It Project, Starbucks---Regain the in-Store Starbucks Experience

Background

Founded in Seattle in 1971 by Jerry Baldwin, Zev Siegl, and Gordon, and inspired by small local coffeehouses operated in a few neighborhoods, Starbucks first sold fresh roasted, gourmet coffee beans and brewing and roasting accessories during the late 70s. Then everything changed in 1982 since Starbucks hired Schultz as the new head of marketing and shortly sent him to Milan to attend an international housewares show in Italy (The history of Starbucks). Schultz was struck by the city’s ubiquitous espresso bars where served well-prepared coffee and were important places for meeting and relaxing (Starbucks: A story of Growth). Then Schultz left Milan with an idea of creating similar coffee shops for socializing and relaxing in America. However, because senior management team did not accept this idea, Schultz left Starbucks to open Il Giornale to sell espresso, espresso-based drinks, food items, and whole-bean coffee as well. Although this concept was very successful and the coffee shop attracted 1,000 daily consumers within six months, Schultz was not able to raise fund from potential investors who were concerned about the lack of sustainable competitive advantage of Il Giornale.

In 1987 Il Giornale acquired Starbucks. The new Starbucks were redecorated to become elegant, comfortable coffee shops. By 1997, the number of Starbucks Coffee stores grew tenfold, with locations in the United States, Japan, and Singapore. In 1999, Starbucks launched the initial public offering and then went public. Now it becomes an international corporation with more than 9,000 locations in 34 countries serving 20 million customers or more a week. (The history of Starbucks).

Starbucks Expands (1996—2008)

Starbucks expanded dramatically through two ways, selling Starbucks products through mass distribution channels and expanding its retail footprint (Starbucks: A story of Growth). Through mass distribution channels, Starbucks increase its market penetration by offering...