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Business Strategy: Starbucks

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Today, Starbucks Coffee Company is the first world mark in the retail sale of coffee with more than 8,345 stores distributed between North America, the Latin America, Europe, the Middle East and the Pacific region.

At the beginning of the adventure, Howard Schultz took advantage of the fact that the Americans had reduced their alcohol consumption to make the "coffee bars" their new destination.

Looking at the coffee house as an extension of the house, Schultz was inspired to create a third place somewhere between home and office in the United States. Starbucks has therefore appeared as the first chain of "coffee bar", which allowed him to make a name and enter an untapped and unexploited market.

Thus in thirty years, the chain of espresso bars, recently established in France, and has triumphed in 32 other countries, this also includes China. Its ensign with the small siren appears among the first hundred brands of the planet, according to the Interbrand.

Starbucks invests each year less than 1.5% of its turnover in traditional advertisement. Compared with the majority of other retail chains, Starbucks portrays a very good image. One can even consider Starbucks to be connected with luxury by the quality of its products and a typical installation of its "coffee shops" as a comfortable, warm and intimate place.

To stand out, the brand is building on its image, maintained at great expense, of an enterprise engaged in the local and fair trade.
At each location, the brand has demonstrated a great capacity to adapt to the local culture. In addition, it always chooses places of high traffic and places that have a high frequency of footfalls, in the cities to establish themselves (such as France, where Starbucks has settled in Paris in the Montparnasse area,Odéon, St Michel, etc.)

The great challenge of Starbucks is that all its"coffee shops" are self owned. The group does not call upon any external growth and refuses franchise agreements. It wants to remain the master of its own growth, to keep a grip on the management of its staff and its image. Starbucks is very particular in standardizing the management of its stores.

In addition, Starbucks is intended as a company of sustainable development.
This is reflected both in its emphasis on the employees in its overall strategy and the effort put in towards humanitarian work.

However, the quality of coffee remains central to the politics of Starbucks Coffee. It is a real value which provides social guarantees, environmental and economic in the various countries in which the brand operates.

Starbucks operates throughout the chain of harvest grains in the marketing of coffee, and maintains an excellent relationship with its suppliers, vis-à-vis which it deploys a strategy of securing the area, and even gaining exclusivity, by establishing lasting relationships. These relationships are extremely important for Starbucks, which devotes considerable energy to maintain its privileged contacts. These allow it to remain constant in terms of quality and gives the production exclusivity.

Starbucks Coffee France SAS, which manages the Starbucks coffee outlets in France arose from the joint venture between Starbucks Coffee International and Grupo Vips. The latter, a Spanish group, is one of Europe's leading fast food chains and it operates several restaurant chains including the VIPS that is popular in Spain (shops and restaurants) and is currently the partner of Starbucks in Spain and France.

Starbucks often use this type of partnership when it is struggling to enter the market. Indeed, the group has several agreements with local partners in countries around the world.

Tags: Starbucks coffee chain, business strategy, marketing and brand analysis


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