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Star Bucks

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Submitted By rajal88
Words 400
Pages 2
Case Analysis:
Starbucks has clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. However, recent research, conducted to Starbucks, have showed some concerns regarding company problem meeting customers’ expectations. To increase customer satisfaction level, Christine Day, the Starbucks senior vice president of administration in North America, suggested a plan to add additional 40 million annually for extra 20 hours of labor per every store. This move should help the company to accomplish lower time of service to three minutes. Highlights:
1.Well-established and growing brand recognition
2.Product and brand consistency
3.Valued and motivated employees, good work environment
4.Good relationships with suppliers
5.Industry market leader
6.Wide variety of product offerings
7.Offers free Wi-Fi in stores and a comfortable space for its customers
8.An international brand with more than 4500 stores around the globe
9. Joint Ventures with other companies such as Pepsi-Cola, Dreyer’s Grand Ice Cream.
10. Installation of automated espresso machines which decreased the number of steps required to make espresso beverage.
11.Customer Snapshot
12.Constant product innovation
13.Service innovation ( Starbucks’ stored-value card or SVC)
14.“Just say Yes” policy
Challenges:
1.Prices of their products are continually rising, thus risking the loss of customers
2.Customization of beverages – slows down the service process
3.Self-cannibalization
4.Organizational structure (lacks strategic marketing group)
5.Very little image or product differentiation between Starbucks and the smaller coffee chains
6.Speed of service is one of the main strength of Starbucks is now found to be declining.
Competition:
1.Rising competition with specialty coffee shops as well as

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