Essay on Starbucks Case Study

1117 Words Jul 27th, 2014 5 Pages
August 27th, 2013
Case Analysis #1: Starbucks Corporation, April 2012

Starbucks is one of the world’s most recognized and loved brands. It is known in most parts of the world, leading it to become the largest supplier of coffee on the planet! Although it seems like Starbucks has always been on top of its game, that is certainly not the case. A brief history on the company provides some insight into its strengths and weaknesses over the company’s twenty-six year existence. Starbucks was started by Howard Schultz, a man who once visited a coffee shop and realized that the coffee he was drinking there was superior to any coffee he had experienced in the past. His subsequent visit to Milan inspired him to open his own coffee bar called
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Starbucks also partakes in corporate social responsibility as a main part of its strategy, and they do this by receiving their coffee beans from ecologically and economically sustainable sources across the globe. Because Mr. Schulz has such a high opinion of Starbucks, another part of his strategy is to hire employees that will engage customers and put them in a happy state of mind while waiting for their coffee. This places Starbucks far ahead of their competitors, such as McDonalds or Dunkin Donuts, whose customer service is beyond lacking. Employee retention is a huge issue, especially in a world where things change before the blink of an eye, so Starbucks provides healthcare to their employees, which implanted trust in their hearts. Additionally, the layout of Starbucks locations is very relaxing and warm, giving customers the feeling of being out in the forests of the Pacific Northwest. It’s difficult, if not impossible, to find another large-scale chain store or restaurant that can create this beautiful ambiance.

Aside from the aforementioned strategies, Starbucks uses diversification to truly capture the entire market. It has a line of coffees that are sold in supermarkets and club warehouses, as well as a coffeemaker. Starbucks has also partnered with Visa to create a credit card that can give customers reward points for free beverages. Licensing is a strategy used by many corporations, and Starbucks is no exception. It has collaborated with PepsiCo

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