Global Coffee Companies, Research Paper Example

Starbucks did something no other company ever did they tried to rationalize coffee making. How did they do this? A coffee in star bucks is the same everywhere you go in the world. They tried to  make it have the same all over the world and tried to make it into a culture as opposed to a fashion trend and that way they cornered the market the other strategy they employed was that of the meeting. They made it possible for people to have meetings in a private place without the formality of having a office, for that matter they eliminated the need for alcohol on the meeting.

They also have a very serious cooperate social responsibility wing that seeks to win the people over. People in south East Asia as well as Australia look at what a company is doing to for instance protect the environment which is dear to their hearts. The other key factor was the management team that was the best not only in the industry but also in the region that they entered into. The management team brought all the skills and the knowledge of the cultural innuendos that each region has and the company adapted themselves to these situations.

Furthermore by Starbucks trying to own the entire process form the roasting of the coffee to the cup, they ensured that they did not get uneven quality of the coffee. (Schultz pg99) Star bucks also offered a variety of products. They offered takeaway instant coffee and it is widely available in supermarkets of all the countries it has entered thus ensuring that it will have mass appeal. Not only can you have coffee at their establishment you can take some home and enjoy the Starbucks experience. By staffing the coffee shops with young people and seeking their input in coffee shop design they have ensured that their stores remain hip and trendy. As they entered each city they used it as a hub in order not only to study the market but as a launching pad for an entire region. (Schultz pg97)

Each store location is selected carefully so as to maximize the market penetration and increase awareness of its products. They used every means available to them to increase this awareness. They are catering services, restaurants, campus cafes, via mail or online distribution strategies you name it they use it. However this said they attain most of their profits during the holiday season for they have identified a niche market the world over. Everybody of every culture like to relax and spend some free time with friends. They slotted themselves in and included, “ why not over a cup of coffee?”  (Behar pg87) Over the centuries from its Ethiopian roots to Arabian merchants that made the western world know it its culture has a universal appeal.

They have also been moving away from Europe as the mean age is increasing and disposable income in the United States  has declined the have looked to Asian. With half of the world seven billion population and a growing middle class penetration into this market will ensure healthy profits for many years to come.  All in all Star Bucks has outdone every competitor by understanding the customer and those who seek to outdo them must understand the needs the consumer better than them. As well as be willing to go into markets no one has ever gone to before and introduce a culture that has been loved for literally thousands of years.

References

Behar, Howard with Janet Goldstein. It’s Not About The Coffee: Leadership Principles from a Life at Starbucks(2007).

Schultz, Howard. and Dori Jones Yang. Pour Your Heart Into It: How Starbucks Built A Company One Cup At A Time (1997).

Pendergrast, Mark. Uncommon Grounds: The History of Coffee and How It Transformed Our World. London: Texere. (2001).