How Starbucks’ Growth Destroyed Brand Values BusinessTerm Paper (Term Paper Sample)

How Starbucks’ Growth Destroyed Brand Values
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How Starbucks’ Growth Destroyed Brand Values
Starbuck coffee company is a functional firm from 1971. Howard Schultz is the CEO of the company. The firm is operating is based in the United States with numerous branches globally. The company has a robust number of workers, approximately 291 000 in the world. They deal in various brands of coffee, beverages, fresh food, among other products (Ryan, 2008). The company is selling its products across the globe in multiple forms such as groceries and stores. Some of their brands include; Teavana, ethos water, Seattle's best coffee, torrefazione Italia coffee and Starbucks Coffee. Starbucks is among the companies with respected brands in the coffee industry from its various awards. The company offers its quality product at the highest price comparing to other firms from other countries (Starbucks, 2004).
The aforementioned is the reason why the firm got a sharp blow during the 2008 economic downfall as the majority of the consumers chose cheaper coffee products for their daily use. As a result, the company went ahead to close 600 nonprofit shops (Quelch, 2008). The company had reduced 28% of their net profit compared to the 2007 financial year. The company laid approximately 6 700 workers as more store were yet to be closed. Management system under CEO Howard Schultz is one of the reasons why the firm is continuously showing poor performance in contrast to other firms in the same industry. With the extensive expansion, competition from other relating firms and the harsh economic condition forced the firm to drop down its operational stores (Husain, Khan & Mirza, 2014).
Reasons why Starbuck is providing "an Experience that is no Longer Special."
To grow, Starbucks increasingly appealed to grab and go, customers, for whom service meant the speed of order delivery rather than recognition by and conversation with a barista. Starbucks introduced new store formats like Express to try to cater to this second segment, without undermining the first. The firm had grounded itself in the market and therefore had the courage of that the consumers already accept them. But many Starbucks veterans have now switched to Pets, Caribou and other more exclusive brands (Nithin, 2014).