Sunday, November 20, 2022

Starbucks - The Strategy Lesson


#starbucks  - The strategy Lesson.

Starbucks was founded in 1971 by 3 friends (not including Schultz), selling dark roasted coffee.

In 1981, Schultz joined the company and started his italian tour of studying the coffee bar culture there.

Schultz was awed by the grace and flair of Italian coffee bars, where expensive coffee was served in a relaxed social setting.

In contrast, coffee culture in US was comprised of cheap, bland coffee.

Post his trip, he made a hypothesis - The Italian espresso experience could be re-created in America and the public would embrace it.

He then started testing this by setting up the first espresso bar in seattle.

He realized that American preferred table chairs vs standing bars in Italy. He changed the furniture.

He realized that they wanted coffee on the move and not in fancy cups unlike italy. So he introduced paper cups.

And many more such variations while doing hypothesis testing and refining ideas basis results; its what it is today-

 An american original.

#Strategy is not just a static plan; its much closely knitted to the ground actions warranting perennial refinement and tweaks.

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I write regularly on topics linked to marketing/consumer and habits/productivity. 
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