Service Operation

In: Business and Management

Submitted By arankit006
Words 1343
Pages 6
Group 6
Submitted by
Ankit Kumar Varsaney (14PGP071)
Abhishek Sharma (14PGP062)
Choudhari Amit Prakash (14PGP012)
Ronit Kumar Jena (14PGP111)
Sanjeet Sahu (14PGP112)
Group 6
Submitted by
Ankit Kumar Varsaney (14PGP071)
Abhishek Sharma (14PGP062)
Choudhari Amit Prakash (14PGP012)
Ronit Kumar Jena (14PGP111)
Sanjeet Sahu (14PGP112)
SO Project Starbucks : Delivering Customer Service |

1. What factors accounted for the extraordinary success of Starbucks during the 1990s?
Starbucks success can be determined by the fact that Starbucks enjoyed 11 consecutive years of 5 % or higher comparable sales growth. Starbucks was adding 3 stores each day leading to 5886 stores at the end of FY2002. Sales had increased at the rate of 40% and net income has risen to 50% without investing much in marketing. There are various reasons behind the huge success of Starbucks. Some of them are as follows: * Vision of Starbucks, “third place” helped the company in creating a better relationship between employees and customers. Employees tried to provide experience so that customer feels connected with Starbucks and treat stores as a third place after home or work, a place that mean different things to different people. * Starbucks value proposition was aligned with the need of the targeted customers. Starbucks brand strategy, captured by “live coffee” mantra perfectly reflected national coffee culture. Value proposition had three components, which enhanced overall experience of coffee consumption.

* Premium Coffee: Quality of Coffee was the main component of Starbucks success. They believed in offering the highest quality coffee.It sourced coffee from the Africa, Central and South America, and Asia-Pacific regions.In order to maintain the standard of coffee at everystore, it controlled the supply chain as much as possible.It also controlled the…...

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