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Redefining Starbucks

九月 30 2011 Published by under EZ心情

Ever since 1971, Starbucks have a reputation of being a great place to work, social gathering, and roasting the highest- quality coffee beans beverages for millions of customers who went to Starbucks for coffee and for sense of community. But by 2008, after years of focusing on aggressive expansion, the traits that made Starbucks successful has lost its core values. Sales started to slide, stock priced dropped more than 42 percent. The company’s very survival is at risk. Former CEO Howard Schultz, who stepped aside for almost eight years made a comeback as chairman to stabilize the company and transform it by refocusing on their core values and reigniting the innovation require to thrive in a dramatically shifting marketplace, all while fending off harsh critics and huge competitors.

Here are the three strategic initiatives that Starbucks immediately undertake:

1. Immediate slow the rapid-fire pace of new store openings.

Starbucks was opening  stores to meet each quarter’s projected sales growth that, too often, picked bad locations or didn’t adequately train newly hired baristas.

2. To reestablish the unique experience customers have from the moment they walk into the store.

What separates Starbucks from their competitors is the sense of community and familial relationships they establish with their customers, but Starbucks has expanded too far outside its coffee roots and was diluting the experience.

3. Make long-term changes to the foundation of their business

Close examination of the organizational structure, operation, and revamping in ways that would reduce cost and improve customer service.

Unlike other brands, Starbucks was not built through marketing and traditional advertising. Starbucks succeed by creating an experience that comes to life,  because how they treat their people, farmers, customers, and how they give back to communities.

 

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