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1. A) Factors accounted for the success of Starbucks in the early 1990s:
It has broad distribution strategy. Starbucks owns nearly one-third of America’s coffee bars, which is more than its next five biggest competitors combined. Almost all of Starbucks’ locations in North America are company-owned stores located in high-traffic, high-visibility settings such as retail centers, office buildings, and university campuses. This made Starbucks a very convenient coffee bar because of the many different locations. They also work with third parties to raise brand awareness and reach new customers. They sold coffee products through non company operated retail channel for example hotels, restaurants, airlines. They partnered with pepsi0cola to distribute bottled Frappuccino beverages. And Dreyer’s Grand ice cream to distribute a line of premium ice cream.
Starbucks really pays attention to its employee satisfaction, they believe that partner satisfaction leads to customer satisfaction. They had one of the lowest employee turnover rate in the industry.
Starbucks “Just Say Yes” policy empowered partners to provide best service possible, even if it required going beyond company rule. The last thing they want to do is win the argument and lose the customer. They also track service performance using a program called the Customer Snapshop

B) Starbucks’ brand image during 1990s * Coffee quality: it offered the highest quality coffee in the world and controlled much of the supply chain as possible. It worked directly with growers to purchase green coffee bean, it oversaw the custom roasting process and controlled the distribution to retail stores around the world. * Service: aims to creating Experience for customer which was referred to as customer intimacy. This included simple things such as remembering someone’s name or drink order, their preferences. *

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