Starbucks Coffee: Penetration of the Ecuadorian Market
“We changed the way people live their lives,
what they do when they get up in the morning,
how they reward themselves, and where they
meet.” (ORÍN SMITH, Starbucks CEO)
Introduction and brief history
Starbucks success has changed gourmet coffee from a yuppie symbol status into a mainstream consumer good, and has created an American coffee shop market.
Starbucks started on March 1971 on Seattle, Washington where it opened its first store. If was founded by three partners Jerry Baldwin, Zev Siegl and Gordon Bowker who were all inspired by coffee entrepreneur Alfred Peet whom they knew personally. The store started by initially just selling coffee beans and coffee making equipment instead of the drinks that have made the so popular. During their first year of operation they bought their beans from Peet’s but then they began buying directly from growers.
After about a decade Howard Schultz was hired as director of retail operations and came to the conclusion that they should be selling drinks rather than just beans and equipment. He couldn’t convince the founders so he started his own chain called Il Giornale. By 1986 Starbucks had 6 stores in Seattle and had just started selling espresso. In 1987 the original owners sold Starbucks to Schultz who the renamed his Il Giornale stores to Starbucks which then started to expand quickly.
By 1992 Starbucks had 140 locations in the US, revenue close to 44 million, and a market value of 271 million. The first location opened outside North America was in Tokyo, Japan 1996, where they still have sizeable presence today. Over the course of its life Starbucks has acquired many companies like Peet’s and Seattle’s best coffee and has taken over many other locations.
In the 1990’s Starbucks started offering stock options to employees and finally became public…...