STARBUCKS STRATEGY

Starbucks Strategy

Starbucks Strategy

Introduction

Starbucks Corporation (publicly traded NASDAQ) is an international chain of coffee founded in Seattle, Washington. It is the leading coffee world's largest, with approximately 17,800 locations in 49 countries. Starbucks sells coffee prepared, drinks hot, and other drinks, plus snacks and some other products such as mugs and coffee beans. It also offers books, music CDs, and movies. The first store named Starbucks opened in Seattle, Washington in 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three, inspired by coffee entrepreneur Alfred Peet opened his first shop selling coffee beans and machines, located at 2000 Western Avenue, from 1971 to 1976. During the first year was Alfred Peet unique customers then began to buy green coffee beans from other suppliers. In 1977 the store moved to Pike Place (Belin 2007, 44).

The Starbucks Experience is based on product customization, ranging from the different combinations to choose and the way to serve the order. Also it offers value added services, being pioneers in providing free wireless network service to its customers. New Market Development, capturing from the more affluent audience willing to pay a higher coffee price competition, to the younger crowd or even one who does not drink coffee with the addition of its latest services. Brand Image adds attention to details and marketing activities aimed always to generate attraction for the mark by the consumer.

The entrepreneur Howard Schultz joined the company in 1982 , and after a trip to Milan , proposed to his partners to expand the sale of coffee beans, selling espresso and others, which was rejected by them for consider that this new activity would distract the original objective of the company, plus estimated that coffee was something to be prepared at home. Starbucks has a large international chain of coffee shops offering its customers coffee, desserts and products of pastry. In the United States of America is considered as a venue for young people, especially students and residents in large cities.

Corporate Strategy

Starbucks Corporation began its operation in 1985. Starbucks buys coffee beans and sells high quality coffee ready to drink. The company's mission is to establish Starbucks as one of the most recognized and respected worldwide. Currently, Starbucks is a multinational operating in countries located in U.S., Latin America, Europe, Asia and Australia. Starbucks stores are usually located at airports, malls, hotels and universities. For the evaluation of external factors with which Starbucks operates PESTEL analysis tool was used (Gillham 2000, 2).

Economy

The price of coffee depends on the balance of supply and demand, but because Brazil increased production in areas without risk of freezing and Vietnam began to be a major producer of coffee beans (It produced 84 000 tones of coffee in 1990 and 850 000 tones in 2002) the supply of coffee is impressively shot creating a situation that became known as the coffee crisis. This situation became a threat for companies that depend on the coffee bean as a raw ...