Starbucks Case Analysis - Essay Example

Numerous companies have sensed the competitive demands of Starbuck’s differentiated strategy. According to some economic analysts, Starbucks has influenced the world market and they have made to coffee what McDonald’s have made to fast food. In such circumstances, it is probable that even Starbucks is not generating profit but through rapidly obtaining market share it is in a status to hang around for competitors to experience financial problems resulting in the beginning of consolidation.

Profit is starting to decline because of the weakening in sales. Customer satisfaction has declined which is manifested in the sudden drop of customer visits. Its stock price has plummeted. There was a sudden downward change in customer experience. These issues, and others, are troubling Howard Schultz as he attends to the various needs and demands of the company. On January 30, 2008, in a press junket with Wall Street reviewers, Howard proclaimed his commitment to initiate a revolutionary change through “reigniting the emotional attachment with our people and our customers” and “sharpening our competitive advantages of… passion, curiosity, community, commitment and authenticity” (Business Wire, 2008, para 1).

Several of the reasons for the sudden impact of negative trends to Starbucks are accountable to its customer service. One, there always appears to be a long stand in line at Starbucks; consequently, the crew members appear haggard and stressed out. Second, their coffee became weak and distasteful; their cappuccino tasted like water with milk. Third, the ambiance of their shops and the attractiveness of their brand name lose their customer appeal. And lastly, employee turnover increased in an unprecedented manner.

In order to analyze comprehensively the current Starbucks economic status, it is important to have relevant data or information on various components of strategic customer-driven approach. Internal