Starbuck'S
Executive Summary
Starbucks, amidst all of its growth, has encountered a dilemma. Research has shown that Starbucks is losing its luster with its key customer segments and service appears to be the culprit. Specifically, speed-of-service. This is not the time to have a customer crisis. Starbucks is poised for continued strong growth even with the current recession facing the U.S..
The coffee category is growing and Starbucks plans to grow and dominate the category into the future. Up until now, Starbucks has been the only national coffee player, but Dunkin Donuts, and others are starting to get into the coffee business.
As Starbucks continues to analyze their research data, and focus on their customer segmentation strategy, they discover something new. Maybe the customer service issue isn’t all about speed. Maybe, just maybe, it is as easy as just saying, “thank you” to their customers
Situation Analysis
The Broad Environment
In 2002 the United States is still mired in the post 9/11 aftermath. One of the most evident effects of this is the current recession that faces the country. The economy has been sluggish since 9/11 and corporations are seeing profits decrease. Companies that have a strong urban presence are faced with high labor rates especially when compared to rural or suburban markets.
On the political front, American’s are concerned about the economy and the raising cost of healthcare. Politicians are busy trying to find ways to jump start the economy as most Federal and State budgets are being over spent or cut, leaving the consumer concerned about increased taxes and a loss of disposable income. Healthcare cost are rising at a dramatic rate and the consumer is being asked to pay more out of their own pocket as corporations can no longer afford to foot the majority of the cost. Many entry level or administrative positions are having...
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