Verified Document

Starbucks Case Analysis Case: Starbucks Five Highly Essay

STARBUCKS Case analysis

Case: Starbucks

Five Highly Relevant Facts

After showing swift initial growth, Starbucks' share price declined 75% within two years.

The strategy adopted by the CEO to address this problem was to radically cut back the company's U.S. expansion and focus on the quality of Starbucks' coffee and customer service rather than increasing the quantity of new stores.

Although the global recession had an impact on Starbucks' revenue, there were deeper and more long-standing concerns about over-expansion and brand dilution due to excessive store density in urban areas.

This has been created by the 'cluster' strategy of expansion favored earlier in the store's growth history. Starbucks is now expanding more slowly and also focusing on its international strategies country-by-country.

Starbucks is diversifying its in-house coffee offerings and its supermarket coffees (including instant coffee),...

It is not necessary to drink coffee at Starbucks' price point, even though the coffee is not really high-priced enough to be a traditional luxury good. Still, Starbucks must convey additional value to justify the purchase of a beverage.
How can Starbucks compete with the higher-end coffee offered by lower-priced chains such as McDonald's and Starbucks?

How can Starbucks use its mission of corporate responsibility to build and sustain its brand image?

The Firm's Core Competence

Providing coffee perceived to be of high quality, but not so expensive middle-class customers cannot afford it

Providing an in-store 'experience' that is pleasurable, including the smell of the coffee

Consistency and reliability of product

Employees that are knowledgeable about…

Cite this Document:
Copy Bibliography Citation

Related Documents

Starbucks Marketing Analysis Along the
Words: 5654 Length: 20 Document Type: Proposal

These refer to the characteristics of the political and regulatory environment (P), the economic environment (E), the socio-cultural environment and finally, the technological environment. The analysis of the climate in which an organization activates is also known as the PEST analysis. 4.1 Company Product Line Starbucks offers a wide selection of coffee-based beverages, with both caffeine and without caffeine. Aside their coffee beverages, they also offer whole-bean coffees, food items and coffee-related

Starbucks Barista Job Description to Provide a
Words: 494 Length: 2 Document Type: Case Study

Starbucks Barista Job Description to provide a high level of customer service while taking orders and preparing food and beverages to the customer's specifications (Logario, 2010). Task Performance -- operating cash register, taking orders, operating different beverage production machines, light food preparation, cleaning as required. All tasks must be performed to specifications. Service Performance -- All tasks must be performed with a high level of energy and enthusiasm. Customer requests must be addressed

Starbucks' Human Resource Management Policies and the
Words: 3854 Length: 15 Document Type: Essay

Starbucks' Human Resource Management Policies and the Growth Challenge In recent years, there has been much interest in the notion of "high commitment" human resource management (HRM). The high commitment HRM is focused on developing self-regulated behavior among employees that is based on mutual trust rather than external sanctions and pressures. Considering this premise, this paper provides a review of the relevant peer-reviewed, scholarly and organizational. literature concerning the advantages of

Starbucks Operates in the Quick
Words: 4842 Length: 18 Document Type: Term Paper

However, the company has in general enjoyed success overseas and as a result international sales now account for 27% of operating income (2010 Starbucks Annual Report). The international division remains a key source for growth at Starbucks, in particular the Chinese market, where Starbucks has enjoyed considerable success and now sits at over 500 stores. The company struggled in the mid-2000s due to two main factors. The first was the

Starbucks Case Analysis What Factors Accounted for
Words: 1424 Length: 3 Document Type: Essay

Starbucks Case Analysis What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? Many factors accounted for the extra-ordinary success of the Starbucks in the early 1990's. The Starbucks nearly wanted to be the leading branding company for the coffee all through the world. For sure they nearly owned one-third of

Starbucks in India
Words: 2712 Length: 9 Document Type: Business Plan

Starbucks in India Identifying Global Opportunities Global Business Opportunities Starbucks is a global retailer of coffee, and is seeking new growth markets, since its largest markets (U.S., Canada, UK) are all mature. The company has nearly 20,000 stores (2011 Annual Report). The company has premium positioning in the market with its brand, logo and patents providing key intellectual property to expand globally. Potential Markets When looking for potential markets, Starbucks seeks the opportunity to license

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now