Solutions and Suggestions After reviewing the case I believe there are some possible alternatives to fix the Starbucks situation. However, the brand image that has been created by Starbucks could not be met by many competitors but it also stands as a threat to the company. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources. The accelerated number of stores being built created a number of problems including the saturation the Starbucks Experience it so highly valued as well as a drop in sales due to competition with existing Starbucks stores in any given area. The challenging diagnosis for Starbucks Delivering Customer Service 3 and the management of information is needed to be provided. Once done it is time to hit the attach button.
Initially, fast reading without taking notes and underlines should be done. . Instructors should consider the timing of making the video available to students, as it may reveal key case details. Recent market research has indicated that the service level of Starbucks is currently not meeting the expectations of customers. In this model, five forces have been identified which play an important part in shaping the market and industry. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Starbucks can include basic necessities of life inside its stores.
Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. . After introduction, problem statement is defined. To increase customer satisfaction, the company is debating a plan that would increase the amount of labor in the stores and theoretically increase speed-of-service. They are willing to work together to achieve this similar objective.
However, resources should also be perfectly non sustainable. Customer retention can be increased by for example giving away special offers to loyal customers such as on every second visit the customer can enjoy a free cup of coffee just for the sake of customer retention. The taste should last in the mouths of the customers for a long period of time and whenever they hear about Starbucks the taste buds should be overtaken by the unique taste of Starbucks………………. This will mean more employees and potential risk of bigger turnover rate as the chance for promotion will be lower. Name: Section 1 — Understand methods of communication with customers 1a Use the table below to outline at least two different customer service situations and the different methods of communication that would be needed…. Therefore to select the best alternative, there are many factors that is needed to be kept in mind.
So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. These rules must be followed by the members employees and managers. Quelch Description: Starbucks, the dominant specialty-coffee brand in North America, must respond to recent market research indicating that the company is not meeting customer expectations in terms of service. However, introduction should not be longer than 6-7 lines in a paragraph. Whereas, the opportunities and threats are generally related from external environment of organization. Starbucks has to come up with an action plan to address this issue, considering its significant correlation and impact to sales and profitability.
Starbucks have gained the cost and performance advantage as it can increase the value of its through offering high quality product at lower cost and can maintain its performance. I will briefly summarize and examine issues facing Starbucks. Critique and analysis Being a multinational company expanding at a speed that leads thoughts towards badly imaged global corporation like McDonalds are these days not considered a strength. What data and records might be drawn upon to make plans intended to meet customer needs? It is considered a tea-drinking nation rather than a coffee-drinking nation. This value may create by increasing differentiation in existing product or decrease its price.
It also has a system of authority. The typical Starbucks customer was between the ages of 25 and 44 educated, affluent and predominantly female. Firstly, the introduction is written. This is partly due to the benefits that tea is believed to offer, which include medicinal qualities that coffee does not have. This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry.
Customer lifetime value has natural appeal as a marketing concept. What activities and assets did Starbucks leverage to differentiate itself from competitors? Moreover,Starbucks can introduce sensory branding as well and trigger all the five senses of a human being such as smell, touch, taste, sight and sound. Step 3 - Starbucks: Delivering Customer Service Case Study Analysis Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. Also, manipulating different data and combining with other information available will give a new insight. Besides that, I believe Starbucks customers are linked to the company because of its unique style created by Howard Shultz.