Globalization Of Starbucks

Sometimes, brands will stray away from its core focus that garnered them success. Consequently, this is what happened to Starbucks. According to Starbucks (2015), “By 1992 Starbucks had opened 165 stores on the West Coast. Furthermore, the company rapidly added other stores in such countries as the United Kingdom, Turkey, Saudi Arabia, India, and France. Starbucks also expanded its product line with brewed teas and Frappuccino, a cold blended beverage that could be ordered with or without coffee. They even made cups on which selections could be marked and systematized abbreviations for each selection. Overall, by 2008 there were more than 16,000 Starbucks locations worldwide. Despite net revenues of more than $10 billion dollars, the company

Furthermore, despite the fact that Starbucks was a profitable company, management decided to start aggressively expanding its location and services. For example, Starbucks added more complicated drinks to the menu; opening new stores, introducing new products at the same time and started licensing the Starbucks brand. Additionally, according to Ferrell & Hartline (2014), Starbucks decided to go into the music and magazine industry. Then, began, becoming more akin to a fast food drive through restaurant, than the coffee shop it set out to be. As a result, of these actions Starbucks brand became

Meanwhile, Starbucks competitors started realizing the profitability of specialized coffee, and started offering it at half the price. More importantly, customers, are fickle creatures, once Starbucks began to veer away from its core, customers began to veer away from it. Customers, no longer felt as if Starbucks was that home away from home café, the menu became complicated. Furthermore, food was added to the menu, and Starbucks began to feel similar to a McDonald 's. As a result, when customers begin to feel like a brand is no longer being truthful about who it is, they tend to go elsewhere. Luckily, Starbucks, realizing the error of their ways, rehired Howard Schultz as CEO. Ferrell & Hartline (2014) states that, “Schultz came back determined to restore Starbucks’ cachet as a premier brand: “I came back because it’s personal; I came back because I love this company and our people and feel a deep sense of responsibility to 200,000 people and their families. Consequently, Schultz himself recognized that it would not be a quick fix and that choices would not be easy”