Starbucks is a global coffee company founded in 1971 in Seattle, Washington. It has over 20,000 stores across 62 countries. The company prioritizes quality coffee, a premium European coffee experience, environmental sustainability, and investing in innovation. Starbucks also views its employees as important partners. While Starbucks has experienced rapid global expansion, it faces challenges in maintaining its brand image and customer focus as it continues to grow. The company needs to balance expansion goals with sustaining exclusivity, product differentiation, infrastructure development, and employee satisfaction to continue its success.
2. HQ: Seattle, Washington, U.S.
CEO: Howard Schultz
Founders: Jerry Baldwin,
Gordon Bowker
Zev Siegl
Founded In: March 30,1971 in Seattle
Stores: 20,891 stores in 62 countries
(march 2013)
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6. Quality 1st Priority
Premium European Coffee
experience in USA
Being Green
Investing in Innovation
Employees as “PARTNERS”
& the most important assets
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10. 10
*Building Relationship With
Growers & exporters
*Checking on agricultural
conditions and yields
*Searching varieties & sources
*Secure adequate supply of quality
green coffee beans & to limit it
exposure to fluctuating coffee
prices in upcoming periods.
13. *Customization of drinks
caused tension between Product Quality and customer focus
Increased Menu Size
*Lacking of a strategic Marketing Group
*Little product differentiation
*Higher Price then main competitors
*Rapid Expansion
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16. Key problem; Maintaining a customer
focused brand image while continuing
Expansion.
Customer Satisfaction
Lost Sight of the consumer
Lost connection between customer &
growing Business
Employees Burnout
Service gap due to unhappy employees
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17. Controllable elements
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Price
Product
Promotion
Channel of Distribution
Uncontrollable elements
Political/ Legal Forces
Competitive Structure
Cultural Forces
19. 19
*Need to sustain its exclusivity.
*Too many Starbucks around, Question Arises Quality vs
Volume
*Choose Location After checking Feasibility.
*Need to refocus on product differentiation strategy
rather than expansion.
*Market penetration will not be a problem if starbuck
creates proper infrastructure.
*Look after Employee Satisfaction.
Started with name of Starbuck Coffee Tea & SpicesStar Buck was 1st to introduce Italian coffee house with premium coffee to American Market. In settle for every 9400 people there is one starbuck coffee shop.Target age group 16-27
Ethos Water: provide fresh drinking water to some countries in Africa, donate some of their profit to help people to get clean water.
Water conservation Recyclable glass usage
Starbuck card
Nocoffe product 1990
Coffee purchased from small farmers who cultivated in less then 3 hectares of land.
Marriott, Pepsi, united Airline, various local brands of many countriesComfortable setting to create positive & uplifting ExperienceInviting Store Ambience60 min Pre order, name would printed on the Coffee CupThere is one store for every 9400 people.Saving marketing cost due to word of mouth. SB cards cuts transaction time.
Rapid expansion was a he a risk for SB bcoz it makes less money on each overseas-store bcoz most of them ere operated with local partner.cEo says that Staarbuck is large enough to absorb these looses.
Guest are complaining that employees are wlcoming they are just serving coffee
Starbuck Discovery in japan 2005Cullture; launch 2 coffee coffee variation which is less sweet then their us counterpart, especially developed for asian peoples.
Low wages & dissatisfaction affecting services even itself. In 2001 one manager of atore in california refused the salary. He ws asking for overtime.