Skip to main content

Globalizing Coffee Culture: The Case of Starbucks

  • 9529 Accesses

Part of the Management for Professionals book series (MANAGPROF)

Abstract

In the early 1970s, the U.S.A. was the largest coffee consuming country in the world, offering an enormous market potential for new entrants. However, a few large established players were already dominating the market, for instance Procter & Gamble. During the 1960s, P&G took over its competitor, Folgers Coffee Company, and started to distribute coffee under this brand nationally. Soon after, Folgers became the top U.S. coffee brand. Yet the business models of P&G and Folgers were fully different from the one envisioned by Starbucks: the incumbents saw coffee as a beverage like any other. Their value proposition was instant and roasted coffee, sold in supermarkets, and intended for home brewing. No efforts were put into establishing a genuine coffee culture, for which Starbucks later became renowned. Americans of that time also did not view coffee shops in the sense of a community, or as a socializing possibility, and Italian-style coffee bars were barely known on the home market. Schultz sensed this as an opportunity to create a place for social interaction, and the high customer numbers enjoyed by the Starbucks stores from the beginning confirmed his intuition.

Keywords

  • Business Model
  • Coffee Bean
  • Coffee Shop
  • Instant Coffee
  • Rainforest Alliance

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-319-38845-8_5
  • Chapter length: 13 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   64.99
Price excludes VAT (USA)
  • ISBN: 978-3-319-38845-8
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   84.99
Price excludes VAT (USA)
Hardcover Book
USD   84.99
Price excludes VAT (USA)
Fig. 5.1
Fig. 5.2
Fig. 5.3

References

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and Permissions

Copyright information

© 2017 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Voigt, KI., Buliga, O., Michl, K. (2017). Globalizing Coffee Culture: The Case of Starbucks. In: Business Model Pioneers. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-38845-8_5

Download citation