Starbucks Case Analysis Table of Contents I. Executive Summary II. Company Profile III. Marketing Analysis IV. Competition V. Company Product and Services VI. Recommendations/Conclusion I. Executive Summary In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000. II. Company Profile Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee. In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide. III. Marketing Analysis 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.
Starbucks Corporation is one of the world's largest coffee roaster, marketer, and retailer of coffee. In 1971, three entrepreneurs, Jordan Bowker, Zev Siegel, and Jerry Baldwin opened first Starbucks store in Seattle, WA. In 1982, Howard Schultz joined Starbucks as a marketing director. He came up with the idea to make Starbucks a coffee house chain but Starbucks founders rejected the idea and he left the company in 1985. Later, Schultz started his own coffee bar named “Il Giornale”. In a couple of years, he was able to buy Starbucks Corp. from its original owners. He renamed his coffee bars "Il Giornale" as Starbucks. In 1987, Starbucks opened its first store outside the Seattle in Vancouver and Chicago. In 1996, Starbucks opened its first international store in Tokyo, Japan. [1,2]
Starbucks in today’s date is the world’s largest coffee chain. The brand which was founded in 1971 has established itself as the world’s leading specialty coffee brand with its more than 13000 outlets in 39 countries. The company has had an impressive record of sales and growth also. Something that differentiates Starbucks from others is its coffee as well as the special Starbucks experience. Starbucks serves more than just coffee. It is also known for the relaxing ambience where the customers can relax and sip with their friends. Starbucks is famous for its genuine service, inviting atmosphere and of course superb coffee. The company is committed to quality and it is due to its commitment to quality that its product pricing is also premium. However, despite the premium prices of its products the brand is loved around the world by the customers for the quality of products that it serves.
Starbucks opens its first store in 1971 in Seattle. WA. From the very beginning it offered the coffee on highest standards to please customers. In year 1982 today’s CEO Howard Schultz joined Starbucks as a director of retail operations and marketing. Since that time the company started to grow rapidly. In just few years of operations more stores have been opened expanding a business around the country and around the world. Now, Starbucks has nearly 20,000 stores in 60 countries and it still growing opening more and more stores and moving into new countries. But the corporation is not only selling a coffee. When the company became more powerful and more valuable, Howard Schultz along with other board members and a president, started to get involved in all kinds of programs to make better coffee, but also to make the world better. These days a company recognizes itself as a part of the neighborhood it operates within.
Get ready, set, GROW!!! That really seemed to be Starbucks mission in life. From 1998 to 2002 they tripled the number of stores that they either operated or licensed. They wanted to penetrate every possible market and they seem to have been pretty successful at achieving this. Starbucks also had defined what they wanted to be when they grow up, in that they wanted to be the third place in a person’s life after their work and home. Starbucks created a unique gather spot for people and for its start targeted mostly affluent shoppers. Starbucks really felt that they were delivering the values of 1) Providing the highest quality coffee, 2) Creating a welcoming and customer focused experience, 3) Priding themselves in their unique ambient atmosphere. So Starbuck’s was not only trying to sell great coffee they were creating a unique experience in doing so.
Starbucks was created in 1971 as a single store in Seattle’s Pike Place Market as a retailer and roaster of whole beans, ground coffee, tea, and spices. In 1982, Starbucks appointed Howard Schultz as the director of retail operations and marketing. After visiting Italy in 1983, Schultz fascination with the Italian coffee bars inspired him to bring similar type of coffeehouses to the Seattle area. Schultz idea was to provide a place where customers can relax, enjoy coffee, and engage in conversations. After several years, Schultz decided to leave Starbucks and open his own coffee company called II Giornale that offered brewed coffee and espresso beverages made from Starbucks Arabica coffee beans. In 1987, Schultz acquired Starbucks with
In conclusion, Starbucks Coffee Company is an example of a firm whose success and profitability has been fueled by morally conscious business decisions and practices. Actually, Starbucks has remained successful by focusing on consumers, employees, and the environment. One of the major effects of these decisions and practices on the company is that they contribute to the improvement of its bottom line results. However, Starbucks needs to adopt measures that focus on consumers in a equal manner at it focuses on employees and the environment. These measures include developing a customer experience strategy and customizing marketing offers.
Starbucks Coffee Company was founded in 1971 in Seattle’s Pike Place Market (Starbucks Company Profile). The original name of the company was Starbucks Coffee, Tea and Spices, later changed to Starbucks Coffee Company. Starbucks was named after the first mate in Herman Melville’s Moby Dick is the world’s leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim. Worldwide, approximately 35 million customers visit a Starbucks coffeehouse each week (Starbucks Comapy Profile). The first founders of Starbucks were founded by English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market. The store originally focused more on the sale of beans and equipment than on selling prepared coffee. After that first year, they bought their beans direct from farmers before roasting them. The company remained small and regional for years and there was not much of a specialty coffee market nationwide. The original Starbucks location was at 2000 Western Avenue from 1971-1976. That store then moved to 1912 Pike Place where it is still open. During their first year of operation, they purchased green coffee beans then began buying directly from growers (Jerry Baldwin Bio).
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).
Starbucks traces its origins to a single store opened in 1971 in Pike Place Market, Seattle, WA. In 1982, Howard Shultz joined the Starbucks team. He traveled to Italy in 1983 and experienced the environment of its coffee bars. His love and appreciation of the Italian coffee bar setting motivated him to reproduce it in the United States. In 1987, Shultz gathered a group of investors and purchased the company. Over forty years since its humble beginnings, Starbucks has expanded to 62 countries with over 18,000 stores.
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.
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.
In March of 1971, Starbucks opened its first location in Seattle Washington’s Pike Place Market. The owners Jerry Baldwin, Zev Siegel, and Gordon Bowker had no intentions of serving coffee but a place to sell coffee beans and coffee machine equipment. After ten years of selling beans and machines, Howard Schultz was hired as Director of Retail Operations. He decided it was best to start selling and serving coffee. The owners had not been convinced on selling and serving coffee, so Howard decided to leave and start his own business called II Giornale (a chain of coffee bars) in 1986 (Coffee, n.d.).
The company believes that their best assets are its employees and they are the one of the most important factors in the success of the business. Starbucks New Zealand adopted the traditions from its international company that each employee is called
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...
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,