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Starbucks history essay
Marketing strategy of Starbucks in China
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Founded in Seattle, Washington in 1971, the Starbucks Corporation has become the leading specialty coffee brand in the world with operations worldwide and over 23,768 locations. It does not matter what part of the world you are in, the green Starbucks logo is recognizable in any modern country. Starbucks has open their coffee scented shops in United States, Canada, Japan, South Korea, United Kingdom, ans recently China with great success. Recently, there has been talks to open a stand alone store in the Nordic region, in Norway 's biggest city and capital, Oslo. Although the company currently has eight stores in Norway, their stores are "hidden" inside train stations and airports. Hoping to turn Starbucks into a household name in Norway, …show more content…
After all thousands of years of traditional tea drinking cannot easily be broken, for example, instead of offering flavored frappacinos and caramel macchiatos like we have here in the united states, Starbucks developed a range of Chinese tea’s flavors, such as green tea-flavored coffee drinks, that appeal to local tastes and began selling traditional desserts like Mooncakes. Another reason why Starbucks in China has become so successful is the cultural difference between American and Chinese consumers. The American consumers is always on the go and have the need to get their food and beverages as quickly as they can, Starbucks now lets consumers order their coffee with a mobile app and have ready to pick up in the store without waiting in the line. And the clients who do decide to have their coffee in the store are in a corner working on their laptops as a "Do Not Disturb Sign" going on with their business without interruption. In China however, Starbucks has a become a ideal social setting to meet up with friends and family. With chic modern interior, comfortable seating, and upbeat music, their locations appeal to the younger …show more content…
They also offer a wide selection of merchandise such as gift sets and water bottles with brighter tones and Chinese style graphics emphasized for clients to buy. With Chinese middle class purchasing high-end goods and Western technologies like laptops and smartphones, Starbucks has also decided to interact with its customers using social media such as “Weibo” and “Alibaba”. Considering all the factors that went into assuring the success of Starbucks in China, would Norway have the same luck. The Nordic region is considered one of the ten largest economies in the world, Norway being one of the most populated countries in Europe. The country’s biggest exports include oil, fish (salmon), machines, and iron/steel which is quickly becoming the fastest growing export. With a large middle class and unemployment rates and low interest rates , every person is a consumer. The country’s family and social culture is very similar to the of the United States, also coffee has a huge part of the Norwegian culture, so not a lot of changes could be made to fit the Norwegian consumer. One difference is that Unlike Americans who prefer more of a dark roast, Norwegian prefer a light roast prepared in the kokekaffe method, a traditional method of drinking coffee where you boil hot water and steep the coffee for four
They are currently operating in a worldwide captaincy extent in the Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development. Starbucks has gain the international market. If Starbucks can start their cooperation in Italy, it is now going to become an open market to any country in the world. We will begin to look at Honduras as a next global expansion. Starbucks currently offers their customers a variety of coffee, teas, packaged roasted whole bean or ground coffees, single serve products, juices and bottled water. Each store provides a menu of fresh food, several ready-to-drink beverages, along with varieties of packaged ready to go food products. We can begin to look at how we can incorporate this into our new market of Honduras.
Starbucks in today’s date is the world’s largest coffee chain. The brand which was founded in 1971 has established itself as the world’s leading specialty coffee brand with its more than 13000 outlets in 39 countries. The company has had an impressive record of sales and growth also. Something that differentiates Starbucks from others is its coffee as well as the special Starbucks experience. Starbucks serves more than just coffee. It is also known for the relaxing ambience where the customers can relax and sip with their friends. Starbucks is famous for its genuine service, inviting atmosphere and of course superb coffee. The company is committed to quality and it is due to its commitment to quality that its product pricing is also premium. However, despite the premium prices of its products the brand is loved around the world by the customers for the quality of products that it serves.
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
Starbucks was founded in 1971 as a small coffee bean roaster and retailer in Seattle, Washington. For years it was just that one store, but by 1982 they had five retail stores that sold supplies and beans for brewing coffee. A wholesale business was soon established. Ever since then the company expanded at a rapid pace and since 1987 it has opened an average of two stores every day. The current President and CEO of Starbucks is Howard Shultz. When he visited Milan he came up with the idea of an espresso bar. Shultz realized that America was lacking in the high quality coffee shop area. He wanted to incorporate high quality coffee with a relaxing area where people can meet and do work. When the Starbucks started to be designed they had woods
This case study revolves around Starbucks ability to launch an aggressive expansion in China, a coffee frontier steeped in nearly 5,000 years of tea, Starbucks location-scouting skills and marketing savvy will be put to the test. This case study involves three questions: 1) Should Starbucks continue its expansion in China? 2) Will the Chinese be persuaded to drink coffee instead of tea after 5000 years of no consumption of coffee? 3) Will Starbucks current marketing plan work in China without advertising?
Starbucks is one of the most recognizable and successful coffee brands in the world. Starbucks believes in serving the best coffee possible. Starbucks’ international market that was expanded into China in 2002, still has only a tiny part of the Chinese beverage market (Harrison et al., 2005). The company President, Charles Shultz is ascertaining the possibility of establishing new coffee houses in China.
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
...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.
Compare the globalization approaches of Starbucks & McDonalds The parameters to be used for this comparison are:
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
Coffee market in Taiwan is also important. Since 1998, Starbucks enter the Taiwan coffee market, more people have adapted the habit of drinking coffee (De Pelsmacker, Driessen and Rayp, 2005). Taiwanese consumers have more opportunities to face different types of coffee options. Consumers usually have positive attitudes for ethically made products. Most of consumer would be willing to pay a higher price for fair trade coffee, but they care more about the brand, label, and taste of the coffee
In 2003, Starbucks was listed as one of the Fortune 500. Despite the ongoing recession, the company had managed a 31% increase in net revenues for the year. This was reasonable, considering they only spent about 1% of total sales on marketing. All of this, coupled with the fact that they were popular with customers and employees, was a sure recipe for success.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
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.
Starbucks has identified high value opportunity in China, India, Brazil and Japan. The large expansion opportunity of twelve billion in China alone is enough to drive Starbucks to expand globally. The organization has planned to double its footprint to 3000 stores in China by 2019 ("Starbucks Details Five-Year Plan to Accelerate Profitable Growth", 2014). Starbucks realizes that eventually there will be a diminishing return on their existing market within the US due to market maturity and there are only two ways to expand through diversification in their offerings and entering new markets. Given the international opportunity for growth and expansive tea market in Asia, the company will enjoy the benefits of the growth opportunity. Management’s decision to continue to grow globally is a driving force that has yielded