Starbucks Business Strategy

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Starbucks was established in 1971 by three local businessmen who wanted to sell high quality whole beans coffee. In 1981 when Howard Schultz visited the store, he planned to construct a solid company and grow high quality coffee business with the name of Starbucks. Starbucks wanted to provide high quality of coffee to its customers and aimed to succeed product innovation, retail expansion and provide good service quality as a long term business. Starbucks opened its first coffee store in Seattle, Washington. In 1990 Starbucks expand its headquarters in Seattle and also build a new roasting plant. In the later year in 1990s, Starbucks opened 60 retails shops in UK (United Kingdom). At the end of 2000s, total branches of Starbucks was 3500. In…show more content…
Starbucks also had to emphasis on customer’s ways, traditions or perception of buying a product and share its specialty of coffee with the purchasers. In the end of 20th century, there are many variations or fluctuations in market that helped Starbucks to be successful. The most important transformation of the last twenty, thirty years in the world of business is in the changes of economic policies over the world. This change is because every industry has now its financial/income statements, own strategies to be successful and every firm targets its customers in its specific way. The target market of Starbucks was 18 years to 24 years. Starbucks target young professional people because in this young age, they are not yet been loyal with coffee industry. So Starbucks made this strategy by thinking that at this young age, more people will come to the stores for drink coffee without much consideration and also, they made a strategy for professional youngsters because these professional people, while working on any of their department, will have to come for drink a cup of coffee to overcome their working stress. Moreover, Starbucks strategy includes to locate its stores at selective places such as the first floor of offices because the main staff at any office mostly working at the first floor, secondly at the main entrance i-e underground places because at entrance, everyone can drink while entering or leaving the office and thirdly at urban areas because at urban areas, people are more aware of coffee’s. Starbucks sales totally depends on company’s retail stores and specialized retail operations. Starbucks sells coffee and tea products through many other networks like distribution targeting restaurants, hotels, colleges and universities and other work places. According to Fleisher & Bensoussan

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