INTRODUCTION

One way that a company can beat another company in getting sales is by having a superior
business location. Marketers want to get a location for their store that is easy to access and
convenient for shoppers. Companies want a location for their factory that is readily to
accessible to suppliers and distribution channel, as well as supply of workers.
Realizing the importance of the location in the global sourcing scenario, organizations are
moving from an ad-hoc perception-based eercise, to looking at location selection with a
more structure view-point. !he primary driver for the location selection was cost, however
cost now being a given other dimensions including talent availability, long-term
sustainability, culture compatibility, etc. have also been factored in.
Starbucks started business around "#$" as a roaster and retailer of whole bean and
ground coffee, tea and spices with a single store in %eattle&s 'ike 'lace Market. !he
company purchases and roasts coffees that it sells, along with handcrafted coffee, teas and
other beverages and a variety of fresh food items, through Company-Operated stores
operating in () countries. *t also sells a variety of coffee and tea products and licenses it
trademarks through other channels, such as licensed stores and national foodservice
accounts. +s of %eptember ,), -)"-, it operates #,.)/ Company-operates stores and 0,(("
licensed stores. *t has four segments1 +mericas, 2urope, Middle 2ast and +frica 32M2+45
China6+sia 'acific 3C+'4, and Channel 7evelopment.
!he reason why %tarbucks is being selected for this write-up is because it has received
numerous accolades from all around the world. +mong the recognitions earned include1 -
89o. " :est Coffee, ;ast ;ood and <uick Refreshment= categories by >agat&s %urvey of
9ational Chain Restaurants 3-))#--)""45
89o. " Most 'opular <uick Refreshment chain= by >agat&s %urvey of 9ational Chain
Restaurants 3-))#--)""45
One of 8!he ")) :est Companies to ?ork ;or by ;ortune 3"##0--))), -))---)"-45
One of the @Most +dmired Companies in +merica= by ;ortune 3-)),--)"-45
One of the 8?orld /) Most *nnovative Companies by ;ast Company 3-)"-45
One of 8?orld&s Most 2thical Companies= by 2thisphre 3-))$--)"-4
One of the 8")) :est Corporate Citizens= by Corporate Responsibility6:usiness 2thics
3-))--)"-45
%ustainable 7esign +ward= by Alobal Areen B%++ 3-)""45
8Most 2thical Company, 2uropean Coffee *ndustry= by +llegra %trategies 3-))#--)""4
ANALYSIS
;rom only one store more than ,) years ago in %eattle to its still growing empire today with
thousands of outlets in the Bnited %tates and in foreign countries, the %tarbucks Coffee
Company is no doubt a well-known success story all over the world. %tarbucks gained its
competitive advantages through location strategies as follows1
Research is Conducted :efore Opening +ny %tore
%tarbucks takes a thoughtful and strategic approach when choosing their store
locations, carefully considering many factors including community demand. %tarbucks
always looking for great locations to both better meet the needs of their current
customers and to reach new ones. %tarbucks will study an area before putting store
there and based on things like demand, traffic and parking, they may conclude multiple
stores will serve customer better.
7ecision 9ot !o ;ranchise
%tarbucks chose not to franchise, which meant staying away from territorial franchisees,
who often want to limit new stores. %tarbucks decided not to accept landlord restrictions
either, believing demand for its coffee would eceed the capacity of any one store.
%tarbucks willing to pay higher rent instead of accepting terms and those deals helped
%tarbucks lock in prime real estate, leaving upstart rival at a disadvantage.
Market 2ntry
%tarbucks is always looking for the new developed area to meet customer reCuirements
and mark their territory. *t&s also depending on the purchasing power available in that
area to ensure better return on investments. + new location means a whitespace of
customers for the parent organization and therefore the parent may leverage the same
to establish a foot-hold to offer their own product6service offering in the enter new
markets.
'reservation of Culture
%tarbucks managed to nurture their drinking coffee culture to their customers while
preserving the origin of the culture of a country in which the store is located. *n fact,
%tarbucks also incorporate elements of the countryDs culture into their daily menu, as an
eample, during the celebration of Chinese 9ew Eear %tarbucks also offer moon cakes
as one of their menu.
!he Fey of %tandardization
?ith the high number of shops and much higher number of employees, it has been
necessary to introduce systems and processes to secure that the standards are kept the
same in all coffee shops across the country. !his has resulted in a high level of
standardization regarding uniformity in product range, shop design and service. +nd the
%tarbucks concept has been standardized to ensure customers always to have the
same eperience in every %tarbucks coffee shop.
---
2ngaging Customers ?orldwide through %ocial Media
+s one of the world&s most recognizing brands, %tarbuck is also building a leading
presence in social media. !he company&s /. million ;acebooks fans, ,.. million !witter
followers and #)) thousand followers on *nstagram have earned %tarbucks a number
one 3"4 ranking among socially engaged companies. :ut, %tarbucks& social media
presence has earned it more than Gust fans H the company also sues social media to fuel
customer-driven innovation. !hrough its My Starbucks Idea site, %tarbucks has collected
over /) thousand customer-submitted ideas to improve its products, customer
eperience and corporate initiatives.
BniCue of Resources
!he tangible assets are most easy to identify as they include financial resources, raw
materials, production facilities and real estate. %tarbucks purchase only the highest
Cuality of coffee beans from ideal coffee-producing climates. !hroughout the promotion
of eCuitable relationships with farmers, workers and communities as well as protection of
the environment, %tarbucks has improved its marketing ability and upgrades it supply
chain that turn basic resource to an advantage for meeting customer epectations of
Cuality roasted coffee. !his move secures the company&s supply-level. ;urthermore, it
makes %tarbuck&s price and Cuality more competitive 3differentiation strategy4 in the new
markets and worldwide coffee industry.
CONCLUSION
+ good location ensures not only efficient and seamless delivery of services and support, but
today also plays a crucial role in facilitating access to new markets and new market entry,
new product development, and innovation in process and services.
%tarbucks is leading the market because of their dominating global presence and product
differentiations. + customer&s eperience at a %tarbucks& location is arguable different that
any other coffee shop because of their intimate atmosphere, welcoming environment, and
genuine service. %tarbucks implemented strategy of retail locations and on-site partnerships
have received greater response rates, giving them the leading seat with the mature industry.
REFERENCE
:ruzelius, E. I Johansson, K. 3-)"-4. 2ntry into the coffee shop market-starbucks
establishes in Aothenburg. 3Master&s thesis4. Retrieved from
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Mee, F. 3-)",4. Case study1 starbucks coffee. Retrieved from
http166www.umuc.edu6library6libhow6apaLeamples.cfmNdissertations
-,-
'ost, ?. 3-))-, %eptember ,4, %terbucks& strategy1 locations, locations, locations,%t.
'etersburg !imes Online. Retrieved from
http166www.sptimes.com6-))-6)#6),6:usiness6%tarbucksLLgrowthLstr.shtml
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