Starbucks CaseEssay Preview: Starbucks CaseReport this essayWhat were the keys for success for Starbucks in building the brand?The keys for success for Starbucks were excellent segmentation and understand of their target; the fact that they were customer oriented: as said in the case, Howard Behar and other executives thought that Starbucks need to focus more on the customer and Behar suggested a new model to serve the customer – “do whatever it takes to please the customer as long as it is moral, legal, and ethical.”; suggesting to their employees that if they were happy and satisfied the customers would be too; store location: Starbucks is everywhere. The customer doesnt need to walk that much to find one and satisfy their needs; the fact that the customer knows that he/she will have the same experience no matter on which Starbucks he/she is in; seeing that the company could go further and sell more than coffee; it could create a lifestyle.
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What were its brand values?The brand values are high standards of quality for the raw material as well for the machines used to brew the coffee; having and excellent team of partners that would be satisfied working for Starbucks and would let it reflect in their jobs so it would reach the customers; and to provide an unique experience at any Starbucks store.
What were its sources of equity?Starbucks sources of equity were bringing the European-style coffee experience to Americans and then to the whole world; high quality of products and service given to the customers; the employee-customer satisfaction relationship; the fact that Starbucks can be found in almost every corner; and the knowledge held by the baristas.
2.1) How would you evaluate Starbucks growth strategy?In my opinion, Starbucks growth was successful and rapid. The growth made the company able to make some good partnerships and take advantage of good opportunities.
2.2) Are there things you would do differently?Actually, no.2.3) How would you evaluate partnerships (e.g. with United Airlines)?The partnerships brought new market segments and new customers to Starbucks, like is said on the case: 14% of the companys customers had their first Starbucks coffee in a United Airlines flights.
With these new partnerships, Starbucks was able to even more present in its customers life, on the plane, at hotels, as an ice cream, and some other ways.
2.4) How do you know whether it is a “good” or “bad” partnership?A partnership is good when it brings revenue to a company and it is bad when it doesnt bring it.3.1) What does it take to make class global brand?To be a global brand a brand have to think global, but act local; have consistency around the world; strong organizational structure; and have market leadership in some global markets so it is known around the globe.
3.2) Can Starbucks become one?Yes. Starbucks is present in over 50 countries with more than 5.500 coffeehouses. The company thinks global, but acts local: in Brazil, for example, the company adapted some of the products to fit the customers needs.
3.3) What hurdles must its overcome?The hurdles to overcome are: the local taste, the image of being an outsider, but only in some countries because, for example, the people who live in Rio de Janeiro (Brazil) were more than happy to welcome Starbucks to their city; compete with the local coffee houses; and make interesting and useful partnerships to help the brand grow in the chosen city/country.
3.4) In terms of the American market, what do you see as Starbucks biggest challenges?The challenges in America are staying relevant in the customers mind since there a lot of coffee