Starbucks Case
March 4, 2013 [Starbucks ]
Starbucks Case Questions
In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective?
In the early 1980’s Howard Schultz, became captivated and saw possibilities in the fledgling specialty coffee market as he studied and observed that only a few Independent specialty coffee roasters existed and most of these businesses were small operations without large advertising budgets. Schultz recognized that many companies such as Peet’s and Starbucks had an enthusiastic base of regular customers who were instrumental in sharing such enthusiasm for gourmet coffee with friend, associates, and family. Schultz also noticed that the revenue gained from specialty coffee was significant and that the market was relatively untapped as the statistics revealed that gourmet coffee accounted for less than one tenths of the total industry sales in the early 1980s. Recognizing that specialty coffee represented a small fraction of industry sales, that was fragmented; 60% of which, represented roasted coffee and 80% being instant, Schultz saw an opportunity to apply his skills. Having a shrewd business mind was a major advantage for Schultz in shaping his perspective and despite the fact he had no industry experience, he had acquired the taste of coffee drink contained in cans that were sold in supermarkets. Schultz, was critical that the fragmented specialty coffee business was a burgeoning opportunity for him. Schultz further believed that there was a high demand to supply persons with this product and had intention to seize them. Schultz had the confidence that he could apply his skills to build a strong company and create a market for high quality coffee.
Being the eldest child for his Jewish parents who lived in one of New York boroughs he
Starbucks Case Questions
In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective?
In the early 1980’s Howard Schultz, became captivated and saw possibilities in the fledgling specialty coffee market as he studied and observed that only a few Independent specialty coffee roasters existed and most of these businesses were small operations without large advertising budgets. Schultz recognized that many companies such as Peet’s and Starbucks had an enthusiastic base of regular customers who were instrumental in sharing such enthusiasm for gourmet coffee with friend, associates, and family. Schultz also noticed that the revenue gained from specialty coffee was significant and that the market was relatively untapped as the statistics revealed that gourmet coffee accounted for less than one tenths of the total industry sales in the early 1980s. Recognizing that specialty coffee represented a small fraction of industry sales, that was fragmented; 60% of which, represented roasted coffee and 80% being instant, Schultz saw an opportunity to apply his skills. Having a shrewd business mind was a major advantage for Schultz in shaping his perspective and despite the fact he had no industry experience, he had acquired the taste of coffee drink contained in cans that were sold in supermarkets. Schultz, was critical that the fragmented specialty coffee business was a burgeoning opportunity for him. Schultz further believed that there was a high demand to supply persons with this product and had intention to seize them. Schultz had the confidence that he could apply his skills to build a strong company and create a market for high quality coffee.
Being the eldest child for his Jewish parents who lived in one of New York boroughs he
References: Mandossain, A.(2009). Do you measure your critical drivers daily? Retrieved March 2m 2012, from http://www.alexmandossian.com/2009/06/04/what-are-your-critical-revenue-drivers/.