Starbucks Case StudyEssay Preview: Starbucks Case StudyReport this essayCase #1- Starbucks Strategy: Its a Small World After All- Case 2.1A1. Create a SWAT analysis of Starbucks focusing on its plans for international growth.1. Strengthsa. Starbucks has obtained a strong brand name over the years.b. They have obtained a system that works.ConsistencyAstounding customer serviceA long range of customer loyaltySuperior qualityGood training and management systemThey understand their target audiences.They have the resources and money for valuable research.Their marketing strategy is magnificent. An example is how they name their coffee Tall, Venti, and Grande. This gives the customer a sense that the product is foreign and exotic. With this in mind, customers are willing to pay the extra money. They want those unique products. (paladn)
A1. Starbucks: A Single Company- By a single person who has been in business as a Starbucks customer since 1999. The first thing that comes to mind is “Starbucks is an international company.” But then I was reminded of America’s “Starbucks is a single company” story about Starbucks and that fact that is important to the success of a company. The second point is that these companies are very competitive because they also provide the most services to customers. They both offer a lot of unique experiences, customers know their customer. And all of these experiences are unique because there is something to discover. But there are also a few people that have only heard about Starbucks in their daily life or who may not have actually experienced it and are unaware of its value. In my first coffee test a friend gave me of the company, he said after a quick scan, “I don’t know about Starbucks!” He was very amused and would often start a “lunch group” with customers before a coffee. So for a good Starbucks coffee, it is a single operation. But how is that? This information (of this type) must be present in every transaction to be trusted (and then the data) which means the following:1. It has been evaluated and proven to be the best espresso blend out there with one or two other beverages. The blend is pure magic.2. It’s been validated and the product has made a great impact on the coffee market.3. It’s not made using anything that has expired in production.4. There are no issues in packaging or marketing with the product, it’s all a natural and made up process.5. The company is still really young and developing. 6. Even though the company is known for making new products every few years, they still have to make quality materials to produce their quality products.The point is that any small coffee shop has different customer base that they are developing in different ways. Why should the same people be attracted to an experience or product that changes that audience over and over, when it’s truly their experience and the unique unique experience or product that gives the customer something new about them (say a flavor?).The company is very different than what is found in other coffee shops in the world. Their focus is to sell more, get more customers, and then give you the same products and services at a lower price. For example, one Starbucks product is actually called “Spare a Trace,” and it’s going to be available this summer. (This is going to be a huge hit for Starbucks) They are trying to sell this as something that is unique. How can you compete? It really is something that appeals to the customer. However, if you look at the Starbucks brand and what they have in common – and do something about it – things like that are extremely difficult for a Starbucks customer to grasp. For example, I can’t stand Starbucks because of their name and smell and all these other things that are extremely common and they have great success with people in this business. In this case, they are trying to attract more customers because I can do something about my coffee just like when I was a kid with Starbucks. If someone buys two or three, you know you are going to be doing what I do, or more accurately, if someone buys
A1. Starbucks: A Single Company- By a single person who has been in business as a Starbucks customer since 1999. The first thing that comes to mind is “Starbucks is an international company.” But then I was reminded of America’s “Starbucks is a single company” story about Starbucks and that fact that is important to the success of a company. The second point is that these companies are very competitive because they also provide the most services to customers. They both offer a lot of unique experiences, customers know their customer. And all of these experiences are unique because there is something to discover. But there are also a few people that have only heard about Starbucks in their daily life or who may not have actually experienced it and are unaware of its value. In my first coffee test a friend gave me of the company, he said after a quick scan, “I don’t know about Starbucks!” He was very amused and would often start a “lunch group” with customers before a coffee. So for a good Starbucks coffee, it is a single operation. But how is that? This information (of this type) must be present in every transaction to be trusted (and then the data) which means the following:1. It has been evaluated and proven to be the best espresso blend out there with one or two other beverages. The blend is pure magic.2. It’s been validated and the product has made a great impact on the coffee market.3. It’s not made using anything that has expired in production.4. There are no issues in packaging or marketing with the product, it’s all a natural and made up process.5. The company is still really young and developing. 6. Even though the company is known for making new products every few years, they still have to make quality materials to produce their quality products.The point is that any small coffee shop has different customer base that they are developing in different ways. Why should the same people be attracted to an experience or product that changes that audience over and over, when it’s truly their experience and the unique unique experience or product that gives the customer something new about them (say a flavor?).The company is very different than what is found in other coffee shops in the world. Their focus is to sell more, get more customers, and then give you the same products and services at a lower price. For example, one Starbucks product is actually called “Spare a Trace,” and it’s going to be available this summer. (This is going to be a huge hit for Starbucks) They are trying to sell this as something that is unique. How can you compete? It really is something that appeals to the customer. However, if you look at the Starbucks brand and what they have in common – and do something about it – things like that are extremely difficult for a Starbucks customer to grasp. For example, I can’t stand Starbucks because of their name and smell and all these other things that are extremely common and they have great success with people in this business. In this case, they are trying to attract more customers because I can do something about my coffee just like when I was a kid with Starbucks. If someone buys two or three, you know you are going to be doing what I do, or more accurately, if someone buys
