How has Starbucks grown their business? Starbucks has grown its business creating a great brand that not only attracted people to its products but that people could identify with. Starbucks mainly emphasized on creating outlets that whose design brought out a particular social culture as not only a coffee house but a place of connection. They did so by customizing the furniture the artwork and the music creating an atmosphere to suit coffee lovers. After developing a brand they emphasized on serving high quality, tasty and uniquely prepared coffee products, by using dark roasted coffee. Good customer service is promoted to encourage return customers which is maintained through provision of benefits to all employees. What led to Starbucks’ challenges? What mistakes did Starbucks make? Starbucks’ primary challenge was the rapid expansion which was considered reckless whereby 1,300 stores were opened each year. The move saw the stores open virtually everywhere, some of which were remitting minimal returns due to competition with other Starbucks in the area. At the end, it resulted in retrenchment and closing of some stores. The challenge was compounded by the mistake of venturing into new products, beverages and food items considered questionable. Starbucks is known for its quality coffee. Nevertheless, introduction of other products such as breakfast, sale of CDs and sandwiches made the company go off course and cause confusion to its customers. How do you recommend Starbucks move forward? What needs to be done? Starbucks can move forward by focusing primarily on the product that made the company successful and maintaining the existing stores as opposed to expanding. Introduction of other beverages and sandwiches made the stores look more as juice and tea shops as opposed to traditional coffee shops as they were meant. The coffee brand has been the most successful product for Starbucks, therefore concentrating on it in its marketing strategies and in the stores will promote its former glory, while focusing on quality and customer satisfaction. It means that other products such as the breakfast and other beverages are eliminated from the menu so that the foremost product is sold. What are the key difficulties with the “path forward” you recommend? Starbucks is widely known for coffee sale. Therefore, its attempt to introduce new products that were being sold and that were maintained are likely to falter over time as the primary product talks over resulting in the collapse of the products developed and the loss of customers who were gained primarily due to other products apart from coffee, which is disadvantageous for the business. Additionally, Starbucks’ reputation is of only a major coffee competitor. Henceforth, its attempt to venture into other business sectors if needed will be more difficult and slow for the company. How Starbucks might be able to pursue growth innovation Innovation is the lifeblood of an organization which makes ...

1. How has Starbucks grown their business?
Starbucks has grown its business creating a great brand
that not only attracted people to its products but that people
could identify with. Starbucks mainly emphasized on creating
outlets that whose design brought out a particular social culture
as not only a coffee house but a place of connection. They did
so by customizing the furniture the artwork and the music
creating an atmosphere to suit coffee lovers. After developing a
brand they emphasized on serving high quality, tasty and
uniquely prepared coffee products, by using dark roasted coffee.
Good customer service is promoted to encourage return
customers which is maintained through provision of benefits to
all employees.
What led to Starbucks’ challenges? What mistakes did
Starbucks make?
Starbucks’ primary challenge was the rapid expansion
which was considered reckless whereby 1,300 stores were
opened each year. The move saw the stores open virtually
everywhere, some of which were remitting minimal returns due
to competition with other Starbucks in the area. At the end, it
resulted in retrenchment and closing of some stores. The
challenge was compounded by the mistake of venturing into
new products, beverages and food items considered
questionable. Starbucks is known for its quality coffee.
Nevertheless, introduction of other products such as breakfast,
sale of CDs and sandwiches made the company go off course
and cause confusion to its customers.
How do you recommend Starbucks move forward? What needs
to be done?
Starbucks can move forward by focusing primarily on the
product that made the company successful and maintaining the
existing stores as opposed to expanding. Introduction of other
beverages and sandwiches made the stores look more as juice
and tea shops as opposed to traditional coffee shops as they

2. were meant. The coffee brand has been the most successful
product for Starbucks, therefore concentrating on it in its
marketing strategies and in the stores will promote its former
glory, while focusing on quality and customer satisfaction. It
means that other products such as the breakfast and other
beverages are eliminated from the menu so that the foremost
product is sold.
What are the key difficulties with the “path forward” you
recommend?
Starbucks is widely known for coffee sale. Therefore, its
attempt to introduce new products that were being sold and that
were maintained are likely to falter over time as the primary
product talks over resulting in the collapse of the products
developed and the loss of customers who were gained primarily
due to other products apart from coffee, which is
disadvantageous for the business. Additionally, Starbucks’
reputation is of only a major coffee competitor. Henceforth, its
attempt to venture into other business sectors if needed will be
more difficult and slow for the company.
How Starbucks might be able to pursue growth innovation
Innovation is the lifeblood of an organization which makes
it more likely to adapt and survive despite the changes in the
market. For Starbucks expansion into other countries apart
from the United States will ensure it promotes its products
while pushing the market. Additionally the use of internet and
creation of a website where the can build its customers, sell its
product at ease and to customers all over the world is vital.
Also, expansion through franchising the brand to other goods
and services manufacturers in different parts of the world create
more capabilities for the product.
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