Starbucks Case Analysis
Starbucks Case Analysis
I. Company Overview
Starbucks was founded in 1971 in Seattle Washington. Their prime product was the selling of whole bean coffee in one Seattle store. By 1982, the business had grown to include five stores selling coffee beans, a roasting facility, and a wholesale business for local restaurants. Howard Schultz was recruited to be the manager of retail and marketing in the early ‘80s. Schultz got the idea for the current Starbucks format from a trip to Italy where coffee was a major draw for Italian cafes. He bought Starbucks from the original owners for $4 million in 1987 and set about expanding his concept.
The initial focus of Starbucks expansion was the premium customer who valued the "Starbucks experience" – great coffee, first-rate music, and a comfortable and upbeat meeting place. Starbucks grew rapidly in the U.S. with over 10,000 retail stores representing 79% of their total revenue. Recently, Starbucks has attempted to reach the......
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