Case Study Coffee SW 10th Ave Portland, OR Grocery Stores - MapQuest

 

case study coffee

Case study on Starbucks Coffee. Product Analysis. Product Overview. Starbucks product line has grown to include fresh brewed coffee, hot and iced espresso beverages, coffee and non coffee blended beverages, Tazo tea, baked pastries, sandwiches, and salads. CASE STUDY: STARBUCKS KATHLEEN LEE 5 Above is the Boston Matrix. It shows the cash cows as the regular Starbucks line of Coffee’s, Latte’s and Frappacinos found at nearly every location. Jan 16,  · Royal Cup Coffee and Tea is a family-owned business that is a proven leader in sourcing, roasting, blending and providing high-quality coffees and fine teas since and is the chosen partner for restaurants, hotels, offices and commuters across the country.


Case study on Starbucks Coffee - Assignment Point


The economy in trouble, the stock market tanking it is important to start your day with a good cup of coffee to take on these challenges. The paper case study coffee Starbucks business and it respective practices. Their focus was to sell coffee beans and equipment. Later, they began buying coffee beans directly from the growers. Inan entrepreneur by the name of Howard Schultz joined the company; Schultz felt that the company should sell coffee and espresso drinks as well as coffee beans.

The partners felt that selling coffee and espresso drinks would take away from their primary focus of selling coffee beans. Since the idea did not work, Schultz started his own company called II Giornale coffee bar chain in Schultz changed II Giornale outlets to Starbucks chains and quickly began to expand.

Starbucks coffee has grown into the largest coffeehouse company in the world with 16, case study coffee, stores in 94 countries such as in Australia, Canada, China, Puerto Rico, etc. Starbucks has thirty blends and single origin coffee.

Starbucks brand coffee can also be purchased in local stores to brew at home. Starbucks employs overcase study coffee worldwide with over five million customers a week.

Starbucks product line has grown to case study coffee fresh brewed coffee, hot and iced espresso beverages, coffee and non coffee blended beverages, Tazo tea, baked pastries, sandwiches, and salads. The global consumer products include bottled Frappuccino, iced coffee, and espresso drinks, whole bean coffee, tea, coffee liqueurs and premium ice cream.

Starbucks understands concepts of brand identity and product differentiation. Starbucks realizes this success depends significantly on the value of the Starbucks brand while relying on its excellent reputation for their product quality, superior, and consistent customer service. The management believes it must safeguard and develop the value and importance of the Starbucks brand in order to bring continued success in the future. The perception of brand value by the consumer is based on an array of personal qualities, case study coffee.

Starbucks has been able to establish an ambiance of sophistication and intellect. Loyal customers enter the retail chain as an escape from their mundane lives into a serene, regal atmosphere where they proudly sip from their branded mugs. Starbucks profits from the case study coffee they make their customers feel, case study coffee, allowing them to portray a prominent image and feel like the upper crusted elite in society. Therefore, Starbucks brand equity and quality is synonymous with high prices and a classy image.

The Company already owns and has also applied to register many service marks and trademarks both in the United States and in many countries around the world. Starbucks owns numerous copyrights for items such as product packaging, promotional materials, in-store graphics, and training materials. Starbucks, case study coffee, despite their inflated prices have been able to create a sense of brand loyalty with and array of loyal followers.

Coffee is a fairly homogeneous item which Starbucks has been able to market their standards of portraying a luxurious lifestyle. Starbucks operates in a monopolistically competitive market structure in which they have been able to maintain a control over their inflated prices. They have been able to create a standard for their coffee and in which they require their customer base to be exaggerated prices for a cup of their various brews. With usage of the Starbucks logo, quality, and various trademarks, they differentiate their coffees from their competitors.

Starbucks prides itself on being completely different from any other coffee house and its competitors, which is a reason why Starbucks has become so successful, case study coffee.

Starbucks has mastered knowing how to benefit their customer; leverage the company widely to many products and markets, and create ideas that are hard for competitors to imitate. There are other homogenous coffee shops in the market, but their loyal customers believe that the superior quality, taste, and aroma cannot be found from any other coffee brewing entity. At one point, their customers were more interested in the pretense that holding a Starbucks cup represented, but due to the current economic conditions, their customers have began second thinking how they are affected by the extravagant price of the black gold they have been sipping.

Operating in a monopolistic competitive society has caused the Starbucks effect to crumble. The organization has been able to maintain customers in the short run that were more interested in their details rather than price, case study coffee. When a business is making a profit in the short run, they will eventually reach equilibrium in the long run because their demand will eventually decrease, as we have seen in the recent times. Due to this, in the long run, case study coffee, this monopolistically competitive firm will result in a zero economic profit.

Because Starbucks has profited on their brand loyalty, they know that some loyal customers will never depart despite the towering prices, case study coffee. With the recent news of Starbucks closing six hundred store, it case study coffee evident that they have been running in a marginally inefficient business model.

Most monopolistically competitive firms are marginally inefficient because production average total cost is not at the lowest point. In this event, in the long run, the marginal cost is simply less than the price of the good. This translates to the price of the Starbucks beverage to me marked up over the cost of production.

The cost of producing for Starbucks may not be the most cost-effective, but it is less than the price charged for their gourmet brews. This could also case study coffee why the price of Starbucks coffee is so high; their production costs are high and must that cost onto the customers to increase their revenue and decrease expenses. Monopolistically competitive firms, case study coffee, like Starbucks are driven by mass advertising and the establishment of brand names and logos.

