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Starbucks in 2012

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STARBUCKS IN 2012
EVOLVING INTO DYNAMIC GLOBAL ORGANIZATIONS

INTERNATIONAL BUSINESS POLICIES & STRATEGIES
FALL QUARTER 2014

MARIA FERNANDA SVENSON CASTELLO
SUMARY

1 – EXECUTIVE SUMMARY

Executive Summary

Is Starbucks, the famous coffee brand name, a global premium coffee? The answer that cannot be denied is YES. However, another question raised up is: “How did Starbucks get it?” To find out the answer for the second question, we have to look at its strategy.
First and foremost, it is claimed that Starbucks has used broad differentiation strategy. From the beginning, Schultz chose top quality, fresh-roasted, whole-bean coffee as the company’s differentiating feature and bedrock value. After 1983 trip to Milan, recreating the authentic Italian coffee bar culture in the U.S was the additional differentiating factor. The ideas of how to design stores were started in 1991 that Starbucks formed a project team called “stores of the future” to in charge of bring out new ideas to decorate each Starbucks stores. They came up with 4 stores designs that each has its own color combination, lighting scheme and component materials. Schultz’s ambition was to create a “third place” that everybody can feel comfortable to meet friends, family … and it also has to be environmental friendly.
Moreover, in this period of time, Schultz started to expand Starbuck’s products offering in order to make the products more accessible to customers and also to entered new market segments. Thus the first initiative is the establishment of a sale group in order to marketing its products to restaurants, airlines, hotels… Then, Schultz decided to co-operate with PepsiCo to create coffee related products that were distributed by Pepsi channels. Following up that event, Starbucks started to partner with others brand in order to boarder its market. In 2008, Starbucks began to offer

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