Starbucks Competing In A Global Market Essay

Great Essays
Revised April 7, 2003

Starbucks Corporation: Competing in a Global Market
Starbucks Corporation is a Seattle, Washington-based coffee company. It buys, roasts, and sells whole bean specialty coffees and coffee drinks through an international chain of retail outlets. From its beginnings as a seller of packaged, premium specialty coffees, Starbucks has evolved into a firm known for its coffeehouses, where people can purchase beverages and food items as well as packaged whole bean and ground coffee. Starbucks is credited with changing the way Americans--and people around the world--view and consume coffee, and its success has attracted global attention. Starbucks has consistently been one of the fastest growing companies in the United States.
…show more content…
They are encouraged to think of themselves as partners in the business. Schultz believes that happy employees are the key to competitiveness and growth. We can't achieve our strategic objectives without a work force of people who are immersed in the same commitment as management. Our only sustainable advantage is the quality of our work force. We're building a national retail company by creating pride in--and stake in--the outcome of our labor.9

This Colombian coffee bean crop is very small and grows only in the high regions of the Cordillera mountain range. For years, the Narino beans were guarded zealously by Western Europeans, who prized their colorful and complex flavor. It was usually used for upgrading blends. Starbucks was determined to make them available for the first time as a pure varietal. This required breaking Western Europe's monopoly over the beans by convincing the Colombian growers that it intended to use "the best beans for a higher purpose." 8 The Canada Newswire, March 1, 1993. 9 Inc., January,
…show more content…
This package is reviewed by a number of functional units--operations, finance, and real estate--within the International Group. Fourth, we move into the design phase, which is done in Seattle using information provided by the partner. Next we negotiate the lease with landlord and initiate the construction when the appropriate permits are obtained. Finally, we turn over the store to operations. The whole process takes about 13-16 weeks from start to finish. Establishing Starbucks as a Global Brand Based on the success in Japan and other locations, Schultz’s goal is for Starbucks to have a ubiquitous image as one of the most respected brands in the world. He notes: Whenever we see the reception we're getting in markets in places such as China, the Philippines, Malaysia, the U.K., and most recently Spain and Germany, we recognize that the growth potential for the company [overseas] is very significant. We want to accelerate that growth, maintain our leadership position, and, ultimately, become one of the most respected brands in the world.22 Since its early foray into the Japanese market, the pace of international expansion has picked up significantly. In 1998, Starbucks acquired Seattle Coffee Company in the United Kingdom, a chain with more than 38 retail locations. That same year, it opened stores in Taiwan, Thailand, New Zealand, and Malaysia. In 1999, Starbucks

Related Documents

  • Improved Essays

    Whenever one asks people why they like Starbucks, the first idea that pops into their mind is their coffee. Most people say something along the lines of, “it isn’t just coffee, it’s gourmet.” But the new question is if its worth it to pay the price of their coffee. Starbucks takes a simple product, coffee, and turns it into a “lifestyle.” One is not just buying a coffee; one buys an “experience.” More importantly, Starbucks has generated a community that is global, which is why they have succeeded in the market even though their prices are extremely high. For example, Starbucks has the…

    • 1080 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    From the moment you enter the store to the very last drop of your coffees, it is a must that customers feel the uniqueness of enjoying their Starbucks coffee experience. Despite their quality of products and their excellent customer services, Starbucks Coffee Company has been known to create smart strategic partnerships that demonstrate the way to grow your business is to partner smart. From the previous history timeline we can see that every year Starbucks managed to increase their stores to all over the world. And one of the most important strategies to every business is innovation. Through the years, the Starbucks Coffee Company has been known to create innovative ideas to add to their products or services.…

