Case Study: Starbucks

1533 Words 7 Pages
Case Summary:

Over the years, Starbucks Inc. has risen to develop into the nation’s most popular coffee spot. The idea of Starbucks origins begins outside of the USA. Starbucks CEO and founder Howard Schultz, noticed during a trip to Italy that observed that coffee shops are very popular social leisure venues. He soon realized that Italians looked upon coffee shops as a social event. The Starbucks CEO made it his business to emulate that social event and bring that into the USA. This emulation turned Starbucks into the third most commonplace to attend besides home and the workplace. Internationally in 1987, Starbucks opened its first store in Vancouver, British Columbia. In today’s market, Starbucks has over 16,000 coffee shops in over 55
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has started companies in at least 60 different countries. As a result, the company took advantage of the opportunities that presented itself within the international markets. Moreover, lately Starbucks has shifted their focal point on using a more customization approach. One of Starbucks focal points is to broaden their approach so that consumers can get a chance to taste their various coffee options in international markets. Reaching out to the Chinese market is a great reference of that. The company is noted as accommodating coffee-free beverages within the Chinese market. Also, Starbucks also has Chinese influenced food commodities within their operations to keep positive relations with China. Starbucks is consistently looking to make any changes necessary to keep their international target market …show more content…
In America, the Italian culture collides with the traditional concepts of coffee. The various types of coffee drinks, cultural customs, and different tastes could possibly not connect well with the American culture. For example, Italians rarely drink cappuccino while eating dinner and breakfast. Many Americans consume cappuccino during breakfast and dinner. The cultural shift could indeed disturb sales for the company during those hours. Being able to outlaw cultural issues as such, Starbucks needs to cultivate suitable marketing and sales strategies to their various target audience. The company needs to exhibit the benefits of consuming coffee during and after each meal as a persuasive promotion. An alternative could be offering pricing promotions during various periods of the fiscal

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