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The Success of Starbucks

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The success of Starbucks
Starbucks was born in 1971 as a small coffee shop. With the management of Howard Schultz, Starbucks turned into a business legend and built a kingdom of coffee. It was dominate specialty-coffee brand in North America. By mid-2002, the company was serving 20 million unique consumers in more than 5000 stores all over the world. It developed at a very high speed. The gross profit of the company increased from 730.2 million to 1938.9 million in about 5 years (1998-2002). Its retail business expansion was also amazing. In 1998 there were 1755 Starbucks’ stores in North America while the numbers increased to 4574 in 2002. It was also true of its international expansion. There were only 131 stores in 1998. But in 2002 there were 1312 stores oversea. Every why has its wherefore so was Starbucks' success. The three biggest reasons of the company success were its brand strategy, production innovation and retail expansion.
Starbucks' brand strategy contains three components and showed mixed benefits for customers. The first component was the highest-quality coffee. The company controlled the supply chain as possibly as it could in order to ensure the product quality. This was so called tangible benefit. The second component was the service which referred to "customer intimacy". It contained personal treatment and made the consumers feel like to be treated specially. It was a way to close the distance between the frontline employees and customers. It offered the intangible benefit. The third component was the store atmosphere. Starbucks was defined as the third place of life where people wanted to stay longer. Based on the definition, it formed its own store style and provided a universal appeal. And Starbucks also established close relationship with the nation coffee culture.
The product innovation was one of the most important attractions and

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