Professional Documents
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Study Case-Starbucks Coffee Company
Study Case-Starbucks Coffee Company
Howard Schultz, its a former CEO of biggest coffee shop in the world. He was acquired the company in
1987. 20 years later, in 2007, Howard Schultz was no longer CEO of Starbucks. He is worried about the
company losing its core values, such as a sense of comfort, connection between barista and buyer, and
respect for its product and the communities Starbucks serves. On the opposite, the company seemed
more concerned with gross margins.
As a senior in the company Schultz made a memo to his collages about his perspective the phenomena
in his company. In it, he told about how the core value seems blurred ever since. Increasing the
economics, but robbed stores of some of their essential magic, such as the smell of roasting coffee, and
the soul of the past.Schultz also reminding the company, even though the expansion of the store is
major, and the potential commoditization of the Starbucks brand, he realize that it time to get back to
the core, and let people feel again the true Starbucks Experience.
In 2007, McDonalds and Dunkin Donuts had become a serious competitors, offering their own lines to
become a specialty of coffee beverages. Even though Starbucks revenues were up to almost 20.9%
(compared to 2006), but it had slowed by a number of transaction per store, from 5% (2006) to 1% in
2007. So after discussed with Wall Street analyst, Schultz returned as a Starbucks CEO.
Innovation : Customer Segmentation, Value Propositions, customer relationship, channels, key resouces,
key activities, partners
Partners :
From the start, Schultz sent the clear, unwavering message that Starbucks'
transformation would represent a return to its roots and an uncompromising
commitment to core values, such as health care benefits for any partners working
at least 20 hours a week.