Starbucks Corporation (www.starbucks.com) is named after the first mate in Herman Melville’s Moby Dick. It was founded in 1971 in Seattle. The original name of the company was Starbucks Coffee, Tea and Spices, later changed to Starbucks Coffee Company.
Starbucks sells more than coffee; it sells the Starbucks experience. Leveraging a strong brand, the company is expanding into new markets at home and abroad. The challenge is to grow while maintaining a consistent, high-quality customer experience.
Questions
1. What could be the main motives for Starbucks in owning most of its coffee houses compared with other entry modes and operation forms?
2. How does Starbucks’ entry into the grocery market affect the company’s relationships with its retail customers?
3. How did Starbucks make the successful transition from a niche to a mainstream marketer? What can the company do to maintain its ‘small company feel’ as it expands globally?