Starbuck

How does Starbuck’s of 2002 differ from Starbuck’s of 1992?

Starbucks has been expanded agressively during the past decade, after its IPO in 1992; Starbucks continues to expand at a rapid pace in term of number stores development. In 1992, Starbucks had only 140 stores in the northwest and Chicago but by the end of 2002, the company was now serving 20 million unique customers in well over 5,000 stores around the globe and was opening average three news stores a day. Starbuck had established as the dominant specialty-coffee brand in North America. Sales had climbed at a compound annual growth rate of 40% and net earnings had risen at a CAGR of 50%. Even though, internationally, the market segment is the regular and occasion coffee drinkers but what makes Starbucks differ from the past decade is the ability to blend-in and adapt its core products with countries of different cultures and tastes. As well as having the best real estate team in the industry gives Starbucks advantages to find location where highly populated and attractive.

Apart from the number of stores expansion, in 1994, Starbucks put high emphasis on the atmosphere and began to renovate its store layout, especially the seating areas. A coffee store with leather chairs, couches, magazine, newspaper with in-house music.This is a community place where customers not only come and drink coffee but also where customer could gather and talk, where customer could work or study rather than at home or the office. Starbucks also offer drive-through windows for customers who rely on time and convenience as well.

Moreover, Starbucks also successfully developed the brand outside of the store through a number of channels distribution. By building up relationships with companies with strong distribution channels enabled Starbucks to reach and offer variety of products to customers in a wider scale. For example: In 1994, Starbucks and PepsiCo entered into a joint venture agreement to offer a bottled Frappuccino...