Starbucks is the world’s leading speciality coffee retailer, producing and selling a wide variety of beverages, as well as pastries and confections, through some 8,400 coffee shops throughout 30 countries around the world (Berlind, 1998). Starbucks also sells its beans to airlines, restaurants, businesses and hotels; manufactures coffee-related equipment and accessories, and produces a line of premium teas and a line of compact discs through its mainly company-operated retail stores.
According to O’Donovan (2004) in the four years since going public, the chain of coffee bars has become wildly successful by turning one of the world’s most pedestrian beverages into a premium product, wrapped in a carefully cultivated, widely recognized brand name that extends far beyond what’s in the cup. It is a brand that’s defined as much by attitude as it is by products. The Starbucks “experience” is about more than a daily espresso infusion; it is about immersion in a politically correct, cultured refuge from everyday hassles.
From inconspicuous beginnings as a one-store outfit in a marketplace 33 years ago, Starbucks has grown to become one of the most talked about brands in recent times. What really lit a fuse under Starbucks was not just its commitment to better beans but its move into retail – selling coffee by the cup. The stores were decorated with bins of coffee beans, photos of coffee trees, and shelves of gleaming coffee paraphernalia. Employees were trained to educate customers about what they were drinking and why it tasted good. For many, the experience was so engaging that Starbucks became a natural gathering place, and that made the brand familiar.
The Company’s formula for success is mainly based on the following:
For the brands that have managed to achieve worldwide fame and recognition, their prosperity has sewn them into popular culture and helped fashion them into icons of their time. Whether they are loved or hated, their influence remains undeniable.
Having established itself as a global force, many analysts are asking whether Starbucks can continue to go from strength to strength. Sustained success will require sharp focus on a set of key challenges, including innovation and experimentation. In order to achieve a competitive advantage, the Company continues to rapidly expand its retail operations and pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels.
Nowadays, Starbucks still retains its worldwide position, recognised as one of the most successful globalized companies that has created a strong brand and international experience.
Having established itself as a global force, many analysts are asking whether Starbucks can continue to go from strength to strength. Sustained success will require sharp focus on a set of key challenges, including innovation and experimentation. In order to achieve a competitive advantage, the company continues to rapidly expand its retail operations and pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels.
Nowadays Starbucks still retains its worldwide position recognised as one of the most successful globalized company that has created a strong brand and international experience.
References
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