When you are sitting in the Starbucks and look around, you will see this scene:
Full of laptop computers and iPads
Executives replying their emails
Students doing their assignments
Business people discussing their business activities
The environment of Starbucks is unique when we think about general coffee shops. So there were some unfilled customer needs before Starbucks established in the US coffee shop market.
Brand and reputation
Specialty roasting and brewing（taste）
Investing in advertising
The Starbucks magic is the strategic position which taken by an organization to gain competitive advantages at present and in the future. Starbucks changed their goals from products to services and then to experience. The experiences are include sensory /cultural/social.
Foremost among the position changing is the company's focus on a particular segment of the market. Starbucks has established personal relationship with its target customers. Its coffee shops are designed to have a cool, cozy feeling. So the firm's aim is to establish the image of their coffeehouse as the 'Third Place".
Undeniably, Starbucks started its history as a coffee company. But it has successfully evolved to keep up with the changes in how people work and socialize. Starbucks understands customers' needs, and actually evolve its business around better customer experience.
This improvement focused on the Schultz's idea of creating a "third place": somewhere other than home and work where people could engage socially amidst the shared experience of drinking good coffee.
According to Porter (1998a), there are three basic strategies a company can use to leverage itself in an industry; these are cost leadership, differentiation and focus. Cost leadership involves the strategy of producing low-cost but high quality products and reducing operational costs at...