Case study coffee ambiance and products are marketed by the elevated, intellectual connotations. There are many coffee shops on the market that also offer tasty aromatic coffees, but the advertising and atmosphere of the Starbucks shops draws customers in.

People are spending more on Starbucks brews because of the logo and status attached to them. Because coffee many times is virtually identical, advertisers case study coffee producers narrow in on what the consumer wants and allow their products to portray those ideals. To differentiate between like coffees, consumers must sample all types and determine what suits their tastes and lifestyles.

Yet, there are too many coffee options on the market and consumers do not case study coffee the time or the funds to sample various brands. Advertisers are aware of this and therefore embark on targeted ad campaigns to attract more consumers. Starbucks attracts their customers over their competitors by their ad campaigns and serene atmosphere of success.

Starbucks main competitors are quick-service restaurants and specialty coffee shops. There are an abundant amount of competitors in the specialty coffee beverage industry. The company believes that its customers choose among retailers primarily on the basis of product service, service, price, and convenience. Starbucks, in recent times, case study coffee, has experienced drastic direct competition from large US competitors from quick-service restaurants.

These restaurants have significantly greater marketing and operating resources than they do. Starbucks is also faced with well-established competitors in the International markets with increased competition in the U.

Starbucks whole bean coffees compete directly against specialty coffees sold through supermarkets, specialty retailers and a growing number of specialty coffee stores. Both their whole bean coffees and coffee beverages compete indirectly against all other coffees on the market. Starbucks Specialty Operations face significant competition from established case study coffee and mail order suppliers, some of whom have greater financial and marketing resources than the Company.

Starbucks faces intense competition from both restaurants and case study coffee specialty retailers for prime retail locations and qualified personnel to operate both new and existing stores. The intensity of rivalry increases as businesses try to improve their position in the industry.

In order to gain new customers, competitors may reduce prices, introduce new products or substitutes, and increase marketing efforts. For example, on February 26,case study coffee, Starbucks closed its operations for several hours across the board to conduct employee training.

Dunkin Donuts took advantage of this opportunity to gain new customers. Dunkin Donuts offered a small latte, case study coffee, cappuccino or espresso drink for 99 cents from 1 p.

The types of food choices, pricing and restaurant ambiance create the diversity among competitors. Customers may choose among competitors based on preference. Pricing varies among competitors as well, case study coffee. Starbucks pricing is considered to be higher than average. The ambiance among the competitors varies from a fast-food chain where the objective is to get fast service, while the coffeehouses ambiance is slow-paced and relaxed. New entrants can increase the fight for market share, lowering prices, and the profitability of an industry.

Some existing competitors can retaliate against new entrants to deter them from entering the industry in the first place. Economies of scale refer to the decline in unit costs as absolute production volume increases.

Starbucks can take advantage of reduced unit costs due case study coffee its specialization and expertise through volume purchase discounts from their supplies. Starbucks retail stores can generally be found in extremely busy, accessible locations including being located directly off exit ramps to serve a wider range of customers and promote brand awareness. The stores can also be found in downtown and suburban retail settings, shopping malls, within office buildings and can even be found on university campuses.

Drive Thru stores continue to develop to reach non-pedestrian customers. Starbucks relies a great deal on information technology systems in the operations of its supply chain, point-of-sale processing, and many other business transactions. The management of these transactions greatly affects the production, distribution, and sale of its products. Any technical failure within these systems can cause delays in sales and decrease efficiency.

Starbucks utilized its Human Resources to its full capacity. Employees are required to follow Starbucks comprehensive store operating procedures and attend training classes. Starbucks realizes that its growth depends considerably on the knowledge, skills, and abilities of key executives and other employees and its ability to recruit and retain those employees.

Government policy exists to manage entry into an industry with licensing requirements regulations. Opening a coffee shop or restaurant will require obtaining certain licenses, i. Despite all the barriers or obstacles associated with entry, the most significant barrier to entry is catching a niche market. Name brand franchises have ultimately captured most of the market share because of their own personal niche. Looking for atmosphere, case study coffee a place to hang out, for velvet sofas.

His genius understanding is that: modern brand-building is at least as case study coffee about the customer experience as it is about the actual product.

The threat of substitute products or services that are produced in another industry that satisfy similar needs. Starbucks experiences a high threat of substitution because any new product could be the start of the next consumer trend or craze, creating an initial high demand for that product.

The highly caffeinated drinks such as Monster and Red Bull have certainly proven to be big sellers among consumers. Some former coffee drinkers now prefer to get their caffeine from the energy drinks rather than through coffee products.

Soda also contains caffeine and can serve as a substitute for coffee. Water can also be a substitute product as adverse public or medical opinions about the health effects of consuming caffeine continue.

While Starbucks has a variety of beverage and food items that are low in caffeine and calories, some of the other products contain high fat and calorie count have been the focus of adverse health effects.

 

 

case study coffee

 

CASE STUDY: STARBUCKS KATHLEEN LEE 5 Above is the Boston Matrix. It shows the cash cows as the regular Starbucks line of Coffee’s, Latte’s and Frappacinos found at nearly every location. Aug 14,  · Case Study Coffee opened in a space formerly occupied by a coffee shop, but has opened with new decor, updated atmosphere, and prompt and friendly service. Everything is new and the coffee fresh and solid/5(). Mar 06,  · Get directions, reviews and information for Case Study Coffee in Portland, OR. Case Study Coffee SW 10th Ave Portland OR Reviews () Website. Menu & Reservations Case study. Thank you for: 1. Vegan options, and 2. The best cup of coffee in my life. Read more. 08/23/ Whitney P.4/5().