business · Coffee · Global · Marketing

The Strategy of Starbucks

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Starbucks is a company with world renown and was first established in 1971. In the last ten years Starbucks has tripled in annual revenue and earned $16.5 billion dollars in 2014 with a total of 21,366 stores. Starbucks is the second most valuable fast food brand in the world, second to McDonalds. What differentiates the company from its competitors is focus of speed and quality. Starbucks tries to get the customer their order in 3 minutes and 3-5 minutes when it’s busy. The equipment selected in each Starbucks store is at one of the highest quality pieces of equipment in the industry. Starbucks claims to have 87,000 different drink combinations and the barista can make each and every one of them. These specific steps translate to their brand and product value. Each store has high quality equipment and each store has a barista that can pour a perfect cappuccino and latte with the right amount of foam on top. The baristas are taken care of since Starbucks offers health insurance to their employees who work 20 hours a week or more costing $250 million dollars in 2009. This makes the baristas happy and enjoyable to speak to in the stores.

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The product in each global store relates to the target market because each cup of coffee ordered can be very unique to the customer. The 87,000 different drink combinations helps Starbucks fit in each market. Some stores in various countries change the look of their logo a bit to fit the culture and beliefs of the country. Most logos show wavy hair while in Saudi Arabia, the lady on the logo is covered up. Some countries (not the USA) show the full picture of the lady who is holding her legs (fins) in the air like a naked mermaid with two fins which seems to be a turn off in America. The Starbucks logo changes depending on where they are in the world. Starbucks is continually growing each year and looking to expand their global presence.

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Jacques, Francois M. (2007, May). Harvard Business Review. Volume 85, Issue 5. In Even Commodities Have Customers. Retrieved from http://web.b.ebscohost.com.ezproxy.snhu.edu/ehost/detail/detail?sid=a88cf095-0954-48bf-a909-2e0c688f6457%40sessionmgr198&vid=3&hid=110&bdata=JkF1dGhUeXBlPWNvb2tpZSxpcCx1cmwsY3BpZCZjdXN0aWQ9c2hhcGlybyZzaXRlPWVob3N0LWxpdmU%3d#db=bth&AN=24638248

Aimee Groth and Gus Lubin. (2011, July 29). Business Insider. Strategy. In 11 Things Starbucks Does Better Than Almost Any Competitor. Retrieved from http://www.businessinsider.com/starbucks-does-better-2011-7?op=1

Statista. (2015). The Statistic Portal. Prices & Access. In Statistics and facts on Starbucks. Retrieved from http://www.statista.com/topics/1246/starbucks/

Alissa Walker. (2011, January 10). A Magazine For the Global Citizen. Design. In New Starbucks Logo Too Racy for Some Countries. Retrieved from http://magazine.good.is/articles/new-starbucks-logo-too-racy-for-some-countries

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