    • 1889 Words
    • 8 Pages
    Great Essays
  • Decent Essays

    Most people jump start each morning with warm cup of coffee. Coffee is a drug that most Americans feel that they need to have every single day to get by, I consider myself one of those people. “The Best Coffee for the Best YOU!”, a slogan that persuades the audience that Starbucks coffee is the best money can buy. Starbucks prides itself in brewing the best coffee in America and across the world. Considering the fact that there is a total of 22,557 Starbucks stores in the world, 12,521 of them being in the United States, this could be a true statement.…

    • 903 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    However Buzzing Beans Coffee Co. is different from other coffee shops, and the shop differentiates itself with very high quality products at a reasonable price and pairing it with unparalleled customer service. The coffee is brewed in-house and the beans are cooked in a very special facility and the process is a well-kept secret. The beans are sourced from all parts of the world and are only from the most exotic places on the world. This is a big factor that differentiates us from other coffee companies. All mugs are hand made and tested for stability and uniqueness.…

    • 1824 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Lots of survey respondents agreed that Starbucks ’primary goal was making money and expanding stores. Although the company initially aimed to meet all standards set through value proposition. The image of the brand changed from customers’ perspective. In the beginning, the idea was to build a chain of coffee stores known as America’s “third place”, a place where you could relax, enjoy and be separate from home and work. The established customers were purchasing a cup of coffee for the uplifting service experience and upscale atmosphere, but now Starbucks was not much different.…

    • 994 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Starbucks introduced coffee with hormone free milk which insisted its suppliers to supply organic milk only. Baxi, Mengnui and Dean Foods are some of its suppliers who had to work on this. (Shares.telegraph.co.uk, 2006) It can be observed that America’s supporting industries competed to provide raw materials to its firm for its innovation in rise of consumer needs. This kind of innovation gets highlighted in the international scenario and gains the competitive advantage in…

    • 992 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    The above-mentioned functional activities are the reason why Starbucks thrive and stay competitive because they knew what their customers want and need: coffee and adjacent products that complements their coffee and retailing the same coffee beans, coffee machines and other products they used in making their drinks. Does Starbucks care for their customers and financial needs? Not only Starbucks served best coffee and drinks to their customers, they are also known to be responsive to their customers need and want, that is why they charge premium for their drinks and coffee. This above-statement is reinforced in our textbook that says, “the more desired product attributes a company’s value chain builds into its products, the higher the price that must be charged to cover the costs of developing and making the product” (Jones and George 278). Based on the above-mentioned, we can say that Starbucks really care for their customers, but how about the premium price they charge for their drinks?…

    • 800 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Starbucks has taken people away from the everyday hustle and bustle. Just as Starbucks connects with their customers, they value their employees, society and environment as well. Starbuck does this by sharing its economic success by supporting educational, health, and social service projects. The most important Starbucks contribution is to its coffee growers. Starbucks has the money to pay its coffee farmers, who in turns can uses traditional methods of farming, which helps preserve tropical forest.…

    • 1019 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Starbucks Success

    • 761 Words
    • 4 Pages

    Success and complexities: This was a break through and the drink became extremely popular. The number of customers increased in summers and this drink became a major contributor to the overall sales of Starbucks. In April 1995, in all 550 Starbucks stores Frappuccino was first offered. Transformational Change: Seeing the success of Starbucks, many other fast food restaurants started getting into the coffee business. Starbucks started facing immense competitions.…

    • 761 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    As of 2014, Starbucks Corporation has met 96% of this goal. Furthermore, Starbucks opened its first Farmer Support Center in San Jose, Costa Rica in 2004 in order to expand their high-quality standards to the root of their business; beginning with the farmer cooperative. Since then, they have established several other support, conservation, and agronomy centers all over the coffee producing regions of the world. These centers aid in improving farming and coffee quality, developing sustainable farming practices and encouraging long-term health and stability with an overall intention to reduce the corporate and subsidiary effect on climate change. Additionally, Starbucks has steadily increased the amount of funds made available for farmer loans in order to encourage and aid the individual farmer and cooperative to participate in Starbucks standards.…

    • 712 Words
    • 3 Pages
    Improved Essays

Related Topics