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Term Case Assignment

Term Case Assignment

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Published by nengin

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Published by: nengin on Jun 07, 2010
Copyright:Attribution Non-commercial


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Starbucks Experience andSocial Media
Being a barista on the internet
In the realm of global economic crisis, Starbucks had started to experiencelosing revenue and shifting market segment from High income, well-educated,white-collar professionals between the ages of 25 and 45 to youngergeneration. The newer customers were younger, less well-educated, and in alower income bracket- than their more established customers- had lessfrequent visits and a different perception of Starbucks. Starbucks had lost theconnectionbetween satisfying customers and growing the business underthreat of global economic crisis. This was the big concern which had beenexpressed that Starbucks lost communication between market segments andtheir relation with each other. Starbucks experience depends on translation of their confusion to the customers by using online social media tools to involve inthe community and search out, get advice for new product offers and buildstrong relationship over the social media to recover the Starbucks experienceas it was in store environment and it will be always.In the following chart shows the revenue performance during different periodsfrom 2008 to 2010.
Starbucks Experience and Social Media
Totals10383.09774.6Comparable Store Sales Growth(Company-Operated Stores Open 13 Months or Longer)(LLP, 2009)B.Situation Analysis (SWOT)Strengths
Starbucks one of the most recognized and respected brands in the world
Innovative and willing to spend on R/D
Premier roaster and retailer of specialty coffee
Good relationships with coffee suppliers
Value employees and supports them with training and education
The product is strongly differentiated from those of rivals
Good supply chain management
Better product quality relative to rivals
Well-developed IT source and management
Having more expensive price than the competitors
Starbucks Experience and Social Media

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