Starbucks Case Study In Responding Questions, Refer Case Study

PAGES
3
WORDS
927
Cite

Starbucks Case Study In responding questions, refer case study "Starbucks U.S.: Too Much Coffee Spilling All Over?" 1. Based information provided case, view Starbucks' business model (i.e. feel sound business fundamentals)? Substantiate response referencing (4) examples, ideally case, relevant business concepts.

Starbucks in U.S.: Too much coffee spilling all over?

Starbucks' business model

Starbucks' business model is to offer higher-than-average quality coffee at a relatively high price point. Its coffee is an 'affordable luxury.' It is not the cheapest coffee on the market or the most expensive but is positioned so that middle and upper middle-class consumers feel comfortable making frequent purchases. It offers a 'home away from home' to consumers who want to relax, do some work, and get away from the stresses of the office and home in a relaxed atmosphere (Jain 2009: 3-4). This social aspect of Starbucks was why it focused upon word-of-mouth advertising and used cities as its central hubs for expansion. Urban stores were presumed to be prominent enough to generate a great deal of foot traffic.

At the time, Starbucks was offering a unique product, an Italian coffee shop experience to a nation weaned on Folgers. Having a unique product is essential to survive in a competitive marketplace. The downside of the Starbucks approach, however, was that it was positioned in the 'middle range' of the market, neither high-end nor low-end, and middle income consumers are often very willing to cut out the 'affordable luxury' of a cappuccino...

...

Starbucks hoped its ethical orientation as a company as well as its quality would generate sustained consumer loyalty, and for a time this worked.
Q2. SWOT

Strengths: A high level of brand recognition; many established stores internationally; a strong company vision and ethos

Weaknesses: Over-saturation of many markets, declining quality of product, perceived high price and poor value for price of product

Opportunities: There are many developing markets full of new, middle class consumers, particularly in the Far and Near East, eager for American food experiences and 'affordable luxury' shopping.

Threats: Other, lower-cost chains in the U.S. are offering Frappuccino knockoffs and cheaper flavored and specialty coffee drinks.

Q3. Starbucks' approach to compensation

Starbucks offered complete health benefits and stock options to both its part and full-time employees from its inception (Jain 2009: 2-3). This was unprecedented in retail but has benefited Starbucks in a number of critical ways. First of all, given that Starbucks does not market its product based upon price but upon quality, it ensures that it can attract higher-quality staff to serve as baristas. Unlike McDonald's, baristas are responsible for the quality of the food, not simply pushing keys on a cash register. Starbucks is selling an 'experience' not merely coffee, and having well-trained and well-educated staff…

Sources Used in Documents:

Reference

Jain, S. (2009). Starbucks in U.S.: Too much coffee spilling all over. IBS-CDC.


Cite this Document:

"Starbucks Case Study In Responding Questions Refer" (2013, April 24) Retrieved April 26, 2024, from
https://www.paperdue.com/essay/starbucks-case-study-in-responding-questions-100684

"Starbucks Case Study In Responding Questions Refer" 24 April 2013. Web.26 April. 2024. <
https://www.paperdue.com/essay/starbucks-case-study-in-responding-questions-100684>

"Starbucks Case Study In Responding Questions Refer", 24 April 2013, Accessed.26 April. 2024,
https://www.paperdue.com/essay/starbucks-case-study-in-responding-questions-100684

Related Documents

A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally. Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their

Other pertained to the consumer's preferred method of going to the Starbucks, such as whether the consumer usually patronized the same Starbucks; frequency of patronization; preference for taking out beverages vs. eating in; and the usual size of the consumer's beverage. Finally, more subjective responses were requested, such as whether the store's customer service was good and the prices were fair. Classification of findings Findings were classified on a nominal basis,

Pacific Brands -- 'Pacific Brands responds environmental forces (takes a hammering)', page 55-7 text book. (Management: Foundations applications, 1st Asia-Pacific Edition.) REPORT OBJECTIVES you expected address objectives report Pacific Brands: Competition and multicultural marketing in the apparel industry Pacific Brands is an Australia-based apparel company located in an increasingly competitive industry: apparel. Rival companies operating on a lower cost model are biting at the Australian manufacturer's proverbial heels. "With the elimination

Managing All Stakeholders in the Context of a Merger Process Review of the Relevant Literature Types of Mergers Identifying All Stakeholders in a Given Business Strategic Market Factors Driving Merger Activity Selection Process for Merger Candidates Summary, Conclusion, and Recommendations The Challenge of Managing All Stakeholders in the Context of a Merger Process Mergers and acquisitions became central features of organizational life in the last part of the 20th century, particularly as organizations seek to establish and

Aloud or in Writing, Making
PAGES 55 WORDS 17261

Companies such as XYZ Widget Corporation are well situated to take advantage of burgeoning markets in developing nations, particularly in Asia and Africa. 2. XYZ can grow its business by expanding its operations to certain developing nations in ways that profit the company as well as the impoverished regions that are involved, particularly when marketing efforts are coordinated with nongovernmental organizations operating in the region. 3. Several constraints and challenges must

As it has been mentioned throughout the previous sections, the literature review represents the research conducted through secondary sources. The information is divided into six distinct sub-sections as follows: 2.1. Consumer behaviour 2.2. Maslow's hierarchy of needs 2.3. The product brand 2.4. Elements in the coffee purchase decision 2.5. The coffee industry and the coffee market in Thailand 2.6. The ability of advertising and marketing to stimulate coffee purchase 2.1. Consumer behaviour Customer behaviour can be understood