Starbucks Delivering Customer Service Case Solution

Case Solution

This case is supported having a Video Short for Premium Instructors to demonstrate in school. To uncover the shocking truth or display to students, click on the video icon. Local coffee shop, the dominant niche-coffee brand within the US, must respond to recent general market trends showing the organization is not meeting customer anticipation if this involves service. To enhance customer happiness, the business is talking about an idea which will mix labor inside the stores and theoretically increase speed-of-service. However, the end result in the plan (which might cost $40 million yearly) round the company's point is unclear.

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Questions Covered

1. What factors accounted for the extraordinary success of Starbucks in the early 1990‟s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? 

2. Why have Starbucks‟ customers satisfaction declined? Has the company‟s service declined, or is it simply measuring satisfaction the wrong way? 

3. How does the Starbucks of 2002 differ from the Starbucks of 1992? 

4. Describe the ideal Starbucks customer from a profitability standpoint. What would it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Starbucks? 

5. Should Starbucks make the $40 million investment in labor in the stores? What‟s the goal of this investment? Is it possible for a mega-brand to deliver customer intimacy?