Preview

Starbucks Case Study

Good Essays
Open Document
Open Document
5076 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Case Study
Starbucks Case Study [pic]
Overview

First Starbucks was a Private Company, from its inception in 1971, to it 's initial public offering in 1992. We believe that there since the beginning, Starbucks strategy has been one of growth. They have demonstrated all dimensions of a growth strategy: Internationalization in expanding into new countries and the global market. It has shown concentration in being creative and relying on it 's core competency of making high quality coffee and coffee equipment to develop new products and markets. Horizontal Integration has been evident in the many strategic acquisitions, partnerships, and joint ventures. Vertical Integration has been another key success factor as Starbucks Corporation has integrated backwards in opening coffee roasting plants, and forwards in controlling the distribution of it 's many products. This growth has taken it from a single store in Pikes Place Market in Seattle, to a worldwide company with sales of over $2.1 Billion and operations in almost thirty countries, in just 21 short years.

Time line

■ 1971 – First Starbucks coffee shop opens in Seattle’s Pike Place Market – coffee bean roasting company ■ 1985 – Howard Schultz becomes CEO and founds Il Giornale Coffee Company – espresso beverages using Starbucks coffee beans ■ 1987 – Changes name to Starbucks Corporation ■ 1992 – IPO under the trading symbol “SBUX” ■ 1995 – Starbucks Coffee International opens in Japan ■ 1996 – Begins selling bottled Frappuccino drinks ■ 1999 – Acquires Tazo Tea company and Hear Music company ■ 2003 – Acquires Seattle’s Best Coffee ■ 2005 – Introduces Starbucks Coffee Liqueur; Acquires Ethos Water

[pic][pic] Analysis ■ Product ■ Price ■ Place (Location) ■ Promotion

Products (in store) ■ Starbucks sells brewed coffees, espresso beverages, cold blended beverages, food items, teas, branded coffee drinks, a line of ice

You May Also Find These Documents Helpful

  • Best Essays

    Starbucks the known name in the world of coffee business had started off with little company which now has transformed in a successful corporation. This brand has gained remarkable success over period of time and has proved itself as a reputable coffee provider in term of taste and quality. The major contribution in this success was their aggressive expansions strategies. These strategies have enabled them to develop a dense chain of stores not only in America but all over the world. Their strategic approach towards the business has enabled them to gain value of $12 billion in 2008 from $2.9 billion in 1998 (Higbee, Liaw, Ting, Tjho, ton, 2008).…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Starbucks Ltd.

    • 2467 Words
    • 10 Pages

    Three Seattle entrepreneurs started the Starbucks Corporation in 1971the name comes from Herman Melville 's Moby Dick. Their prime product was the selling of whole bean coffee in one Seattle store. By 1982, this business had grown tremendously into five stores selling the coffee beans, a roasting facility, and a wholesale business for local restaurants. Howard Schultz, a marketer, was recruited to be the manager of retail and marketing. He brought new ideas to the owners, but was turned down. Schultz in turn opened his own coffee bar in 1986 based on Italian coffee cafes, selling brewed Starbucks coffee. By 1987, Schultz had expanded to three coffee bars and bought Starbucks from the original owners for $4 million. He changed the name of his coffee bars from Il Giornale to Starbucks. His intention for the company was to grow slowly with a very solid foundation. He wanted to create a top-notch management by wooing top executives from other well-known corporations. For the first two years, Starbucks losses doubled as overhead and operating expenses increased with Starbucks ' expansion. Schultz stood his ground and did not sacrifice long-term integrity and values for short-term profit. By 1991, Starbucks ' sales increased by 84% and the company was out of debt. Starbucks grew to 26 stores by 1988. By 1996 it grew to 870 stores with plans to open 2000 stores by the year 2000.…

    • 2467 Words
    • 10 Pages
    Good Essays
  • Better Essays

    SEC 10 k paper 221

    • 1145 Words
    • 4 Pages

    In 1982 Howard Schultz joined the company as the Director of Marketing and Retail Operations. He tried to convince the coffee shop partners to expand the business by selling pre made coffee. The founders did not want to take away from their core business. Schultz decided to leave Starbucks and open his own coffee shop called Giornale. In the end Schultz ended buying Starbucks and acquiring his old position back.…

    • 1145 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Catching the Starbucks Fever

    • 10312 Words
    • 42 Pages

    Starbucks opened operations in Seattle's Pike Place Markets in 1971 with the future aim of providing coffee to a number of restaurants and surrounding bars. With the recruitment of Howard Schultz who led the marketing and retail efforts of Starbucks in 1982, the company took a change in direction through the views of Schultz, who after visiting Italy tried to adapt the same principles in order to a strong bar culture. Schultz then utilized Starbucks ability to provide quality coffee beans and opened up a new store called Il Giornale, which brewed coffee from these particular beans. By 1987, Il Giornale had decided to take over the assets of Starbucks and also, further changed its name to Starbucks Corporation. By the end of the year, Starbucks had increased the number of stores to 17 and furthered its location span by entering Chicago and Vancouver.…

