Starbucks Case Analysis

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Subject: Starbucks Case Analysis

Having been through the great expansion and the economic depression, Starbucks has become one of the most valuable brands in the world by its ability to immediately distinguish consumers’ needs and fulfill those needs with extraordinary services. In other words, Howard Schultz has made Starbucks the solution to consumers’ unsatisfied need, which gives the brand a strong positioning that not only benefits the company, but also creates customer value. However, as the rapid expansion goes on and growth opportunities emerge, Starbucks also runs the risk of attenuating its brand equity as a result.

In order to evaluate the acquisition of the coffee equipment company, a situation analysis is indispensible. Since the environment and the consumers change over years, it’s important for Starbucks to develop timely value to accommodate the changes, while strengthening its timeless value to sustain the brand in the long-term. Needless to say, Starbucks’ timeless value was built on its “third place” position, a distinctive point-of-difference when the consumption of coffee was declining in 1990s. It represented the situation that people were becoming much more stressed, so the need for people to have a place for drinking a good cup of coffee and conversing with others arised. The attributes that stem from the meaning of “third place,” such as the aroma, the decoration and the coffee culture, form the experience for consumers that make Starbucks so unique, which has represented its timeless value. The reason why Starbucks has built a successful brand resonance model is because it positioned itself based on those unique values and has been dedicated to bringing customers that experience. The motivation of ambitious expansion has been to increase the brand’s accessibility, which creates immense exposure that caters to the increasing demand of convenience; however, it has been undermining Starbucks’ positioning.

Positioning is so...
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