Counter Point sample essay
Starbucks is one of the most successful business serving coffee and drinks beverage. Starbucks is known for serving hot and cold coffee beverage with a high quality products. Starbucks went public in 1992 with a priced at $17 share and the stock jumped to $21 at the opening bell. By 2007 Starbucks had become one of the most widely recognized and admired global brands. In addition, by 2008 Starbucks has 4500 locations in 43 countries out side the United States. Overall Starbucks known as a good business with a good standing.
Starbucks has many problems starting with the price. Starbucks coffee is more expensive than other competitors like Dunkin’ Donuts and Caribou. In addition, Dunkin’ Donuts offering drinks at prices 20 percent lower than Starbucks. For example, Kathleen Brown, a 30-year-old Boston lawyer, used to treat herself to a $4 Starbucks Caramel Macchiato but switched to Dunkin’ Donuts. Also, she mention that with Starbucks price for a cup of coffee she can buy a cup of coffee with a sandwich from Dunkin’ Donuts. Moreover, Starbucks did not pay attention to the customer comment cards and they did not respond to their customers needs or their feedback about the product or the service.
Starbucks should ask the customers about what type of milk they want. Another problem is that Starbucks used to offer just hot beverage and they thought cold coffee like Frappuccino was not a true coffee drink. After Starbucks knew their competitors were offering a cold beverage they started to serve cold beverages and they tested their concoction with customers and again customers approved. Moreover, Starbucks stores were reconfigured with fewer comfy chairs and less carpeting making Starbucks a less inviting place in which to linger over a cup of coffee. In the beginning Starbucks had a problem and they could not advertise because the cash was tight. Finally, Starbucks machines were so tall that the customers could no longer see the coffee being made.
Starbucks need to work to reduce the price of their products since most of the people from the middle and low income cant offer their products. If Starbucks want to increase their sales and earn more profit they should reduce their prices to let the people from all class can offer their products and be satisfied but Starbucks did not do any changes to their prices because there vision was to educate consumers about fine coffees and brought from a good place. Starbucks did lots of thing to increase their profit and to be more successful. For example, Starbucks opened many stores and some times in the same area just to help to serve the customers in a good way. For example, Starbucks opened many store to help the customers get what they want in a short time. Starbucks had learned that nearly stores did not necessarily hurt one another’s sales and in fact could actually help. Moreover, more stores meant a better chance for customers to find a short line or empty parking space and for Starbucks to capture the sale.
Also, Starbucks open a drive through service to help the parents with young children and the drive through help Starbucks earned more profit and be more successful. Starbucks choose their store location by focusing on the are population and a matrix of regional demographic profiles and an analysis of how best to leverage operational infrastructure. In addition, Starbucks planned at least one big community event to celebrate its arrival and offer two free drink coupons with the note asking the customers to share Starbucks with a friend. In addition, since Starbucks know that there prices was high so they try to offer a seasonal offering such as a strawberry and cream Frappuccino in the summer and gingerbread latte at Christmas.
Starbucks did not want to loose their money and workers so they developed a 24-hour training program converting Coffee Knowledge (four hours). Brewing the Perfect Cup (four hours), Customers Service (four hours) and also basic skills. Starbucks wants to have a good working environment and to be loyal to their employees so they provide their employees with a health insurance to all partners even the part-timers. Keeping the same employee with a full benefits would cost Starbucks $1500 rater than loosing $3000 to train a new hire. Starbucks work to develop their product mix by adding music and book to their customers.
Starbucks knew their prices are expensive and they did a great thing to solve this problem by opening many stores and provide a nice atmosphere to their customers by serving many kinds of snack, cold and hot beverages, sandwiches. “ Customers say one of the reason they come to Starbucks it because they can discover new things, a new coffee from Rwanda, a new food item. The solutions that I considered is Starbucks need to pay attention to their customers feedback for the price of the product and to try to make their price reasonable to the people over the whole world. Since many people like the atmosphere in Starbucks and its more fancy than Dunkin’ Donuts but the price in Starbucks need to recognized and reduce.
There are many solutions I recommend to Starbucks. First, the most important is the price. Starbucks need to find a solution with their product price since their price is much more expensive than other competitors like Dunkin Donuts. Most of the people switch to Dunkin Donuts because their product mix are cheaper. Moreover, they should offer free refills to their customers and make sure to give their customers a chance to give their feed back on the product. According to the case Americans will never pay $1.50 for a cup of coffee. So because of that Starbucks need to reduce their price to be more successful.
In conclusion, Starbucks is a powerful business with a good product mix ( non coffee drinks, food items, music, books). Moreover, Starbucks has many stores and sometime in the same area just to help their customers to get their need in a very short of time with offering their customers a drive through service and that cause the profit of around $1.3 million compared to $1 million at stores without a window. But the price of their products is so expensive than Dunkin’ Donuts.
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