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Starbucks history essay
Starbucks development history
Introduction to starbucks
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Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items. Since its inception, the company has established itself as the premier purveyor of the world’s finest coffee. Safe for this, it has gained popularity for being the most aggressive retailer coffee house. The company has had such an impact to the world to develop a niche in the market that has seen the company transform coffee as a beverage to be viewed as a lifestyle accessory, more of a fashion icon (Starbucks.com). The main strategy of Starbucks has to develop the company and put up shops all over the globe offering fresh-brewed coffee. This they plan to achieve by maintaining the highest quality products whilst offering the same at a premium price. As earlier noted, Starbucks predominantly focuses its business on only coffee-related products as well as retail stores. The strategic approach adopted by Starbucks is more or less of a corporate level strategy based on theirs being a single business company. This corporate strategy has its core purpose to ensure that it retains their uncompromised growth principles whilst at the same time remains to be a purveyor of the world’s finest coffee in the world... ... middle of paper ... ...-hikes-drink-prices due-to-soaring-coffee-cost-sep-22-2010/ Rodenberg, J., Costa Coffee vs Starbucks. Business Intelligence. Retrieved from: http://www.rodenberg.nl/publications/publications/COSTA_COFFEE_vs_STARBUCKS.pdf Schultz, H., & Yang, D. J., 1999. Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time (p. 351) Stigler, G. J., 1958. The Economies of Scale. Journal of Law and Economics, 1, 54-71. Retrieved from http://www.jstor.org/stable/724882 Story, T. S., 1971. Starbucks Company Profile. Folklore. Vitez Osmond, 2011. eHow Contributor. Key Elements of a Market Analysis. Available at: http://www.ehow.com/about_5415382_key-elements-market-analysis.html Warwick-Ching, Lucy, 2007. Costa tops table of coffee outlets. Financial Times. Retrieved from: http://www.ft.com/cms/s/0/44580364-0cb7-11dc-a4dc-000b5df10621.html#axzz1LI8spN30
The book revealed why Starbucks is one of the fastest-growing companies in recent years. Starbucks ' story is endlessly fascinating because of the unusual way the company has built a global chain and a global brand, explains Joseph Michelli, a Colorado Springs, Colorado, consultant and author of The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary. Moe, CEO of ThinkEquity Partners in San Francisco and author of Finding the Next Starbucks: How to Identify and Invest in the Hot Stocks of Tomorrow, says Starbucks ' early leaders were also distinguished by their exceptionally highflying entrepreneurial visions. "What Starbucks does magnificently well is treat employees not as pawns, but as partners," says John Moore, an Austin, Texas, marketing consultant, former Starbucks marketer and author of Tribal Knowledge: Business Wisdom Brewed From the Grounds of
Starbucks is a coffee company that began in 1971 in Seattle, Washington. They own more than 24,000 retail stores in 70 countries (“Starbucks Company”). They offer an array of products from coffee to handcrafted beverages to fresh food. Starbucks believes in being a responsible company while participating in ethical sourcing and environmental stewardship. The company is an active user with sharing information on social media platforms like Instagram, Twitter, Facebook. They are on Twitter with 11.8 million followers and also on Instagram with 12.5 million followers. Starbucks is doing exceptional with their marketing strategies when compared to the followers of other known coffee companies. For example, Dunkin’ Donuts has 57.8K followers on
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
The company’s founder and CEO, Howard Schultz, has been successful in creating Starbucks into something that we didn’t really know we needed until we had it. He has meticulously crafted a brand for the company that adds a psychological value to its offerings. Thereby, when you buy a cup of coffee at Starbucks, you buy an experience. The somewhat quiet, not-so-rushed atmosphere along with dimmed ambience and friendly staff found at Starbucks’ stores add a feel-good factor to your purchase. As a result, people are willing to pay a premium for coffee at Starbucks even if McDonald’s were running a promotion offering free coffee. The premium prices translate to superior margins for its investors.
Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...
In 1971, the first Starbucks store opened in Seattle’s renowned Pike Place Market. In the beginning they made only one guarantee to their customers: Expect More Than Coffee (Starbucks, 2017). It is on that guarantee that they have built a connection with their customers that has solidified their success in a saturated market. Now they have more than 24,000 retail stores in 70 countries (Starbucks, 2017). Their extensive brand portfolio now includes the following: Starbucks Coffee, Seattle’s Best Coffee, Teavana, Tazo, Evolution Fresh, La Boulange, Ethos Water and Torrefazione Italia Coffee. In this report, I have made the choice to delimit this brand audit to only include the Starbucks flagship brand.
Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York: Rodale, 2011. N. pag. Print.
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
Shah, A. J., Hawk, T. F., & A, T. A. (2011). Starbucks' Global Quest in 2006: Is the Best Yet to Come. In A. A. Marcus, Management Strategy: Achieving Sustained Competitive Advantage (pp. c468-c495). New York: McGraw-Hill.
According to Investopedia website, “a technique that reduces risk by allocating investments among various financial instruments, industries and other categories is known as diversification. Diversification is the most important component of reaching long-term financial goals while minimizing risk” (“Investopedia”, 2011). “Fundamentally, this strategy is about creating new products with new product life cycles and making existing ones obsolete” (Olsen, n.d.). With diversification, Starbucks would be able to enter new markets with new products. By having a diversification strategy enforced, this will create a path for effective growth for the business. As with any company considering new products in new markets, there are risks associated with it and Starbucks would need to be prepared to respond accordingly.
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,
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).
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.
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.
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...