    • 10312 Words
    • 42 Pages
    Powerful Essays
  • Good Essays

    Starbucks History

    • 822 Words
    • 4 Pages

    In 1982 Starbucks had owned to five branches of Starbucks store that servings coffee to restaurants and espresso bars. As for their success, Harold Schultz was employed as the director of retail operations and marketing. After Harold became the director of retail operation and marketing he suggested to the founder of the Starbucks coffee that they opened a downtown Seattle Coffee Bars. The founders agree with his suggestion and finally opened the Downtown Coffee Bars in 1984. The Downtown Coffee Bars was a success in business and after the success of this shop they begin starting their own company in 1987 named Il Giornale and changed its name to Starbucks Cooperation, After that they opened their location in Chicago and Vancouver. In 1992 the Company went to public because of the initial public offering, since then Starbucks started to grow at…

    • 822 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Starbucks Brand Inventory

    • 1657 Words
    • 7 Pages

    Entrepreneur Howard Schultz joined the company in 1981 as Director of Retail Operations and Marketing, and after a trip to Milan, Italy, advised that the company should sell coffee and espresso drinks as well as beans. But to them, coffee was something to be prepared in the home, but they did give away free samples of pre-made drinks. Certain that there was money to be made selling pre-made drinks, Schultz started the Il Giornale coffee bar chain in April 1986 but returned in August 1987 to purchase Starbucks with the help of local investors.…

    • 1657 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    They have a wide variety of different products. Their main product that they are well known for is their line of premium coffee products. They offer more than 30 blends and single origin coffees, hand crafted espresso and blended beverages, Tazo teas, a line of bottled frappuccino coffee drinks and Starbucks dubbleshot. They also offer an exclusive line of Starbucks Barista home espresso machines, coffee brewers and grinders, freshly baked pastries, a line of super-premium ice cream, a line of premium chocolate, sandwiches, salad, coffee mugs and coffee accessories, compact discs, and assorted gift items.…

    • 1354 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches, pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company 's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.…

    • 1119 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.…

    • 1365 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    founded in 1971 when its first store, Starbucks Coffee, Tea and Spice, opened in Seattle. In its first…

    • 12361 Words
    • 68 Pages
    Powerful Essays
  • Powerful Essays

    Brand Equity of Starbucks

    • 2059 Words
    • 9 Pages

    Howard Schultz is the Chairman, and Chief Global Strategist in Control of the Starbucks Company. In 1971, a small coffee shop which specialized in selling whole Arabica beans was opened in Seattle’s Pike Place Market by Gerald Baldwin, Gordon Bowker and Ziev Siegl. In 1982, Schultz joined the Starbucks marketing team and he was inspired by the Milan’s coffee culture to set up an espresso bar in the corner of its only downtown Seattle shop. At that time, he stated, “The idea was to create a chain of coffeehouses that would become America’s ‘third place’. At that time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people”. A few years later, Starbucks’ founder agreed to sell him company and he immediately began opening new stores. In 1992, the company had 140 stores in the Northwest and Chicago which was successfully competing against other small coffee chain. The same year, Schultz had raised $25 million in order to open more new stores across nation. By 2002, Starbucks had established as the dominant specialty-coffee brand in North America. Starbucks is even more impressive when the company spent almost null value in advertising the brand. Starbucks serves more than 20 million unique customers and operates in more than 5000 stores worldwide.…

    • 2059 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Management

    • 4561 Words
    • 19 Pages

    April 1985- Schultz opened a coffee bar – Il Giornale in Seattle – with a seed capital of $150,000 invested by Jerry Baldwin and Gordon Bowker. Soon, the second and third stores were opened in Seattle and Vancouver respectively.…

    • 4561 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    Starbucks Culture

    • 1731 Words
    • 7 Pages

    The world-wide craze known as Starbucks that has swept the nations had a very humble beginning. 1971, deep in the Seattle’s Pike Place markets, a small store was set up for roasting and retailing whole bean and ground coffee, tea and spices. Starbucks’ name was inspired by Moby Dick’s character in remembrance of the romance of the seas and early coffee trading traditions. This inspiration comes from the actual history of coffee, dating all the way back to the fifteenth century when the Arabs discovered the drink. It is said that coffee was so popular because the Muslims were forbidden from alcohol, so this energizing beverage was the perfect substitute. Subsequently, it began to travel through Europe and Africa in countries like Persia, Turkey, Egypt, and Syria.…

    • 1731 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Week 3 Team Assignment

    • 2151 Words
    • 7 Pages

    Starbucks was fortunate enough to have a head start on the coffee shop boom, circa 1990, as they opened their first store in Seattle, Washington in 1971. As an initial patron of Starbucks in 1981 Howard Schultz was fascinated with the company and thorough persistence, leadership, and influence over investors he was able to purchase the company in 1987. Today Starbucks is one of the most widely known and respected organizations and industry leader of specialty coffee and related retail products (Starbucks Corporation, 2014).…

    • 2151 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Starbucks’ story began in 1971. Back then Starbucks was a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market.…

    • 1919 Words
    • 8 Pages
    Powerful Essays

Related Topics