Strategic Organization of Starbucks
Founded in Seattle Washington’s Pike Place Market in 1971, Starbucks has positioned itself to be the long contending leader of coffee. In fact, their very mission is to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” At first blush, it would seem as though Starbucks is taking a congenial approach towards being a brand that one can count on. To the contrary, congeniality did not make Starbucks the juggernaut of a company, coffee or otherwise, that they are today. Starbucks domination of the market is a direct result of their prowess to provide a great product all the while capitalizing on a product many Americans depend on daily.
In fact, according to a competitor “Coffee is the second most consumed beverage on the planet after water. It’s the second most traded commodity after oil. People at work and home drink coffee all day, every day in almost every country around the world”. To that end, it is no wonder why Starbucks aggressively markets its product. Starbucks has single-handedly revolutionized the way in which America, and the world over, consumes, buys, and even orders its coffee. Upon closer review, one will notice that each and every decision Starbucks makes is a calculated effort to garner more and more of the market share.
First we will examine Starbuck’s marketing strategy. Starbucks has forgone the conventional style of marketing. Instead it has relied on word of mouth its quality product. It is important to note that rarely does one see a Starbucks ad in a billboard, ad space, newspaper or poster in places where you can expect to see advertisements for most other establishments, even huge ones like McDonalds. This is primarily because the company relies on building a relationship with its patrons. Accordingly, Starbucks are strategically positioned in high traffic areas