STARBUCKS CASE ANALYSIS

In the case of Starbucks' growth, many strategies have been involved throughout in

different periods for its growth in the market. The company has evolved by bringing in

new strategies that have pushed it to it is current position. Considering the type of

products the company sells, the marketing strategies developed are based on it to reach

the market targeted. Besides, Starbucks improved because of hiring a well-trained

individual to drive the business to its peak. Contact me through omae.justus@yahoo.com

to write your papers, Therefore, in the case its analysis will be based on various factors

that have been involved and considered to make the company grow.

For instance, the arena of the company is more important to it and other stakeholders to

join and invest in it. For example, licensing of the business is key to the company to

make its operations successful. The company had risen to it is state from the locations it

started within Washington to the retail stores that are currently in the market in different

countries, and this is how it chooses its arena to handle the business across. The company

had to be adaptive in different ways, and it could have managed to face its customers and

know what they like and implement it.

Following the history of the company, it had experienced drawbacks making it to fail in

its operations. In 1971, only home-brewed drinks were available for the Americans. Thus,

the company had thought of improving to bring in more other brands to bridge the gap

and help customer have variety of products they needed to enjoy and get satisfied.

However, the company could develop a strategy of opening more restaurants in different
regions in United States for supply of its products. Therefore, in 1982, the company had

only five retail outlets that mainly supplied beans, and this attracted the CEO to have new

ways to improve the business. One of the strategies the company thought was to create

filters for the products at home, as the CEO went ahead to research on why the company

needed more filter and yet was small in its business empire.

The company arena evolved more when the CEO came back from Italy. Schultz noticed

one best strategy they were not aware that could tap into more customers as the best

strategy. Opening branches in different places with good environment and ample parking

for cars and making the place friendlier for the customers to socialize and have

conversations as they buy the product from the shop. This was much significant for the

company to expand the business and to attract more investors. However, the strategy was

never developed, and the CEO had left the company until the time was back to implement

it. Starbucks was acquired by Giornale with all the facilities it had in the operations. After

that, the company was rebranded in all the locations. This was a strategic way of making

the branches more improved for the customers to realize it and buy more of the product.

The company will considerably suggest a good mode of transport and is the way to

deliver the products to the locations opened. The vehicles they will consider to choose

and the design. This remains one of the best methods of advertising in the market to get

more trust. The company managed to gain customer's trust with their product in the

market by outdoing their competitors in the field, considering this the company opened

more stores that gave them a significant way of supplying the product.
From 1996 to 2006, the company made a move of improving by expanding its services

using different ways. In its marketing strategy, the company developed channels for

distributing the product to its stores in different regions within United States and outside

the state. The mode of transport was essential for the distribution of the products. Using

vehicles to deliver ingredients to the stores was a good process to help in succeeding the

business. Further, the capacity of carrying the goods to help in cutting down the expenses

was to be considered in time of distributing the products.

The company came up with another strategy for forming long-term agreements in its

licenses it signed. For instance, in the case of Starbucks' growth, the company met an

agreement with Kraft foods that could give it more assistance in growth. All the

operations in company were now under management of Kraft. The agreement made gave

it the responsibility of doing the business for Starbucks products on its behalf and in

every store in all opened locations. With this strategy, the company sold more products

and considering the prices, and they were lowered in the market. In 1998, the company

made sales of approximately fifty million dollars from the stores upon the agreement

signed to with Kraft for marketing of its products because of the firm’s expertness to do it

better. Further, in the distribution channel a more affordable strategy was developed for

the roasted coffee beans in different locations within United States. This project will cost

a lot of money but is the best and fastest way of transporting the product to all regions.

Another strategy that could have made the company to increase its sales in the market is

the expansion of the stores that were used in retailing its services in the market. For

example, in 2007, Starbucks had 15000 stores in place from 1000. It opened in 1996.
This sounds better since the strategy was opening a wide market for it is products.

However, the company’s goal was to open more branch locations worldwide with 20000

in united among the 40000 to be opened. An impact emerged at this stage when the

media was interested in the company’s achievement and later airing.

More changes took place since the new CEO took over the company. To make the

production process easier for the products, the company made a decision of changing

machines that needed less time and effort in producing the product. The machines

required simple skilled workers to operate them because the system of the machines was

automated. This strategy saved the company from the amount of cash it spent on labor. In

addition, consistency in delivering the product was maintained by cutting down any

shortage that could emerge due to high demand for the product in the market. In the arena

of the company in choosing different ways of managing the resources, highly trained

workers to operate the machines was better for making work easier in maintaining the

machinery to reduce the expenses for repair. This could make a move in prospering in the

field by implementing the CEO’s strategies.

In today’s world, business technology plays a vital role making communication and

operations in different companies easier. The company needs to give this section a

priority in its business by finding computer literate individual for every location within

the country. As one of the strategies the CEO needs to consider will help to deliver and

organize all the stocks of the company with reports to be generated to give the company

status for analysis. In addition, an employee is required in every location with MS-DOS

knowledge to assist in order predetermination with all using its specifications. A network
connection is essential for communications in sending emails and messages regarding the

company. The company developed another strategy in reopening other businesses within

the restaurants and its locations in United States. This was to increase the income apart

from the one generated from coffee drinks and other flavors in the company.

However, in all strategies the company used to rise in the field, still competitors emerged,

and this required good strategic plan to curb the competition. If this will not be

considered the company will face the challenge of defeating other firms in the field to.

However, from the case the company restructures itself to be in position of doing its best

in the business. For example, trying to hire qualified baristas and considering the period

at which the customers can wait to be served for their drinks.

In 2008, the CEO was back to the company to rebuild it again, through developing

transformational agendas, with some approved strategies to revive it. The first strategy

was to shut down all the stores, which did not generate returns. Under this strategy, the

main aim was to minimize the expenses. For instance, in 2009, operational costs worth $

580 million were cut down.

In 2009, Starbuck embarked on developing new strategic initiatives for its growth in the

market. First, one was to terminate the licensing agreement with other bodies involved in

the distribution of the products. For instance, Kraft's relationship with the company was

terminated because no improvement was seen, according to the CEO. This gave the

company an opportunity to take over in giving a promotion of its new products.

the business when the instant coffee was implemented under him. Also, rebranding the

company’s products was essential to drive out monotony in the market by emerging

competitively outdoing other independent businesses. However, the CEO signed back an

agreement with a different company, and this was a great achievement ever in the

company, as it became a premium in coffee and tea selling.

Starbucks' company improvement was a result of putting more effort into the new

strategies that have been developed within the company. This is because of acquiring the

skilled personnel to handle the activities in the company and developing good channels

for distributing the coffee and other products to various locations worldwide, making

changes to production line by buying new simple machines to save the company from all

the coasts it was incurring previously. Canceling other bodies licensing agreements was

essential to help in rebuilding the company to meet its financial target returns.