The Success of Starbucks - 808 Words

The success of Starbucks Starbucks was born in 1971 as a small coffee shop. With the management of Howard Schultz, Starbucks turned into a business legend and built a kingdom of coffee. It was dominate specialty-coffee brand in North America. By mid-2002, the company was serving 20 million unique consumers in more than 5000 stores all over the world. It developed at a very high speed. The gross profit of the company increased from 730.2 million to 1938.9 million in about 5 years (1998-2002). Its retail business expansion was also amazing. In 1998 there were 1755 Starbucks’ stores in North America while the numbers increased to 4574 in 2002. It was also true of its international expansion. There were only 131 stores in 1998. But in 2002†¦show more content†¦The respondents showed that more people strongly agreed the Starbucks care more about making more money and building more stores. The percentage of the increasing number was about 7%. There was also a change on Starbucks’ customer base. Compared with the established customers, the new customers tended to be younger, less-educated, and lower income. What’s more, these customers visited the stores less frequently with average 15 cups of coffee per week. The established customers consumed 19 cups of coffee per week on average. The new customers had very different perceptions of the Starbucks brand. Their overall opinion of Starbucks was 25% while the established customers’ was 44%. This definitely showed the lower customer loyalty. On the term of â€Å"worth paying more for†, there were only 8 percentage of new customers though it was worth. It also meant that it was hard to retain these new customers. When someone cared more about the price and thought there was no significant difference between Starbucks and other coffee brand, he or she would not come again. From exhibit 9 we could see the direct link between customer satisfaction and customer loyalty. Starbucks focused too much on its business expansion and lose sight on the customer satisfaction which had bad influence on its future development. The company should come up with a new plan to salve these problem and meet customer s’Show MoreRelatedStarbucks : The Success Of Starbucks1080 Words   |  5 Pages What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? The factors for the extraordinary success of Starbucks is all due to the vision of Howard Schultz. Schultz wanted to change the coffee drinking experience by establishing benefits to create value in the coffee drinking experience. One of his vision was to recreate the coffee culture in ItalyRead MoreStarbucks : Starbucks s Success1409 Words   |  6 Pages Starbucks in Turkey MBA 642 Dr. Pradeep Gopalakrishna June 24, 2015 Jeffrey Allen â€Æ' 1. 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