Starbucks Nicole Marx American InterContinental University Abstract When the word coffee is said, many times the first thing that pops into a person’s head is Starbucks. Starbucks has become a household name and has been in business for over 40 years. They are constantly trying to get into new opportunities to branch out further into the marketplace as to reach more potential customers. Starbucks A person can’t go anywhere today without seeing Starbucks. There are coffee stores all over the world, Starbucks inside Target’s and military installations, to Frappuccino’s and teas sold in grocery stores and gas stations. History Starbucks has come a long ways since their first store opened in 1971 in Seattle. By 1988 Starbucks …show more content…
By using a SWOT analysis Starbucks can see where they are doing well, and where they could be improving. SWOT stands for Strength, Weakness, Opportunity, and Threat. (Marketline, 2016). Starbucks has grown so fast in 40 years it is easy to see the things that they are doing right. One of the strengths that Starbucks has is they have built strong customer connections through value-added services. Looking deeper into this, starbucks prides themselves on retaining their current customers and how they are able to attract new ones. They sell world-renowned coffee in so many flavors that meet many peoples demands. They have been a company that has focused on meeting their customers demands while offering other services other than coffee. (Marketline, 2016). One of the many things that Starbucks has added to their shops is free ad unlimited Wi-Fi in the US, Canada and some of their international markets. They also have branched out with their up-selling merchandise to include apparel and accessories. They also started in October of 2015 a pilot project called the “Green Apron Delivery” at the Empire State Building. This serviced allowed workers at the empire state building to order certain beverages and food and it would be delivered within 30 minutes. (Marketline,
Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. (Bramhall)
There are several factors that were the framework for Starbucks successes. One major factor was that they brought back the trend of coffee drinking. With this vibe established that they were able to charge a premium for every cup of coffee - everyone wanted to go to Starbucks! Along with the trend that was created, they had great customer loyalty, with their best customers visiting up to 18 times in one month. This customer loyalty was no mistake, as one of their mantras was to create an experience and always say yes to the customer. They really were striving to be the Ritz Carlton of coffee.
Starbucks is a corporation that offers specialty coffees, coffee beans, cold blended beverages, pastries, coffee related products and machines, and tea. Starbucks opened its first location in 1971 in Seattle. By the year 2000, Starbucks had over 3300 locations, and it is still growing.
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...
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).
To achieve the quest of improving the customer experience, they are providing the customers with extraordinary service, a friendly environment, and high-quality products. The customer’s experience with Starbucks has defined their visits with the saying, “one cup at a time, every day” to indulge their visits. This statement led the company to adopt their mission statement of, “To inspire and nurture the human spirit - one person, one cup and one neighborhood at a time” (Starbucks Corporation,
Furthermore, brand loyalty and Starbucks reward program is also a reason why customers are willing to pay their prices. According to Reyhle (2016), “customer loyalty isn’t what it used to be. In fact, research company Access Development reported that 79% of customers would take their business to a competitor within a week of experiencing poor customer service, while the estimated cost of customers switching their choice of businesses due to poor service is $1.6 trillion. Nevertheless, Starbucks, has managed to strengthen their customer loyalty in a world where customer sentiment is constantly shifting and consumers have more options than ever before of where to spend their money”
The structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear. Pick up any newspaper and you are likely to find an article about the coffee giant. Starbucks pledges a commitment to their over 172,000 partners (employees) and the community. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, 2008).
No ifs and buts about it, Starbucks has turned a simple product like coffee into a lifestyle. Coffee used to be only drunk in the mornings for people to get caffeine but now people are drinking coffee all times of the day and Starbucks is a big reason why. Starbucks has turned coffee into an enjoyable experience that anyone can have at any time of the day. When you go into Starbucks it’s not just about coffee, it is about an experience. The Starbucks experience has helped Starbucks distinguish it’s self from stores like Dunkin Donuts and has help Starbucks grow from one store in Seattle, to one of the biggest companies in the world with more than 15,000 stores in 50 countries. However, Starbucks rise to the top
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.
Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With it’s humble roots firmly planted in Seattle Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to tactical planning. It was through tactical planning that the management team behind Starbucks was able to be so wildly successful. By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee joint has become America’s most enjoyable place to get coffee.
Short for Strengths, Weaknesses, Opportunities and Threats, the SWOT analysis is a tool “commonly used in marketing and business in general as a method of identifying opposition for a new venture or strategy” (Goodrich, 2013). In using this tool, professionals are able to “identify all of the positive and negative elements that may affect any new proposed actions.” The SWOT analysis of Starbucks Coffee Company is conducted below in Table 1.
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,