The biggest coffee company in the world, which is Starbucks, did not start as a coffee company but with something quite different. Starbucks was established in 1971 in Seattle. Initially it was a coffee beans dealer and seller of coffee, tea and spices. Jerry Baldwin, Zev Siegl and Gordon Bowker are the pioneer founders who had a vision to build a great company that involved sales of top quality beverages. Therefore, they were just aiming at passing their passion of coffee and tea to those people without necessarily having to open a cafe.
The early days of Starbucks
Early history of Starbucks involved selling gourmet coffee beans and equipment . It was not until its 9th year of establishment that the company started serving coffee drinks. The shop attracted many people who were interested in coffees, the brands grew to four outlets in decades. Individuals appreciated their merchandise nonetheless a form of revolution was imminent. Here are the steps of Howard Schulz, a man who makes Starbucks the world largest coffee selling company.
The Man Responsible for the Change: Starbucks
Howard Schultz was born in 1953 in New York, United States of America. He has problems in his childhood since he is from a working class family and there were financial difficulties in his life. Both his parents were employed, but migrating to another town his father got into a bad accident and became jobless thereby increasing the family’s suffering. However, through all these difficulties, Schultz was able to make good results in academics and finally got a job as the General Manager of a kitchenware manufacturer.
1981 is notable for the fact that Schultz paid a visit to Starbucks and he was immediately wowed by the prospects of the business. He joined the company that was on the right track during that period. He saw the possibilities of developing the company to a coffeehouse where people could get not only coffee but other products and services as well.
The Turning Point
It is notable that when Schultz tried to share his ideas on what Starbucks ought to be with the Starbucks owner, they were a little skeptical. Companies were thus complacent with such a business model and did not want to change. These frustrations forced Schultz to resign from Starbucks in 1985 after which he ventured into establishing his own coffee as II Giornale which proved successful. After three years, in 1989, when Starbucks was shown to be available for sale, Schultz took the opportunity to buy the company.
Rebranding and Expansion
Once Schultz bought Starbucks, the major strategy that he sought to implement was image rebuilding. He brought in the espresso bar format and set out to give a warm acceptance. The vision for Starbucks was to create the third palace where individuals would go to have good quality coffee and also interact. This strategy proved fruitful and the brand started acquiring popularity in the shortest time possible.
However, Starbucks faced challenges. Unfortunately, in 2007 the world economic crisis came and the unfortunate company faced tough times. NNS has stores over 3000 in numbers worldwide and many of these outlets were at risk of being closed.
Global Presence: Starbucks
Currently, Starbucks has outlets over 6000 all over the world; the firm must open almost 1500 new shops every year. It has also expanded over the years and enjoys a competitive advantage due to some remarkable factors that include. Its creativity, quality consciousness, and orientation to customers. Starbucks has basically transformed into an icon as far as coffee is concerned around the world.
Lessons from Starbucks
Starbucks’ success story is a good example of how the availability of challenges and the ability to change and create is crucial. Again challenges should be understood as an opportunity for development . The ability to evaluate the work and introduce changes can guarantee success. This makes the success story of Schultz demonstrate that great obstacles are surmountable no matter how difficult they may seem.
Conclusion
This is no longer a coffee company, it has become an epithet of how an idea with proper motivation and direction can create something worth billions of dollars. While succeeding with dozens of stores in diverse locations across the world, Starbucks retains its identity of the initial establishment.
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