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Starbucks is primarily a premium coffee shop industry and gets categorized under Snacks & Food Restaurants Industry for its wide range of products. The industry faced a heavy slowdown in 2009 due to the worldwide economic slowdown when most consumers preferred to buy low cost products and skipped eating out in order to shrink their budgets within their available income. In this research study, we are aiming to study the business model that the company adopted to see how much of its success was due to the same. We also propose to study the failures and obstacles it has faced so far in its growth story. (GeeReddy, 2012)
Any worldwide chain has its growth and decline story. But the Starbucks model offer wide scope for deep analysis right from its relatively short period since founding, its product range to see if it has any impact since they cater to the taste and preferences of its customers, its innovative marketing strategies, its customer relationship model such internet forums and last but not the least its competitors. With a wide of reach of over 60 countries, every year adding a few more to its circle, Starbucks has of late, forayed into Internet marketing and sales too, which makes it a truly global leader in its category. (Hora, 2008)
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