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Business-level strategy of Starbucks
Business-level strategy of Starbucks
The growth of starbucks
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When people think coffee shop, the first name that pops into their head is usually Starbucks. Pike Place Market, located in downtown Seattle, is home to the first Starbucks. The doors to this coffee house were opened in 1971 by three graduates of the University of San Francisco. The establishment was later bought by Howard Schultz in 1987. His vision was to bring an Italian like coffee house to the United States. There are now currently more than 18,000 Starbucks stores, in over 62 countries. The average price for a specialty coffee is five dollars a cup, most would say this is an outrageous price to pay, yet millions of people pay the price daily. There are many factors to why this business became so successful despite its high prices.
Location being one of those factors. Starting from a small coffee shop in downtown Seattle, there are now currently numerous Starbucks locations in every major city. Airports, shopping malls, and Target stores often have Starbucks located within. The company has now expanded to Africa, South America, Asia, Europe, North America, Central America,Caribbean, and many more countries across the globe. The more locations they have, the more people see there iconic logo, and swarm in for the morning cup of joe.
Starbucks is not just pouring up any regular cup of coffee. They purchase and roast only high quality coffee beans hand picked from Latin America, Africa, and Asia-Pacific. Starbucks just this year purchased its own coffee farm, thus allowing them to experiment and in the future produce new bold flavors of coffee. Over the years the company has found ways to become Eco-Friendly. They have recycling units in their stores. They also produce numerous styles of coffee tumblers for sale, in hopes ...
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... pantry at Jefferson Edison Elementary School, in Davenport, Iowa on November 23, 2013. Many people do not realize that Starbucks company is involved in their community.
The once small coffee house in Seattle, Washington has now turned into the most prominent coffee company in the world. Some people would say a trip to Starbucks is a treat, others it has become a daily ritual. It was able to grow into such a successful company because of the experience they made for each customer that walked through their doors. Offering a variety of high quality coffees to people all over the world and giving them the home away from home atmosphere. By staying true to their company mission statement, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”, they were able to stand out more then any other company, and ultimately reach success.
The story of Starbucks coffee history begins in Seattle in 1971 when the first Starbucks opened at Pike Place Market, which is Seattle's and the Nation's oldest Farmer's Market. At this time the company was a local coffee roasting facility. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began right away to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and the beginning of coffee history should be one year later when Schulz traveled through Italy. He got inspired by the Italian coffee bar tradition to serve fresh brewed Espresso and Cappuccino. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle, named Il Giornale. (Wilson)
Starbucks, a coffee bean sales company did not have much of a marketing plan in place at its inception. Based in Seattle Washington the company began to sell coffee beans to espresso bars and upscale restaurants back in 1982. It took 11 years to progress to that level of production, they originally were a local store vendor at Pike Place Market. The director of marketing brought back the espresso bar idea from his travels in Milan. (Company Profile, 2015) The Pacific Northwest was filled with working class men and women that were drawn to the coffeehouse tradition brought in from Italy.
Every customer that is served is treated with utmost respect, while an equal care is given to the coffee and other merchandise – providing the recipient with superior quality the first time or they will gladly remake it. When customers enter the establishment they are welcomed with comfy chairs and a cozy, “nestled-at-home” feel – keeping the barren walls and cold atmosphere for other businesses. This environment yearns to be a place of unity – bringing people together, a study room for the burned out college student, or even a place to read the paper before work. Whatsoever the necessities may be, Starbucks provides the answer. For instance, for every bottle of Ethos Water that is sold, five cents is donated to the Ethos Water Fund to provide clean water to children who are unable to access it themselves. This fund has helped more than 500,000 people across the globe obtain clean water, hygiene and sanitation (Ethos Water Fund). Clearly, Starbucks believes in the necessity of humanity.
Starbucks is a worldwide coffee house series founded in the United States. Starbucks is one of the biggest coffee house company in the world with more than thirteen thousand stores situated in the US and more than twenty thousand stores in 62 countries.
When Starbucks started their target market were people who enjoyed coffee not just for the energy boost that they got from the caffeine, but people who enjoyed sitting down and drinking a well-prepared cup of coffee. Upon visiting Italy and falling in love with the coffee bars and the experience that they offered, Schultz envisioned a place between home and work where you could just sit and enjoy your coffee. Starbucks wanted to control their coffee from “raw green bean to the steaming cup” this meant that they had to talk with their farmers to make sure the quality was up to their standards. They
Before Starbucks became a prominent coffee company with 27,339 locations around the world, it was a tiny shop selling premium roasted coffee beans in Seattle, Washington. Three university professors from San Francisco began their journey at 1912 Pike Place, a miniature building located in the Pike Place Market. They derived the
Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...
As we know, Starbucks has made a name for itself making and selling coffee and specialty coffee drinks. It has made its biggest impression by becoming the espresso expert and public educator of how to make the perfect espresso; "Roasters" of the company are trained for one year.
Visit Starbucks.com and you enter a virtual world of delight. Consumers can “sample” over 30 blends of coffee; find Starbucks coffeehouse locations, or learn about Starbucks Hear Music®, where customers can “burn personalized CDs, use listening stations to explore musical recommendations, enjoy a handcrafted Starbucks® beverage, or surf the web at (a) T-Mobile Wi-Fi enabled coffee bar” (Starbucks, 2008). Starbucks uses their website to communicate with their consumers about their company’s mission, social responsibility, business ethnic and compliance, diversity relations and press releases. Consumers can even read about the latest “rumor responses” that Starbucks wants to clarify about misinformation regarding the company. From the “click” of a button you can shop for Starbucks merchandise or check the balance on your Starbucks Card, the Starbucks website has got their customers needs in mind.
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.
Serving as a social lubricant, Starbucks has offered people, exquisite, one of a kind coffee all over the world. Starting in Seattle, Washington back in 1971, it has expanded rapidly all over the world with more than 20,000 stores open today (Starbucks.com). The Starbucks locations offer hot and cold coffee beverages plus food items. While prices vary, Starbucks offers coffees anywhere from about $2 dollars to about $5. Their standard sizes are named in a different way, starting from a Tall, to a Grande, to a Venti and even a Trenti. Attracting customers by offering facilities like free Wi-Fi internet access, makes Starbucks a convenient social interaction restaurant. Some of the most compelling marketing strategies Starbucks offer to its customers is its warm atmosphere, environmentally friendly establishment, and good reputation.
The company was founded in 1971 in Seattle, when an English teacher Jerry Baldwin, a History teacher Zev Siegl, and a writer Gordon Bowker decided to open their own coffee shop. Now, Starbucks is the most successful coffee company in the world that serves coffee in 65 countries.
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...
"Whatever your culture, your values, your guiding principles, you have to take steps to inculcate them in the organization early in its life so that they can guide every decision, every hire, every strategic objective you set” (Schultz & Yang, 2007). That’s exactly what Howard Schultz, CEO of Starbucks, did when he first started with the company in 1982 (“Our Heritage,” 2011). The company’s solid business model of providing more than just a cup of coffee allowed it to flourish for over two decades. Then in 2008, Starbucks’ stock had plummeted and the company’s aggressive growth strategy led to the commoditization of this popular coffeehouse and its products. When Schultz saw this company become a diluted version of what he dreamed it would be, he decided to step up again as CEO (Koehn et al., 2008). Starbucks successfully developed and implemented a strategic plan to recreate the intimate coffee shop feeling.