STARBUCKS

Starbucks

Can CEO Howard Schultz lead Starbucks to Reach 23 B in Three Years? If Yes, What Strategies Does He Need To Implement Successfully?

In-Depth the Background

The first Starbucks shop opened in Pike's Place Market in Seattle in 1971. A simple retailer of fine beans and blends as well as coffee-making equipment, it was named by owners Gordon Bowker and Gerald Baldwin after a character in Herman Melville's literary classic Moby Dick. (Mr Starbuck is first mate on Captain Ahab's ship, the Pequod. Despite the legend that has grown up around the naming of the store, there is no reference by Melville to Mr Starbuck being a particular fan of coffee). The romantic vision of early sea-born coffee traders also gave rise to the mermaid logo. For a decade it remained just a shop not a cafe. By 1982, there were six Starbucks outlets in Seattle, and the company had a profitable operation selling its coffee in bulk to upmarket restaurants (McRoskey, 2008). That year Howard Schultz joined as director of retail operations and marketing. On a business trip to Milan two years later he fell in love with the style and atmosphere of Italian espresso bars and tried persuade Bowker and Baldwin to open a coffee bar inside each Starbucks store. They declined the suggestion, but lent Schultz some money to start his own, which he named Il Giornale. This proved even more successful than Starbucks, and in 1987, Schultz bought out Bowker and Baldwin and merged his coffee shop concept into the Starbucks chain.

Analyze the Current Situation Using the SWOT Framework: A Discussion

Starbucks Coffee Company is the world's leading retailer and roaster of specialty coffee. Yet the company prefers to regard itself as something more than this. Starbucks isn't just a coffee shop; it markets itself as a lifestyle choice, a home away from home, an emotional experience contributed by the warmth, friendliness and convenience of the in-store environment, the smell and taste of the coffee, the attractive bustle of customers and the relaxing vibe of its background music.

Strengths

Starbucks serves up strong drinks and remains strong as the leader in the coffee industry market through product diversification, customer loyalty, and high visibility. Starbucks caters to the addictions and satisfies the needs of socioeconomic groups attempting to beat the daily grind. Got Milk? Starbucks does, and they put a spin on the famous marketing campaign to add calcium to the diet; they ...