For a buck

In the article” Starbucks—for a buck,” by Harris, the author explains that Starbucks competes with its competitors by providing the discount and free refills. First, Starbucks started selling the $1 cup of coffee and refills in Seattle in order to win back customers. The author says that because of the battle between Starbucks Corp and McDonald’s Corp, Starbucks has to provide the discount. Next, because of the share price dropped, Starbucks raised price for the second time in one year and after Starbucks fired its chief executive and brought Chairman Howard Schultz back, Starbucks shares jumped, since the Chairman points out that the company does not have enough “exciting” products. Then, Starbucks said that “testing is a way of life for us.” they have tested several kinds of products before. The author says that the prices are different between stores, so does competitors. To conclude, providing the discount and refills at Starbucks was well received and it makes the customer happy. In fact, some benefits should be provided to the customers in order to win the commercial competition.

Nowadays, every company in modern society faces the keen competition, especially Starbucks, the world largest coffee chain with 15,000 stores; the battle would be fiercer. In every area, each company will provides low price, discount, coupon, surprise activity, and customer service, however, these methods can not solve the basic problems, these statements can win the customers in a short time but it is not a long-term consideration. If they want to solve the principal problem, the reorganization of quality and taste is basically that they supposed to do. The outer packing should be change completely. Starbucks should avoid any business scandal to gain the credit from customers.

First, the reorganization of quality and taste is basically that they supposed to do. Starbucks start selling a $1 cup of coffee in some Seattle-area stores, it is a positive activity. Jackie Gehlen, who said she visits Starbucks about twice a month, said:” It sounds good to me because I think Starbucks is too expensive,” (pp 81). However, sometimes low price lead to poor quality. So that quality and taste should be guaranteed. In this way, this kind of promotion will become a main project.

Second, the outer packing should be change completely. The cups of Starbucks are almost the same style, a white cup with a trademark; that can not attract the customers’ attention. Variety of pack is a great magnet for customers. Therefore, Starbuck should change the packing, different types of people have varied styles. People may have a feeling that the cup is fashionable so that they want to follow it.

Finally, Starbucks should avoid any business scandal to gain the credit from customers. Credit is a necessary factor for a company. If customers think that Starbucks is unconvincing, no matter how attractive the activity is, no one wants to buy their goods. Commercial scandal often happens in a big corporation like Starbucks, although, it can influence the image of a company, if the company deals with it in a moderate way, they can win back a group of customers.

In conclusion, business battle is necessary, but do not make it worse. Starbucks has steady customer, malign competition only can harm the customers. Improve themselves is the only way to beat the competitors. Starbucks brought the Chairman back in order to choose the better strategy, good promotion activity and guaranteeing the quality are the pre-requisite for winning back the customers.

Reference

Harris, C. (2008,Jan 24). Starbucks–for a buck. SEATTLEPI. Retrieved Mar 28, 2008, from http://seattlepi.nwsource.com/business/348521_sbux24.html