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Howard Schultz: Building Starbucks Community - Case Analysis

Howard Schultz grew up in Brooklyn and worked in sales before getting introduced to Starbucks in 1982. In 1987, he acquired Starbucks and renamed it Starbucks Corporation. Under Schultz's leadership, Starbucks maintained its competitive advantage by keeping its distinctive culture, listening to customers, and adapting to local cultures when expanding globally. The document discusses Starbucks' strengths as a leading specialty coffee brand, weaknesses in high prices and domestic presence, opportunities in emerging markets, and threats from competitors. It recommends Starbucks continue adapting its culture in new locations and developing non-coffee products.

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366 views

Howard Schultz: Building Starbucks Community - Case Analysis

Howard Schultz grew up in Brooklyn and worked in sales before getting introduced to Starbucks in 1982. In 1987, he acquired Starbucks and renamed it Starbucks Corporation. Under Schultz's leadership, Starbucks maintained its competitive advantage by keeping its distinctive culture, listening to customers, and adapting to local cultures when expanding globally. The document discusses Starbucks' strengths as a leading specialty coffee brand, weaknesses in high prices and domestic presence, opportunities in emerging markets, and threats from competitors. It recommends Starbucks continue adapting its culture in new locations and developing non-coffee products.

Uploaded by

shukla224
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SECTION 3: GROUP 12

FT183004 ABHISHEK SHUKLA


FT183033 GOVIND RAJ
Howard Schultz: Building Starbucks FT183034 HARSIMRAN PREET SINGH

Community Case Analysis FT183035 HRITUPARNO DEB


FT183099 SWAPNIL SRIVASTAVA
FT183104 VANESSA J VADASSERY
Introduction
Born in 1953 in Brooklyn, New York to a Jewish family
Father was a blue collar worker
Worked as a sales trainee in Xerox dissatisfied due to the rigidness
Worked at Hammerplast selling coffee filters Got introduced to
Starbucks
In 1982, became director of operations and marketing for Starbucks
Started Il Giornale in 1985 - chain of espresso cafs in Seattle
1987 3 new cafes opened still no profit
1985- Acquires Starbucks Renames it Starbucks Corporation
Reason for success
Starbucks must maintain the competitive advantage
by keeping to its own distinctive culture
Listening and adapting to its customers and their needs
Adapting to localised cultures and developing a culture
in each location that is apt
New products should be developed Look beyond coffee
to attract the Asian market
Strengths and Weakness
Strength
Leading retailer and roaster for brand specialty coffee in the world
Known for providing superior products and services
Consistent high quality of service
Limited number of strong competitors and High market share and market growth
Weakness

High pricing because of the quality ingredients used

Strong presence in the U.S. - more than three quarters of its cafes located in the domestic
market

In order to reduce business risk, expansion is needed


Opportunities and Threats
Opportunities
High growth of economy and market in emerging markets, especially in urban areas
Could diverse their product not only in coffee
The potential employees are educated people which make it easier to train them
Strong financial support
Threats
Competitors and copycat brands could pose potential threats
Threats of substitute products and services such as colas, teas or juices
that are sold in retails
Exposed to rises in the cost of coffee and dairy products
Recommendations
Starbucks must maintain the competitive advantage by
keeping to its own distinctive culture
Listening and adapting to its customers and their needs
Adapting to localised cultures and developing a culture in
each location that is apt
New products should be developed Look beyond coffee
to attract the Asian market
Conclusion
Howard Schultzs vision has ensured that Starbucks has
been a market leader
He revolutionized the coffee experience From a regular
to commodity to a third place experience
Having their own culture and innovative spirit has kept
them ahead of their competitors

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