1. In the beginning, Starbucks is originally a company that sold high quality coffee. However, the factor that can make Starbucks become much popular as today is many services provided along with the products in order to “enhance the quality of everything the customer see, hear, touch, smell or taste”. Nowadays, Starbucks is known as a famous brand for providing beverage with high-quality service for customer. It could be considered as Service as experiences and the price would be charged for the feeling that customers derive from engaging in the service. For example, beside the core value, there are many different experiences that Starbucks bring to their customer, such as: planning to expand the list of its menu by serving hot breakfast, developing Starbucks Card and Starbucks Express as well as high-speed Wireless Internet. In conclusion, Starbucks is much more a service than a product.
2. The first principle of service is Intangibility. It is implied that service cannot be patented easily and can be copied by the competitors. Therefore, companies can study a successful model to apply for themselves. Even the first idea for business model of Starbucks is come after its Marketing Director visits an Italian coffee shop. Of course, it should not be imitated the whole model. There should be adjustment and improvement (about the price also) to make it suitable with your own situation. It means the most important part is differentiating yourself when comparing with other company.
The second principle is Heterogeneous. Remaining the quality of service across time is a big challenge and depends a lot on many uncontrollable factors, especially human being factor. It is necessary to have a strong employee training and benefit program to attract and retain skilled staff at the company. As you can see, Starbucks is one of the companies which have a huge investment for employee. They train their staff not only about their skills but also the service-mind. Their benefit program is also considered as “a pioneering initiative in the restaurant business”. Starbucks want to make sure that their customers always receive the same quality of service at any time and any place. Moreover, the company should have researches to understand the needs of customer as well as the trend of market. It can be helpful to anticipate and set up suitable strategies in the future. For example, for the growing of the internet in the normal life, Starbucks decide to expand a high-speed wireless internet service to all their stores; because of the busy schedule and fast living-pace in this age, Starbucks have a Starbucks Express for customer ordering their beverage through phone or website before they come to store. It saves time and very convenient for their customers. The third principle is Inseparability. Services are often produced and consumed at the same time. The gap between producing and delivering is very short and delivering must be direct to customers. It is important to locate the stores in a convenient location to make the process from producing to delivering much easier. Starbucks always present in very popular areas, big cities, affluent areas and central shopping mall with clusters of stores so that customers can find them easily. The last principle of service is perishability. Because service cannot be saved, stored, resold or return, it is important to forecast demand and create plan to utilize the capacity of the company. Starbucks have already been aware of all the challenges when being a mature company. All they have done is creating many innovative offerings which is out of the boundary of coffee to attract new generations, new kinds of customers.

3. In my opinion, serving hot breakfast at store can be successful in the long run at Starbucks. Being a mature company in US, Starbucks have faced with many challenges about attracting new generation of customer and keeping loyal customers to stay with them. The fact is that both of these kinds of customer always want new things to satisfy their needs beyond coffee, especially the convenience. Instead of buying coffee and breakfast in different places, they would love to buy both in the same place. Starbucks can create a Breakfast combo, which includes a cup of coffee and hot sandwich, with an affordable price. Moreover, because store of Starbucks is very comfortable with popular location, nice seats, high-speed wifi and friendly employees, people can stay there to enjoy their morning. This could be a chance to serve them hot meal for breakfast. Nowadays, Starbucks have presented in Asia. So, because of the drinking and eating habit of Asian people, beside adding tea to the menu, serving hot breakfast is al so an advantage for Starbucks. In conclusion, serving food in general and serving hot breakfast in particular could be differentiated Starbucks with the other brand name in its market.