables that let only three people sit comfortably at one time. The sitting chairs are upright with a hard surface; they're not comfortable and relaxing in the least bit. Upbeat easy rock music plays in the background, this music is very safe in that all ages can identify and accept it while still loud enough to not hear the noisy kitchen in the back. Bright lights, along with the chairs, tables and music create an atmosphere and mood that does not allow people to get too comfortable.
Seattle-based Starbucks recently announced another price increase for all milk-based beverages at the largest coffeehouse/coffee bar chain in the world. With its trendy appeal and shop on every block personality, Starbucks built itself into one of the premiere brands in the world alongside Google, McDonalds, and Coke. With growth comes competition from all directions. Along with longtime Starbucks enemy Dunkin Doughnuts, a new contender for the java king title has emerged as new java joint, High Point Coffee pushes its way into the fray. Based in Mississippi, the newbie java spot has only been in business for less than five years. However, with its surge in revenues and customer retention, executives recently decided to push the brand nationally, going into direct competition with what they call
BB's Cafe offers New Orleans-style dishes with a touch of Texas flair. Its welcoming setting is great for grabbing a bite to eat for lunch with colleagues or dining out with family. Owner Brooks Bassler is proud to share his grandmother's recipes with locals or travelers to the area. BB's Cafe has starters like fried pickle chips and Cajun-style taquitos stuffed with blackened shrimp. Patrons can enjoy an entrée of crawfish tails smothered in a red roux, shrimp and grits or oven-baked flounder filled with crab dressing. This restaurant also serves its popular New Orleans-style po' boys and hearty salads.
Christine Day's interpretation of the market research made her think that by shortening the service time for each customer to maximum 3 minutes, all the problems would be solved. However, this solution came with the price of $40 million per year, due to a significant increase in the labor. The proposed solution would most certainly lead to the result desired by Day, but would it be enough to restore Starbucks' damaged brand image? Are 20 seconds of customer service really time worth $40 million per year? This is the question we are trying to answer in this case, while seeking alternative purposes for this expenditure, in order to achieve higher benefits.
In regards to the corporation’s balance sheet, it is necessary to place an importance on liquidity ratios to demonstrate the company’s ability to pay its short term obligations such as accounts payable and notes that have a duration of less than one year. These commonly used liquidity ratios include the current ratio, quick ratio, and cash ratio. All three ratios are used to measure the liquidity of a company or business. The current ratio is used to indicate a business’s ability to meet maturing obligations. The quick ratio is used to indicate the company’s ability to pay off debt. Finally the cash ratio is used to measure the amount of capital as well short term counterparts a business has over its current liabilities.
The first question in which is asked of me for this assignment is, what is the demographic make-up of their customers? During my scan at this particular Starbucks the average age of each customer was from the low to mid-twenties, but then there are the occasional older folks in which would bring in there children of which where the ages of twelve and younger. When asked about the ethnicity of which the customers are, Starbucks holds no boundaries to that question. During my stay there where many races in which where there such as Hispanics, Caucasians, African-American, and there where also other races in which I do not even know the name of in which where there. The socio-economic level of most customers seemed very high, it seemed as if everyone there is well educated and it seemed as if most people in which where there are attending college our have attended college.
Payson loves coffee but decided she would try two different businesses coffee. The two businesses were 392 Cafe and Starbucks. Payson loved 392 Cafe because of their coffee, bakery, smoothies, the work setting, and the workers personalities. She has not gone back to Starbucks due to her enjoyable experience at 392. The bubbly personalities marked a spot in her loving heart that no other coffee shop can compare too. She loves doing her homework there because it is so relaxing. Payson loves seeing people walk in with huge grins on their face. 392 Cafe is such a positive atmosphere. Of course the coffee is stellar. Starting out as an anti-coffee person because of terrible experiences, she loves 392’s coffee. It just has the perfect mixture. It is not too black, but not too creamy either. Although many coffee lovers will argue that Starbucks is better than 392 Cafe, further investigation proves that 392 Cafe is better according to the surrounding area testers.
...nal locations in the heaviest coffee drinking countries. This has to be done quickly as to get the jump on other that may also be considering this type of a move. At the same time they should be selling franchise right for the coffee carts. This will provide an increased cash flow as well. During all of this Starbucks should be looking at coffee producers who are in financial trouble or are looking at selling their farms. This has to be done discretely as not to cause unnecessary bad press. After they run a couple of these coffee producing farms for a few years they should be able to see how the whole operation works and determine its viability. Once it’s proven viable they should send out simultaneous offers to the biggest producers as to catch them and other coffee companies off guard. Starbucks also should be getting into the bottled Frappuccino as soon as possible. They should leave the introduction of the product up to Pepsi because of their past experience. They should leave their entry into the grocery store market until some of these other strategies are implemented. This will prove to be the best strategy for Starbucks being able to reach their long-term gaol.
The structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear. Pick up any newspaper and you are likely to find an article about the coffee giant. Starbucks pledges a commitment to their over 172,000 partners (employees) and the community. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, 2008).
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
Caf? Expresso, as the first mover in the coffeehouse marketplace, which has expanded quickly and become one of the ?big three? players in the global coffee shops chain. However, recently this company is continuously facing a lot of problems in terms of its staff, easy-copied business model and product range, resulting this company lost its leading position to the number three. Therefore, its adjusted visionary goal is ?return Caf? Expresso to the number one position in the marketplace? (Beardwell, 2010). To achieve this goal, Caf? Expresso identifies ?the coffee drinking experience? is significant to achieve competitive advantage and customer value-added, which was delivered through three key elements (graph 1),
1. What do you want to know? Fill in the blanks: I am studying the: day-to-day operations of a coffee shop because I want to find out: what role patrons and employees play within the coffee shop in order to understand: the hierarchy of the patrons and employees of the shop 2.What is the research question you will investigate? How does the use of coffee shops differ between patrons and employees?
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.
The coffee shop I decided to do my observation was the well known Starbucks just a couple blocks away. The reason I chose this coffee shop was because of it 's style inside, it attracted me. For example, one side of the wall has a glass top, and the lower part of the wall, made of wood and painted in a bright red color, which was one thing that attracted me and stood out. Outside of the shop people can actually see through the glass wall and get to see what’s happening inside of the coffeeshop. By the entrance you see these two red ceiling lamps which were shaped in a flower bud and these two tall green plants. Once you were in, on the right of the shop there was a counter with food and things to put in your drinks such as milk, sugar, chocolate, etc and the colors and how the food was displayed and served was appealing to my eyes. Behind that counter there was a long table with different electronic devices plugged into the wall. On the middle of the those there is a fridge just for ice and when I turned to the other side and I noticed a big menu on the wall. Further more into the shop, there was an area filled with tables, chairs, and sofas. The tables were in different shapes, one was round and the others rectangular, also there was four bamboo baskets and I looked around and noticed that the walls in that area were decorated with paintings.