It is clear that Starbucks has enjoyed great success since it was founded 30 years ago. The company has been doing very well for the last 11 years with 5% or more store sales increase even after the post-9/11 recession. The only issue Starbucks seems to be facing is meeting customers’ expectations. Customer service can be down because Starbucks may have lost the connection between satisfying their customers and growing their business. Customer service can also be declining due to the time required to be served and employee attitude.
According to the exhibits shown in the case study it shows that the company has experiences huge growth both geographically and financially from 1998 – 2002 since during these times the net income more than tripled as well as the stores worldwide. Exhibits 3,4, and 5 show the payroll structure, income volume per location and product mix for North American company-operated stores. Exhibit 6 shows US retail coffee market predictions until 2005 years. It clearly shows changing in American’ coffee drinking style into specialty coffee. It is very important that Starbucks takes note of this as their main market is specialty coffee and their business stresses as big value proposition in creating an “experience” around the consumption of coffee, thus customer satisfaction is very important. After reviewing exhibit 10, it seems that “speed” may not be the most important issue driving customer satisfaction.
All the other exhibits show positive customer snapshot scores for North America stores with one other issue regarding product quality. Exhibit 8 shows that customers who first visited Starbucks five years ago have higher degree of education and a higher income level. Now customers do not see it as a brand of high value. This is an issue as Starbucks prides itself on “lifestyle” instead of just the coffee. Exhibit 10 shows factors driving “valued customer perception. From 34% of... [continues]
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