Starbucks Case
Starbucks Case Study
1. Starbucks serves what many would consider a basic commodity-- coffee. As a commodity, traditional management wisdom would dictate that vendor selection would be based upon price; the vendor with the lowest price typically earns the business. How did Howard Schwartz transform Starbucks from a shop that "specialized in selling whole arabica beans to a niche market of coffee purists" into an "upscale cultural phenomenon" (p. 2)? Be certain to identify Starbucks ' 'service vision or concept ' and 'service strategy ' under Schwartz ' leadership.
The concept of Starbucks goes far beyond being a coffeehouse or coffee brand. Howard Schwartz, who wanted to take the experience of an Italian—specifically, Milan— espresso bar to every corner of every city block in the world. The key concept of Howard is making Starbucks become America’s “third place.” Because people used to thinking that coffee shop is a place that orders a cup of coffee and leave. Then, Starbucks defines them self as a place that people can escape, reflect, read, chat, or listen in a nice environment with a cup of coffee. It changes Americans’ usual life between home and work and back again. Starbucks not only offering customers good quality coffee, but also motivating a new life mode – coffee shops social experiences.
In order to qualify the better experiences for customers, Starbucks provides free wife, music and good environment. Also, except coffee, Starbucks brings special salad, sandwich in.
The service strategies including service profit chain, customer relationships, satisfying employees, low employees turn-over, good employee training, innovation, performance evaluation and smart partnership. service profit chain: Improving the speed-of service by upgrading machines and add more labors. good employee training: Providing hard skills and soft skills training. The training both raises the basic coffee making knowledge and customer service technique.
1. Starbucks serves what many would consider a basic commodity-- coffee. As a commodity, traditional management wisdom would dictate that vendor selection would be based upon price; the vendor with the lowest price typically earns the business. How did Howard Schwartz transform Starbucks from a shop that "specialized in selling whole arabica beans to a niche market of coffee purists" into an "upscale cultural phenomenon" (p. 2)? Be certain to identify Starbucks ' 'service vision or concept ' and 'service strategy ' under Schwartz ' leadership.
The concept of Starbucks goes far beyond being a coffeehouse or coffee brand. Howard Schwartz, who wanted to take the experience of an Italian—specifically, Milan— espresso bar to every corner of every city block in the world. The key concept of Howard is making Starbucks become America’s “third place.” Because people used to thinking that coffee shop is a place that orders a cup of coffee and leave. Then, Starbucks defines them self as a place that people can escape, reflect, read, chat, or listen in a nice environment with a cup of coffee. It changes Americans’ usual life between home and work and back again. Starbucks not only offering customers good quality coffee, but also motivating a new life mode – coffee shops social experiences.
In order to qualify the better experiences for customers, Starbucks provides free wife, music and good environment. Also, except coffee, Starbucks brings special salad, sandwich in.
The service strategies including service profit chain, customer relationships, satisfying employees, low employees turn-over, good employee training, innovation, performance evaluation and smart partnership. service profit chain: Improving the speed-of service by upgrading machines and add more labors. good employee training: Providing hard skills and soft skills training. The training both raises the basic coffee making knowledge and customer service technique.