Starbucks Essay

6398 Words Jul 11th, 2011 26 Pages

Table of Contents


Organizational Goals

Symptoms of the Problem

Diagnosis of the Problem

SWOT Analysis

Recommendations I. Introduction:

In 1971, in Seattle, Washington, three entrepreneurs started the Starbucks Corporation. The primary business at this time was the selling of premium whole bean coffee in a single Seattle store. At the time, coffee consumption in the U.S. was on the decline and market dominance was established by the large supermarket brands. However, companies such as Starbucks, who began selling high quality specialty coffee, began to establish a following of loyal coffee enthusiasts. This niche market enabled Starbucks to expand into five stores that sold
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These three areas worked in combination to develop a winning recipe for success. These three key areas are as follows:
- Premium quality coffee that only used the finest, freshest, full bodied
Arabica beans that were ground on the premises.
- Responsive service where the servers were called ‘Baristas’ and the customers were called “guests”, and the Baristas role was to personalize the service for each and every customer and to make the visit special.
- The ambiance and friendly comfort of the store that attracted people to stay and consider Starbucks the “third place”.

This combination was known as the “Starbucks experience” and the synergy that was derived from this winning combination was the key to Starbucks expansion strategy and ultimate success. Starbucks embraced and billed itself as the “third place”. It was not home or the office, but a combination of the two and a place that provided busy professionals a place to relax or work or even both. This concept fundamentally changed the way Americans drank and looked at coffee.

II. Organizations Marketing Goals:

Starbucks strategic marketing goals from the beginning were not complex or unassuming in their origin. The organization had goals that although were very ambitious they were also clear and concise. The company wanted to achieve the following:
- To establish a national brand identity and to be the market leader in specialty coffee. In the

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