This year, Starbucks has developed an energy espresso drink named double shot. They are also the only coffee suppliers of United Airlines' flights (Weinstein, Steve "The niche makers-, Progressive Grocer, 1997, Volume 76). This case study will look at some of the aspects that made this explosive growth possible for Starbucks Coffee Corporation and Starbucks Coffee International.
Analysis.
Product/Service.
From latte to espresso con panna, Sumatra to Tazoberry ®; Starbucks purchases, roasts and sells high quality whole bean coffees. They also produce rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of pastries, and coffee related equipment along with accessories in their retail stores. Additionally, they produce and sale a bottled Frappuccino ® coffee drink and a line of premium ice creams through a joint venture partnership. Starbucks also offers a line of premium teas produced by its wholly owned subsidiary, Tazo Tea Company. .
To expand the "Starbucks coffeehouse experience,"" Starbucks is also moving into the service business. It is now offering high speed wireless internet access service to all its customers. Starbucks, T-Mobile, and HP announced recently that "2,000 stores will have 802.11b high-speed wireless Internet access available for customer use by year-end 2002- (Bissonnette, Curtis "Coffee and a hotspot-, mpulse magazine 2002). Starbucks has also initiated a 6-month pilot in select London and Berlin locations.
Promotion.
Product promotion is focal point for Starbucks, the company has taken a three tier stance on it. The first tier is selling the "Starbucks coffeehouse experience- which is "making connections with the people and things that are important to us over a cup of coffee- (Schultz, Howard). Starbucks promotes a different type of atmosphere depending on the season. Summer is the time to advertise the iced drinks like Frappuccino ® while the winter is for coffee, espresso, and teas.
In the early eighties Howard Schultz came to Starbucks. During a business trip to Italy Howard got acquainted with traditions of preparation of espresso. ... In 1987, with support of local investors, Howard got Starbucks. In 1992 Starbucks became known and extremely successful company. ... That is why Starbucks has to extend its supplier network. ...
Starbucks was founded in 1971 in Seattle, WA by Jerry Baldwin, Zev Siegl, and Gordon Bowker. ... He truly understands the importance of ethics and awareness in business. ... Enron made several "partnerships" with companies it created, which were used to hide huge debts and losses on its stock market trading business. ... Business analyst Mark Kalinowski has predicted that within the next 2 decades, Starbucks will be worth more than McDonalds, which is currently valued at over $90 billion. ... Starbucks is truly a one of a kind company that other businesses should try to be like....
The company also sells its beans to restaurants, businesses, airlines, and hotels, and it offers mail-order and online catalogs. ... By 1982, this business had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. ... For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks" expansion. ... Starbucks grew to 26 stores by 1988. ... Like any other business organizations, Starbucks competes with other organizations, which are in the same business. ...
Baldwin told Schultz, "We don't manage the business to maximize anything other than the quality of the coffee." ... Schultz was struck by the business philosophy of these partners. ... Schultz joined Starbucks as director of retail operations and a business trip to Milan's famous coffee shops in 1983 opened Schultz's eyes to the rich tradition of the espresso beverage. ... Business Week's survey (2002) of the top global brands reported Starbucks as one of the fastest growing brands. ... Starbucks' store launches grew steadily more successful. ...
Starbucks not only sales coffee, but it also sells amazing deserts and items for drinking coffee such as Starbucks mugs. ... The Starbucks company has become a worldwide company. ... The idea of doing international business brought positive outcomes to the company. ... Since that year, the company has opened opportunities for foreign people to join the International Business Partnership. ... This year, Starbucks granted $ 15,000 to each country who won this year's Starbucks Special Reserve Winners. ...
Zev Siegal grew tired of the business and left. ... Schultz then met with Jerry Baldwin and Gordon Bowker and was stoked by their business philosophy. ... They feared that serving drinks would dilute the integrity of the business. ... The 150-store expansion easily exceeded the 1987 business plan prediction of 125. ... These agreements allow Starbucks to have sales in airlines, hotels, hospitals, universities, and other business locations....
The political environment of a country greatly affects its business activities. ... Because of this increase in price, Starbucks devised a new business strategy to purchase commodities at fixed prices. ... The trade relationship between countries can also greatly affect the business of Starbucks. ... Being such a large corporation, Starbucks has a responsibility towards the environment and must carry out all business activities in an ethical manner. ... The PESTLE analysis is used by Starbucks while devising new business strategies and updating current ones. ...
They had been exploiting technology to support for their business. ... What are the critical challenges of marketing for Starbucks? ... Moreover, Starbucks is facing more challenge than before. ... By purchasing companies such as Seattle's Best, XM Café, and Tazo Tea, Starbucks used a different brand name to get business in a different market niche. ... For instance, Starbucks business fail to operate in Australia, it informed that 61 stores had been closed in Australia. ...
After Howard Schultz joined Starbucks in 1982, he developed his vision and made Starbucks the global company that it is today. ... In 1984 he tested this concept in downtown Seattle, as the first Starbucks Caffe Latte was served with success (Starbucks, 2014). ... Starbucks also launched the, " first paper beverage cup made from post consumer recycled fiber," (Starbucks, 2014). ... Starbucks K-Cups is launched as well as the Verismo system, a premium single cup espresso machine, and Starbucks Refreshers. ... Starbucks is committed to doing business responsibility. ...
