Starbucks succes

871 mots 4 pages
What made Starbucks hugely successful?

The dramatic explanation of Starbucks' prevalence in today's society says their success was due to the creation of a so-called "Third Place" culture.
In reality, it was because an entrepreneur who believed in strong operations management and having a central focus for everyone in the company to follow.
This was the long-term vision of Howard Schultz. He was well aware that developing this coffee culture successfully involves not only utilizing an impactful marketing strategy but also managing an efficient operating management system as well.
The Starbucks business plan, along with its organized functional plan, helped Starbucks create a near monopoly in the coffee industry.
With the variety and uniqueness of their products, Starbucks had such a commanding lead over its nearest competitor (yes, they have competitors).
The majority of the competitors consisted of small-chain coffeehouses, restaurants/diners, and coffee manufacturers who were picking up on the growing popularity of specialty coffees and had installed machines to serve espresso, cappuccino, latté, and other coffee drinks to their customers.
Caribou Coffee is the most prominent among the small-chain coffeehouses while McDonald's and Dunkin' Donuts are established eateries that recognized the trend of higher specialty coffee consumption. Kraft and Nestle are competitors that manufacture and sell their products primarily in grocery and retail stores.
What separated Starbucks from those other coffee competitors and drove their revenues was that the corporate strategy was pervasive throughout the entire company whether it is in operations, marketing, or financial management.
Setting objectives and charting the path to achieve those objectives are essential in bringing about the kind of growth that Starbucks had. Every corporate strategy begins with a mission statement.
Their mission statement states the following: "Establish Starbucks as the premier

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