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Tuesday, September 27, 2005

Starbucks Case Study Analysis

Starbucks, originally based in Seattle, was established in 1971 and today with more than 6,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, Starbucks Coffee Company established itself as the dominant and most aggressive retailer in the coffee house segment. The company has transformed a simple beverage into a lifestyle accessory with as much elegance as the latest fashion (Starbucks.com). It offers whole bean coffees, espresso beverages, confectionery and bakery items and equipment in its retail stores. The retail strategy has been to put a coffee shop on every corner and to make fresh-brewed coffee by selling only the highest-quality products and charging a premium price. However, the product mix has changed significantly over the years, with beans accounting for about 15% of the chain's sales. Meanwhile, Starbucks is expanding its offerings with a line of ice cream for supermarkets and a joint venture with Pepsi Cola to market, frappuccino. The quality of the product has attracted a loyal and growing following among consumers.





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