Starbucks KSF
1) What are Starbucks' key success factors? Are they applicable to China?
After a trip to Italy, Starbucks’ CEO Howard Schultz introduced a new coffeehouse concept in the United States. In Italy, Schultz observed that drinking coffee in bars was a way to socialize with people. Bars were a sort of “third place” other than home and the workplace. He wanted to offer the same concept in the U.S., offering not only high-quality coffee but also an “in-store” experience. Therefore, Starbucks stores were designed to offer Wi-Fi, comfortable seats, and some of them decided to play music as well. Starbucks’ link with music (in some stores customers could also create their own compilations and CDs) contributed to enhance the “in-store” experience, offering people a way to relax while drinking their coffee. Shultz’s idea was to make people feel comfortable as much as possible in Starbucks stores. Moreover, Starbucks’ high degree of diversification contributes to the sustainment of its competitive advantage. The company does not only sell coffee but also many other products, such as tea, beverages, pastries, sandwiches, and coffee/tea related items. Furthermore, Starbucks’ decision to locate its stores in strategic places, such as key city locations, helped the company to enhance its brand image. Starbucks’ brand image and reputation are also strengthened by the company’s commitment to corporate social responsibility, which means that the company does not only offer different benefits to its employees (e.g. offering them healthcare and stock options) in the belief that people are at the cornerstone of Starbucks experience but also invest in reducing its environmental footprint and improving coffee farmers’ working conditions. In addition, thanks to its high degree of vertical integration, the company can ensure quality control in almost every step of the supply chain. Last but not least, Starbucks’ growth was sustained by the different strategic joint ventures and alliances
After a trip to Italy, Starbucks’ CEO Howard Schultz introduced a new coffeehouse concept in the United States. In Italy, Schultz observed that drinking coffee in bars was a way to socialize with people. Bars were a sort of “third place” other than home and the workplace. He wanted to offer the same concept in the U.S., offering not only high-quality coffee but also an “in-store” experience. Therefore, Starbucks stores were designed to offer Wi-Fi, comfortable seats, and some of them decided to play music as well. Starbucks’ link with music (in some stores customers could also create their own compilations and CDs) contributed to enhance the “in-store” experience, offering people a way to relax while drinking their coffee. Shultz’s idea was to make people feel comfortable as much as possible in Starbucks stores. Moreover, Starbucks’ high degree of diversification contributes to the sustainment of its competitive advantage. The company does not only sell coffee but also many other products, such as tea, beverages, pastries, sandwiches, and coffee/tea related items. Furthermore, Starbucks’ decision to locate its stores in strategic places, such as key city locations, helped the company to enhance its brand image. Starbucks’ brand image and reputation are also strengthened by the company’s commitment to corporate social responsibility, which means that the company does not only offer different benefits to its employees (e.g. offering them healthcare and stock options) in the belief that people are at the cornerstone of Starbucks experience but also invest in reducing its environmental footprint and improving coffee farmers’ working conditions. In addition, thanks to its high degree of vertical integration, the company can ensure quality control in almost every step of the supply chain. Last but not least, Starbucks’ growth was sustained by the different strategic joint ventures and alliances