Starbucks Case Study

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Starbucks Case Study


What factors accounted for the extraordinary success of Starbucks in the early 1990s?

Building a successful brand with multiple stores opening. Selling whole beans and premium priced coffee. They also new and understood their target market. Unlike many other coffee shops they sold the lifestyle around the coffee and made it an experience for their customers as apposed to it being just an addition to a donut in the morning. They made it a lifestyle choice and something to be desired as well as focusing very heavily on the customer service aspect of the industry. What was so compelling about Starbucks value proposition? What brand image did Starbucks develop during this period?

They created an experience around what they believed to be the highest quality coffee in the world. They created a great experience around a high quality product with great customer service. Starbucks “employees” partners are also very satisfied with their positions, which is what creates such a great atmosphere for the customer and enables Starbucks to retain their customers on a regular basis. In addition they control a far larger portion of the their supply chain than what any others had in the industry which enables them to maintain the high quality product of which the whole experience is surrounded on. Why have Starbucks’ customer satisfaction scores declined? Has the company service declined, or is it simply measuring satisfaction the wrong way?

I believe that the reason that Starbucks customer satisfaction had declined was because they had lost track of their goal and the reason they were successful in the first place. Starbucks started to expand and really started to focus on expansion and they just evolved too quickly. They were focused on expanding and lost track of the customer service and the experience that they were founded on. And the customers started to feel just that, customers felt as though Starbucks main concern was making a profit...
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