BOS STARBUCKS
BLUE OCEAN STRATEGY
STARBUCKS
Starbucks Corporation, generally known as Starbucks Coffee, is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee.
The largest coffee house in the world with 21,160 stores in 63 countries was operating in a highly competitive market place and needed to re-define its proposition to its consumer base.
The Eliminate -Reduce -Raise - Create Grid
Eliminate:
Underperforming stores
Raise:
Education of coffee with employee
Verity in coffee
Reduce:
Price
Calories in certain specialty drinks
Amount of time employees spend making individual drinks
Create:
More loyalty rewards
A better every day brew
Generally the key factors coffee chains compete on are: price, quality, availability & location of the stores. Starbucks identified the opportunity to create new factors to add value for the customer that none of its competitors even thought of it.
Brand Aspiration - Accelerated Starbucks to become a global brand that created an aspiration brand which customers wanted to experience and became a “day-out” experience in meeting friends.
Customer Service – Starbucks focused on recruiting employees that were well trained and benefited directly from the organisations success thereby delighting customer
Variety - It’s not just about coffee, Starbucks have introduced a number of different products and drinks that cater for a wider audience which can be enjoyed in a social setting where customers can read, relax and socialise
As we can see, variety, customer service and Brand aspiration were not factors considered by the competition, hence providing Starbucks with a route to differentiation and regard these factors as highly valued to the organisation
STARBUCKS
Starbucks Corporation, generally known as Starbucks Coffee, is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee.
The largest coffee house in the world with 21,160 stores in 63 countries was operating in a highly competitive market place and needed to re-define its proposition to its consumer base.
The Eliminate -Reduce -Raise - Create Grid
Eliminate:
Underperforming stores
Raise:
Education of coffee with employee
Verity in coffee
Reduce:
Price
Calories in certain specialty drinks
Amount of time employees spend making individual drinks
Create:
More loyalty rewards
A better every day brew
Generally the key factors coffee chains compete on are: price, quality, availability & location of the stores. Starbucks identified the opportunity to create new factors to add value for the customer that none of its competitors even thought of it.
Brand Aspiration - Accelerated Starbucks to become a global brand that created an aspiration brand which customers wanted to experience and became a “day-out” experience in meeting friends.
Customer Service – Starbucks focused on recruiting employees that were well trained and benefited directly from the organisations success thereby delighting customer
Variety - It’s not just about coffee, Starbucks have introduced a number of different products and drinks that cater for a wider audience which can be enjoyed in a social setting where customers can read, relax and socialise
As we can see, variety, customer service and Brand aspiration were not factors considered by the competition, hence providing Starbucks with a route to differentiation and regard these factors as highly valued to the organisation