The Success of Starbucks Essay

792 Words Oct 17th, 2013 4 Pages
The success of Starbucks
Starbucks was born in 1971 as a small coffee shop. With the management of Howard Schultz, Starbucks turned into a business legend and built a kingdom of coffee. It was dominate specialty-coffee brand in North America. By mid-2002, the company was serving 20 million unique consumers in more than 5000 stores all over the world. It developed at a very high speed. The gross profit of the company increased from 730.2 million to 1938.9 million in about 5 years (1998-2002). Its retail business expansion was also amazing. In 1998 there were 1755 Starbucks’ stores in North America while the numbers increased to 4574 in 2002. It was also true of its international expansion. There were only 131 stores in 1998. But in 2002
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So consumers would not be tried of the invariable choices. And the innovation was also strictly operated. The company also attached great importance to the partners’ acceptance. The products and the employees who made the products were equally important. The success of Frappuccino beverages was the best example on this point. The introduction of this highly boosted the sales and caused a new popularity. The bottled version of the beverage held 90% of the ready-to-drink coffee share.
The service innovation also made great contribution to Starbucks' success. One of the magic outcomes was the store-value card. It helped the company to earn money before selling any products. Less than one year, about 6 million cards were sold and initial activations and reloads had reached about $160 million in sale. What’s more, SVC also increased the frequencies of customer visits and reduced transaction times. Starbucks provided T-Mobile Hot Spot wireless Internet service which offered high-speed access to the Internet. It met the needs of today’s customers and made them stay longer in the store.

Current problems
Despite its excellent performance, Starbucks was not meeting expectations of customer satisfaction which shown by the recent marketing research. The declining satisfaction came along with the changing of Starbucks’ brand meaning and the changing of customers.
Starbucks defined its image as keeping the national

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