Case Study: Starbucks

1. Recognize the need for change. What problems do you see now or foresee in the future, that will lead to a down turn for Starbucks.

One critical obstacle for the Starbucks franchise is the over saturation of the market, they continued to build new businesses in local markets with out giving each the opportunity to solidify their customer base, some building as close as 2 blocks in large metropolitan areas. The economy could also have a direct impact on the Starbucks franchise. During times of prosperity and job security it is more comfortable to spend $2.10 on a 16 oz. cup of coffee than a $5.15 for a medium sized specialty coffee drink such as a Café Mocha or Carmel Macchiato. When the economy is down, the average consumer will cut

Microstars - this concept allows for growth in an untapped market. Microbrews are a solid bet for the future. With the quality control used by Starbucks in all their endeavors, I see them having the capability of hiring master brewers that would create a truly wonderful microbrew experience, in a global market using select Starbucks signature blends to diversify their market reach and the brand logo. If customer spending is down during morning periods while people are starting their work day, some of its revenue can be salvaged by catering to a market that spends their disposable income in the evening while winding down from a hard days

Loyalty Program - Being a tech junkie myself I find this to be one of my favorites. With the advent of Near Field Communications (NFC) such as Bluetooth, ApplePay, Paypal etc, instead of using the normal punch cards as a customer rewards system, an app can automatically track rewards and apply them at the time of purchase. Most people don’t leave their home without a smart device, and utilizing a medium that is almost always carried by the vast majority of customers, that can remove the hassle of keeping track of punch cards or delaying the customer purchasing experience by holding up lines, etc, can be a powerful tool, as well as a surprise to the customer when they pay for a cup of coffee, and all of the sudden it is “free”, because their rewards were automatically applied at