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).
Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2005. It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries. Strategic planners have also proved the significance of their work force by providing benefits and implementing programs such as the ?Bea... ... middle of paper ... ...heir own locations and introduced their first co-located store in 1993. They introduced high-speed Internet access allowing customers to surf the web, conduct business or Instant Message their friends while enjoying their beverage and pastry.
The more locations they have, the more people see there iconic logo, and swarm in for the morning cup of joe. Starbucks is not just pouring up any regular cup of coffee. They purchase and roast only high quality coffee beans hand picked from Latin America, Africa, and Asia-Pacific. Starbucks just this year purchased its own coffee farm, thus allowing them to experiment and in the future produce new bold flavors of coffee. Over the years the company has found ways to become Eco-Friendly.
Starbucks also has a partnership with the Chinese government and local universities to grow coffee in Yunnan province. (Starbucks entry into China, p13) Starbucks also has its first entry into European coffee market. Starbucks has a partnership with Arla Foods as its licensed partner to manufacture, distribute and market the premium ice coffee products for supermarkets, convenience stores as well as Starbucks’ own coffee shops in Europe. Arla Food is one of the largest dairy companies in Europe and provides a highly developed distribution network for ready-to-drink products on key markets for Starbucks in Europe. As we see, Starbucks expands their distribution network by building up partner relationship with other organizations overseas.
As the west culture started to influence the market, they introduced Malaysia to a “cafe” concept. International coffee shops chains started to enter the Malaysia coffee shop market with the cafe concept applied. In fact, this concept seems to attract generation Y as the customer. Starbucks coffee is one of the most famous and successful international coffee shop chain in Malaysia. Starbucks was first opened in Seattle in the year of 1971.
That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began right away to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and the beginning of coffee history should be one year later when Schulz traveled through Italy. He got inspired by the Italian coffee bar tradition to serve fresh brewed Espresso and Cappuccino. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle, named Il Giornale.
This allowed Schultz to focus on Starbucks¡¦ global strategy. Starbucks operates and licenses more the 7,500 coffee shops in more than 30 countries. Coffee Industry In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding.
1. Starbucks, according to the information provided in the case, has an array of products generally associated with coffee products. Starbucks started in 1971 selling gourmet coffee. Then Starbucks expanded its product mix into different types of products lines, most likely, to better meet the needs and wants of a wider target market and thus hopefully increase sales. Starbucks new product lines included more than 30 blends and single-origin coffees, handcrafted espresso and blended beverages, Tazo teas, a line of bottled Frappauccio coffee drinks, and Starbucks DoubleShot.
Introduction Since its' 1992 IPO, Starbucks has continually focused on growth. Initially, the growth was targeted to enable Starbucks to achieve their goal of becoming the leading North American retailer of specialty coffee. The early success they achieved resulted in Starbucks expanding their original goal to that of becoming the most recognized and respected coffee brand in the world. By way of example, this case study focuses on a request by McDonalds to serve Starbucks coffee at its' restaurants in order to discuss the marketing strategy and the underlying competitive premise that Starbucks has adopted to achieve both of their goals. The study also describes the role the internet potentially can play in developing Starbucks as a global brand.