Case Summary: Starbucks Starbucks is a successful marketing story where co-founders created, marketed, and deliveredcoffee experience in a remarkable way (Simmons 75). Starbucks created premium products and romanced them with compelling stories thus making customers feel part of the special. The company blended different coffee brands to produce a product with a perfect taste for the enthusiasts. Schultz did a thorough research in Italy and came up with local style coffee design shops that never existed in America before. The company also leveraged its marketing activities to focus on quality, publicity, and quantity thus making Starbucks a success (Simmons 75).
The advertising of the product was rather romantic, and the slogans soon became common with Americans. In 2007, the company gave up the new tall brewing machines that never gave customers the chance to monitor the preparation method. However, the company maintained the new grains attract customers due to the delicate smell. Besides, the company had to close 600 stores in the year 2008 and also gave up 300 stores come 2006 as a way of overcoming financial crisis (Simmons 82).
The period marked the launching of the internet project that welcomed ideas from customers and employees of the company in a bid to brainstorm best ideas for improving the Starbucks as a brand. Until the return of Schulz, consumers complained of the loss of initial spirit romance had changed and many local coffee businesses like McDonald’s and Dunkin’ Donuts came with relatively cheaper coffee shop products and this changed the face of competition. High operation costs are one of the internal issues facing the company implying that the high cost of selling goods may affect its competitiveness.
Moreover, the company’s high prices may affect its competitiveness (Simmons 75). Other external issues revolve around improper integration operations including its slow flexibility, responsiveness, and integration. However, the company is facing competition from new market entries like McDonalds as well as stronger buyer and supplier power. Work CitedSimmons, John. The Starbucks Story: How the brand changed the world. Marshall Cavendish International Asia Pte Ltd, 2012. Print.