Starbucks Case Analys
5. Do you see any limits to Starbuck’s growth?
Yes, there are some limits to stop Starbuck’s growth. Frist of all is over-expansion strategy they have. Starbucks expanded at every corner, being next to each other and in the same neighborhood. Starbucks planned to add more than 2,000 new stores in 2008, but the growth in new stores was slow. Since the recession of economy in 2008, they had to close 600 poor performance stores and fired 12,000 employees. Another huge limit came from McDonald’s threat. In the last few years, McDonald had upgraded its coffee called McCafe at cheaper prices less than Starbucks.
6. Would drive-through windows make Starbucks more attractive or less attractive? Why?
No, drive-through windows would damage Starbuck’s brand value. Although using drive-through window is more convenience to customers, it makes Starbuck look like fast-coffer shop. Starbucks’ mission to make its stores a “third place” for people to go besides work and home comes by offering services like free internet and comfortable chairs. Customers could meet and chat or simply enjoy a peaceful afternoon. It needed to safeguard its image as a coffeehouse, not a fast-coffer shop that has drive-through window.
7. Several recent surveys have found that Starbucks coffee in blind taste tests is not rated any higher by consumers than McDonald’s, Dunkin’ Donuts, and some local coffee houses. Yet Starbucks continues to command a price premium. Discuss.
Starbucks think they are not in the fast-food business. Starbucks successfully changed the public opinion of coffee products from a commodity to a luxury good, and spread an elegant charm café culture and a unique Starbuck’s experience. Its target customers are white collar who have good education background and good income. These people love Starbuck’s coffer culture and also can accept its price.
8. “Starbucks’s unspoken strategy for repeat business is coffee so strong in caffeine that customers become addicted to it like
Yes, there are some limits to stop Starbuck’s growth. Frist of all is over-expansion strategy they have. Starbucks expanded at every corner, being next to each other and in the same neighborhood. Starbucks planned to add more than 2,000 new stores in 2008, but the growth in new stores was slow. Since the recession of economy in 2008, they had to close 600 poor performance stores and fired 12,000 employees. Another huge limit came from McDonald’s threat. In the last few years, McDonald had upgraded its coffee called McCafe at cheaper prices less than Starbucks.
6. Would drive-through windows make Starbucks more attractive or less attractive? Why?
No, drive-through windows would damage Starbuck’s brand value. Although using drive-through window is more convenience to customers, it makes Starbuck look like fast-coffer shop. Starbucks’ mission to make its stores a “third place” for people to go besides work and home comes by offering services like free internet and comfortable chairs. Customers could meet and chat or simply enjoy a peaceful afternoon. It needed to safeguard its image as a coffeehouse, not a fast-coffer shop that has drive-through window.
7. Several recent surveys have found that Starbucks coffee in blind taste tests is not rated any higher by consumers than McDonald’s, Dunkin’ Donuts, and some local coffee houses. Yet Starbucks continues to command a price premium. Discuss.
Starbucks think they are not in the fast-food business. Starbucks successfully changed the public opinion of coffee products from a commodity to a luxury good, and spread an elegant charm café culture and a unique Starbuck’s experience. Its target customers are white collar who have good education background and good income. These people love Starbuck’s coffer culture and also can accept its price.
8. “Starbucks’s unspoken strategy for repeat business is coffee so strong in caffeine that customers become addicted to it like