Analysis of Starbucks

Running head: ANALYSIS OF STARBUCKS
SOUTHERN CROSS UNIVERSITY
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Signed
:
YASODHARA SOORIYAARCHCHI
Student Name: YASODHARA SOORIYAARACHCHI
Student ID No.: 23013395
Unit Name: SERVICES MARKETING
Unit Code: MKT10724
Tutor’s name: JILL GILLIGAN
Assignment No.: 01
Assignment Title: CASE STUDY - STARBUCKS
Due date: 27 JUL 2018
Date submitted: 27 JUL 2018

1
ANALYSIS OF STARBUCKS
(please
type your name)
Date: 27/07/2018

2
ANALYSIS OF STARBUCKS
Answer to Question 1
Starbucks was established by three entrepreneurs namely, Gordon Bowker, Jerry
Baldwin and Zev Siegl. The period in which Starbucks had started its operations a huge price
war had started in the American coffee market. The company had started its operations as a
retail store which offered different kinds of coffee beans and brewing equipments. After the
appointment of Howard Schultz in the organization Starbucks had started with a new idea of
offering brewed coffee to the customers. The company also aimed at providing the best levels
of services to customers and an ambience which can create a different effect on them
(Starbucks Coffee Company. 2018).
Starbucks can be considered to be a service (intangible) that is provided to the
customers for the purpose of creating an ambience which is unique in nature and Starbucks
can also be considered to be a product (product). Starbucks can be considered to be a service
as the organization aims at providing a positive ambience to the customers. The organization
is mainly famous for the services that are provided to the customers rather than the specific
products. The service based concept was introduced by Howard Schultz in the year 1987. The
new President of the organization further aimed at reshaping the image of the organization
which was helpful for its future growth. The logo of Starbucks was updated and the service
was mainly shaped in such a manner which would be a blend of the Italian elegance and the
American informality levels. The strategy that was implemented by Schultz in the
organization had paid off highly. The revenues of the organization in the US coffee market
had also increased in the process (Bienstock, Mentzer and Kahn 2015). The company started
expanding all over the world in a rapid manner. The success and expansion of Starbucks in an
effective manner has proved that the services that have been provided by the company to the
customers have been able to provide a position to the organization. The service oriented
approach of the company has proved to be the most important factor behind its immense