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CaseStudy- Starbucks


Withoutany doubt, the company introduced an extremely expensive product (cupof coffee), but people still thought it was a good idea. Inactuality, people have become very accustomed to the brands andbeverage products of the company as the best in the market. Also, thecompany has managed to develop a sense of trust and loyalty among itscustomers. In fact, the company enjoys a good reputation for itsunmatched branded coffee products that remain distinctive in themarket. As such, customers are willing to pay a lot more for thecompany’s product (Chua, &amp Banerjee, 2013). Indeed, the companyis responsible for a coffee revolution that is apparent not only inthe United States but in the whole world. Nevertheless, it is moreimportant to note that the selling mechanisms of Starbucks offer asense of convenience to the customers. The products can be foundeasily online via the website www.starbucks.comand by means of mail orders. What is more is that the companymaintains immense levels of partnerships and joint ventures. Theresultant effect is that its products can be found in places likedrugstores, restaurants, hospitals, hotels, supermarkets and otherbusinesses (Chua, &amp Banerjee, 2013). Other than the actual costsof the coffee cups, the customers also enjoy excellent customerservice at the company. Moreover, the attractive and luxurioussettings of the coffee shops of the company make the customerswilling to pay more for the product. Undeniably, the relaxed andaesthetic atmospheres in the shops show that they are built anddesigned to be the “best of class.”


Itis no secret that Starbucks has experienced tremendous growth overthe years. It all started with a single and relatively small storeback in 1971 in Seattle, Washington. Currently, the company engagesin retailing and wholesaling coffee products in thousands of storesthat are found in a significant number of countries in the world. Akeen look at the growth of Starbucks shows that such occurs becauseof providing comfort food and comfort places for its customers. Onecannot decline to note that the employees of the company have muchreverence for good customer service. Additionally, they always seemmotivated due to being highly trained in their service delivery,implying a push on customers’ purchasing power (Mackey, &ampSisodia, 2014).

Overthe past years, Starbucks has developed its shops more to be able tooffer more products for customers including but not limited topastries and Tazo teas. The comfort places of the company also haveservices of coffee brewers and espresso machines, over and aboveother assorted items of the company’s trade. It has been noted bythe company officials that Starbucks is in the “people business”and not in the “coffee business.” Certainly, customers havealways been on the receiving end of positive experience in Starbucksshops as mentioned earlier in this paper. The employees are alsowelcoming and meticulous in their relations with customers. They alsooffer any needed information regarding the company’s passion anddedication to the coffee business (Gallaugher, &amp Ransbotham,2010).


Froma perspective of in-depth reasoning, Starbucks was not right in suingSambucks. The main reason for this position is that Starbucks is aworld leader in the coffee industry while Sambucks is a small-townsmall-scale business that poses no significant threat to Starbucks(Ferrell, &amp Fraedrich, 2015). Additionally, Sambucks has areasonable explanation for the source of its name, which in the firstplace, does not resemble that of Starbucks in a way that can beeasily confused. Personally, I feel outraged that Starbucks could goafter Sambucks and prevail with much ease because it has the enormousfinancial resources. In some ways, this shows that the rich willalways prevail over the poor and that service of justice is based onthe economic capacity of parties involved in a case.


Chua,A. Y., &amp Banerjee, S. (2013). Customer knowledge management viasocial media: the case of Starbucks.&nbspJournalof Knowledge Management,17(2),237-249.

Ferrell,O. C., &amp Fraedrich, J. (2015).&nbspBusinessEthics: Ethical decision-making &amp cases.Nelson Education.

Gallaugher,J., &amp Ransbotham, S. (2010). Social media and customer dialogmanagement at Starbucks.&nbspMISQuarterly Executive,&nbsp9(4).

Mackey,J., &amp Sisodia, R. (2014).&nbspConsciouscapitalism, with a new preface by the authors: Liberating the heroicspirit of business.Harvard Business Review Press.

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