Starbucks: an Example of a Successful Company Due to the Use of Information.
Starbucks is the leading retailer of specialty coffee beverages and beans and related food and merchandise.
Starbuck’s retail strategy, which was designed primarily to maintain loyalty and repeat business among its target market (upscale coffee drinkers) encompasses hiring and training knowledgeable counter servers, called baristas to educate customers about Starbucks’ specialty coffee drinks and associated products, and to provide customers with an opportunity to take a break from their busy lives in a relaxing atmosphere. The company has also entered some creative partnerships to put its cafes in Nordstrom and Barnes & Noble stores and serve its coffee …show more content…
The factors that existed in the environment that provided the opportunity for Starbucks to develop a new, successful retail chain begin with the insight that Howard Schultz had that the other players in the coffee market did not have. He realized that Americans lacked the opportunity to savor a good cup of coffee while engaging good conversation in a relaxed atmosphere. In 1987 he purchased Starbucks, because he was convinced after a trip to Italy that Americans would be enticed by Italian coffee house culture. Prior to that time, coffee consumption in the U.S. was steadily falling as the three major coffee manufacturers – Proctor & Gamble, Nestle, and Kraft – fought for market share in a stagnant market. They did so by decreasing the quality of the beans in their blends so that they could offer coupons and in-store promotions without negatively impacting their profits.
Starbucks owes its success to its employees. Due to their training, empowerment, benefits, and growth opportunities, Starbucks’ turnover is only 60 percent, considerably less than the 150 to 200 percent turnover at other firms in the food service business. Their employees are treated like partners, and their customers like stars. The payoff is what the Starbucks