Starbucks' corrective wave is more complex
THE success enjoyed by Starbucks today can be credited to its founder, Howard Schultz, whose vision of providing Espresso in a takeaway cup kickstarted the company's journey to success.
Today, Starbucks is more than just selling coffee. It has established itself as a lifestyle brand and personality cult whereby a cup of Starbucks in hand is iconic of a successful business executive. The most recent breakthrough occurred when the company entered China, a tea-drinking country which has since turned their mouths to coffee, especially among the younger generation. Since its break into the Chinese market, Starbucks' revenue is generated mainly from the newfound economic powerhouse China, second after the United States.
Starbucks also had its share of ups and downs when Mr Schultz left the company in 2000 and was succeeded by Orin Smith. Things started to go downhill from 2001-2008 due to a wrong business strategy of over-expanding, which compromised the quality of its service. At the height of the financial crisis in 2008, Mr Schultz came back and began an extensive reform, which included the infamous move of closing every single outlet in order to re-train its baristas. Since the makeover, Starbucks turned its business around and its share price has grown exponentially over the last seven years.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Prudential shutters Hong Kong wealth unit Pulse
Singapore has to be realistic on global trends plaguing its stock market: DPM Wong
Google DeepMind unveils next generation of drug discovery AI model
AEM Holdings Q1 net profit tumbles 85% to S$2.4 million
World’s biggest tea buyer Lipton’s sale of last farms is a strategy shift
JPMorgan, Nomura limit Segantii exposure on Hong Kong case