Succeeding going public in 1992, Starbucks' strong balance sheet and double digit growth made it a hot growth stock. The Starbucks vision was coffee culture the Third Area between work and home, as community, where friends shared the experience and exotic language of gourmet coffee. Its increase was fueled by rapid expansion in the number of stores both in the United States and in foreign markets, the inclusion of drive-through service, its own music label that promoted and sold CDs in shops and other add on sales, including sandwiches and pastries. In an amazingly brief time, Starbucks became a wildly successful global brand. But in 2007, Starbucks' performance slipped; the firm reported its first-ever decrease in customer visits to U.S. stores, which led to a 50 per cent fall in its share price.
Starbucks' growth strategies analyzed and have been widely reported, but scarcely with an eye to their impact on the brand. Analyzing the growth decisions made in the USA provides a rich context in which to examine both drawback and the assurance of additional foreign expansion.
Trouble Brews at Starbucks Case Study Solution
PUBLICATION DATE: January 22, 2009 PRODUCT #: 909A02-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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