Starbucks opened its first store in 1971 in Seattle and has since grown to over 26,000 locations worldwide. While it initially struggled, CEO Howard Schultz recognized the opportunity for coffee houses and helped grow the company rapidly throughout the 1980s and 1990s. Starbucks now focuses on international expansion while facing competition from cheaper alternatives. To maintain its competitive advantage, Starbucks will need to focus on customization, international growth, and enhancing the customer experience through digital innovation.