Starbucks: Evolution of a Global Brand
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTA064
Case Length : 18 Pages
Period : 2003
Organization : Starbucks
Pub Date : 2003
Teaching Note :Not Available
Countries : Global
Industry : Speciality retailers
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
The Growth of Specialty Coffee
While the basic coffee business stagnated in the 1970s and 1980s, the specialty segment, consisting of interested, educated buyers who cared about the quality of coffee as well as the service expanded. It remained a fragmented niche market in the 1950s and 1960s...
The Evolution of Starbucks
Gordon Bowker, Jerry Baldwin, and Zev Siegl opened a store in Seattle (Washington) to roast and sell quality whole beans in early 1971. They drew inspiration from a Dutch immigrant, Alfred Peet who had begun importing high quality coffee into the US during the 1950s...
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Product Line
Starbucks product mix in each store varied, depending on the size and location of each outlet. Larger stores carried a greater variety of whole coffee beans, gourmet food items, teas, coffee mugs, coffee grinders, coffee-making equipment, filters, storage containers, and other accessories...
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Managing Growth
Starbucks was one of the fastest growing companies in the US. During the period 1987 to 2002, the number of coffee shops increased from 17 to 5689. Since it had made its IPO in 1992, Starbucks sales had been growing at a rate of 20% per annum and its profits at a rate of 30% per annum...
Store Management
Schultz set high standards for the development and construction of company stores. He wanted the design of each space, including layout, lighting, and furnishings, to reinforce the company's commitment to fine coffee products. Starbucks had an in-house team of real-estate managers, architects, designers, and construction managers...
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Excerpts Contd...>>
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