Starbucks case study
Roger Williams University
Gabelli School of Business
Business 100: Enterprise
Starbucks Case Study
Questions:
1. What is the problem that Christine Day identified within Starbucks?
The problem Christine day identified within Starbucks was that Starbucks were not always meeting their customers’ expectations in the area of customer satisfaction.
2. How has Starbucks differentiated itself from its competitors according to the founder’s vision?
According to the founders’ vision, his idea was to create “a chain of coffeehouses” that would become their “third place” after their home and work. Their third place consisting in a place where they can relax, be with friends or jut be by themselves. Schultz started Starbucks a private shop and after he made it public the net earning raises 50%. With already having over 5000 shops in the US, the company was opened about 3 shops daily.
3. What is Starbucks’ “value proposition”? Or, why would a consumer buy higher priced coffee at Starbucks?
Starbucks has three components that makes their costumers buy higher priced coffees; the first component is the coffee itself, believed to be the highest-quality coffee in the world. They also controlled as much of the supply chain as possible, working directly with the growers.
The second component was the service, or what the company calls “customer intimacy”. Senior Vice President, Jim Alling says that their goal is to create an enriching experience right when you walk by the front door. Some examples he stated were, recognizing the costumer or knowing what type of drink they usually order.
The third component was the atmosphere; they try to make the ambiance as pleasant as possible so the costumer wants to stay. They had lounge style seating for those who want to linger while drinking the “best coffee in the world”.
4. How does Starbucks deliver a quality experience to customers?
Some people ask them self how does Starbucks deliver a quality experience to
Gabelli School of Business
Business 100: Enterprise
Starbucks Case Study
Questions:
1. What is the problem that Christine Day identified within Starbucks?
The problem Christine day identified within Starbucks was that Starbucks were not always meeting their customers’ expectations in the area of customer satisfaction.
2. How has Starbucks differentiated itself from its competitors according to the founder’s vision?
According to the founders’ vision, his idea was to create “a chain of coffeehouses” that would become their “third place” after their home and work. Their third place consisting in a place where they can relax, be with friends or jut be by themselves. Schultz started Starbucks a private shop and after he made it public the net earning raises 50%. With already having over 5000 shops in the US, the company was opened about 3 shops daily.
3. What is Starbucks’ “value proposition”? Or, why would a consumer buy higher priced coffee at Starbucks?
Starbucks has three components that makes their costumers buy higher priced coffees; the first component is the coffee itself, believed to be the highest-quality coffee in the world. They also controlled as much of the supply chain as possible, working directly with the growers.
The second component was the service, or what the company calls “customer intimacy”. Senior Vice President, Jim Alling says that their goal is to create an enriching experience right when you walk by the front door. Some examples he stated were, recognizing the costumer or knowing what type of drink they usually order.
The third component was the atmosphere; they try to make the ambiance as pleasant as possible so the costumer wants to stay. They had lounge style seating for those who want to linger while drinking the “best coffee in the world”.
4. How does Starbucks deliver a quality experience to customers?
Some people ask them self how does Starbucks deliver a quality experience to