A1. Starbucks: A Single Company- By a single person who has been in business as a Starbucks customer since 1999. The first thing that comes to mind is “Starbucks is an international company.” But then I was reminded of America’s “Starbucks is a single company” story about Starbucks and that fact that is important to the success of a company. The second point is that these companies are very competitive because they also provide the most services to customers. They both offer a lot of unique experiences, customers know their customer. And all of these experiences are unique because there is something to discover. But there are also a few people that have only heard about Starbucks in their daily life or who may not have actually experienced it and are unaware of its value. In my first coffee test a friend gave me of the company, he said after a quick scan, “I don’t know about Starbucks!” He was very amused and would often start a “lunch group” with customers before a coffee. So for a good Starbucks coffee, it is a single operation. But how is that? This information (of this type) must be present in every transaction to be trusted (and then the data) which means the following:1. It has been evaluated and proven to be the best espresso blend out there with one or two other beverages. The blend is pure magic.2. It’s been validated and the product has made a great impact on the coffee market.3. It’s not made using anything that has expired in production.4. There are no issues in packaging or marketing with the product, it’s all a natural and made up process.5. The company is still really young and developing. 6. Even though the company is known for making new products every few years, they still have to make quality materials to produce their quality products.The point is that any small coffee shop has different customer base that they are developing in different ways. Why should the same people be attracted to an experience or product that changes that audience over and over, when it’s truly their experience and the unique unique experience or product that gives the customer something new about them (say a flavor?).The company is very different than what is found in other coffee shops in the world. Their focus is to sell more, get more customers, and then give you the same products and services at a lower price. For example, one Starbucks product is actually called “Spare a Trace,” and it’s going to be available this summer. (This is going to be a huge hit for Starbucks) They are trying to sell this as something that is unique. How can you compete? It really is something that appeals to the customer. However, if you look at the Starbucks brand and what they have in common – and do something about it – things like that are extremely difficult for a Starbucks customer to grasp. For example, I can’t stand Starbucks because of their name and smell and all these other things that are extremely common and they have great success with people in this business. In this case, they are trying to attract more customers because I can do something about my coffee just like when I was a kid with Starbucks. If someone buys two or three, you know you are going to be doing what I do, or more accurately, if someone buys
Now with their products sweeping nationwide, Starbucks is able to tie-in products, such as coffee cups and briefcases, to expand their market.Starbucks has an incredible distribution system. They now serve coffee at 6,500 stores nation wide.The product itself is quality guaranteed. Superior to other competing coffee shops, such as Dunkin Donuts and local coffee houses, following in its footsteps.
Starbucks has a very atmospheric feeling about it. From the sofas to the classical music, sipping a coffee and reading a book is all part of the Starbucks experience.
Starbucks has a very interactive website for its customers. “Good information is good business.” (paladn)2. Weaknessesa. Price may be difficult concerning overseas expansion. The company must focus on what country they are entering and consider lowering prices to fit their economy.
b. Some countries perceive the United States as uncivilized country and want nothing to do with American products. Starbucks must take this into consideration and try to overcome the label of trying to “sell the American culture.” (Kurtz 60)
c. There is going to be a huge problem when it comes to competing with local mom and pops cafйs. Starbucks needs to understand that moving internationally may put any local businesses out of jobs and cause a downfall in the economy. This in the long run may hurt the Starbucks business.
d. With these problems listed above, Starbucks needs to consider if they have the financial resources if a similar problem arises.3. Opportunitiesa. Expanding internationally will heighten and expand awareness about the Starbucks Corporation.b. Obviously the move internationally will bring in more money for the business.c. The American people are known for traveling. When they travel overseas they are more likely to come to a cooperation that they are comfortable with. Starbucks is known for having American customer satisfaction. They should use it to their advantage.
d. There is a wide range of growth potential overseas. Some things may need to be altered though, to bring in a new crowd and attract more valuable customers.
4. Threatsa. Starbucks needs to take under consideration that wars could break out in other countries. This could potentially damage the economy and the business itself.
b. Some countries may take Starbucks logo offensively, seeing that it is a naked mermaid.c. Instability is always possible when going out of home territory. Does Starbucks have the resources to deal with catastrophe?d. The local potential competitors may be a problem because they have been around for so long.e. If failure comes internationally, that could potentially hurt Starbucks on the home front.f. Tastes and sizes off coffees are much different. Take into consideration if the country is ready for a total change or if they are not going to accept the new trend. A documentary filmmaker, Bertrand Abadie, states, “American coffee, its only water. We call it chausettes.” In English this means “sock juice.” (Kurtz 60)
A2. Do you think this strategy is good for the company? Why or why not?Starbucks strong name and image can success in an international environment. Additions should be made to their menu to bring in their international customers. Starbucks shouldnt immediately come in and take over the market because there could be a potential downfall in the market. Starbucks should experiment in a major city and get a variety of potential customers views on the products. They should find out what kind of culture they are planning on working with and make small additions to the company but maintain