The Commoditization of Starbucks

The Commoditization of Starbucks

Introduction

Starbucks is an American company for the sale of coffee and has a network of stores with the same name. Starbucks is the largest coffee company in the world, with a network of more than 19 thousand stores in 60 countries, including 12,781 in the U.S., 1,241 in Canada , 1,062 in Japan , 976 in the UK (at March 2012) and 60 in Russia. Starbucks sells espresso and other hot and cold drinks, coffee, hot and cold sandwiches, pastries, snacks and items such as mugs and tumblers. The company's headquarters is in Seattle, the State of Washington.

Discussion

In the struggle for European coffee lovers that unfolded between Starbucks and McDonald's, most analysts tipped to win the last network. In the first place because she can afford to keep prices lower than the competition (www.starbucks.com). In addition, McDonald's more available funds, which the company is spending on, network expansion and marketing. It should also take into account that many McCafé opened in existing restaurants of the network, which greatly reduces the cost of the task. This year, plans to McDonald's - the discovery of several hundred new McCafé outlets in Europe. Number of coffee shops around the world will reach about 1200 points. At the same time, Starbucks, on the contrary, turns plans for expansion in the region (www.starbucks.com). Especially as McDonald`s acting swiftly, capturing market shares in different regions, while Starbucks loiter. In 2005 he opened the first store in Milan McCafe, now there are 65, and Starbucks are still eyeing the Italian market. In addition, the McCafe prices below the Paris coffee cup espresso is $ 2 50 cents, while in a coffee shop Starbucks, it is 2 dollars 80 cents. However, McCafe is also present in all markets of the Old World. In the UK, where there are more than 700 coffee houses Starbucks, no McCafe. Moreover, open them and do not plan to. European franchisee McCafe attracts so that visitors do not just drop in for breakfast, but regular hours.

The reason that the company changed the leadership was that the company was suffering losses and needed to be revived in a way that they run in profits and provide the customers with the satisfaction that they always had. To make sure that this happens, the company revived the leadership and changed the structure of leadership. From the beginning, even when Starbucks was losing money, Schultz provides two benefits for all employees at Starbucks, even the employees working in the company on part-time employees. These benefits were unique at that time and are still unique in the United States: full stock options and health insurance (www.marketingmagazine.co.uk).

This helped the company in attracting talent and building a trusting relationship with their employees and teams. Schultz explained that the occupation that a person is working for should be something that has a personal value for everyone, not only for the entrepreneur or the owner of the ...