How Starbucks become the biggest coffee shop?
The proposed research will look at the rise of Starbucks as the leading coffee shop all over the world. Starbucks has established a new culture in the industry while at the same time becoming the leading provider all over the world. Starbucks Coffee company currently boasts of the largest market shares among its competitor, with almost a $24.72 billion revenue worldwide.
The main research question for this paper will: How has Starbucks become the biggest coffee shop? The research investigates how Starbucks has achieved such and feat in the current competitive market that is changing drastically. Secondly, the research will investigate why Starbucks has been such a success. Thirdly, the research will investigate what the company is doing to maintain its customers and, lastly, how their strategies have been affected by the changing market in the current social media era.
Starbucks is the most successful coffee shop in the world as it has incorporated various theories from the disciplines of economics and psychology that help them in capturing customers’ attention. The success of Starbucks can be associated with the visionary of Howard Schultz.
The exploration of Starbucks is important for the current market and future ventures into various business opportunities. Through the research, it becomes easy to understand the working strategies, the do’s, and don’ts in the business field and the business strategies.
The paper will examine the various social sciences disciplines that Starbucks have implemented in their advantages to ensure that they enjoy the largest market share in the world. The research will look at the psychological and economic social sciences and the theories employed and how they have been employed. Under economic, social science, the research will determine how neo-Keynesians and supply-side economics theories. According to (Sahu 2020), the neo-Keynesians theory recommends managing the aggregated demand using monetary and fiscal policies. During the research, the theory will be studied to determine how the company was affected by the polices and demands of its products. The Supply-side theory will look at how the organization can enhance the growth economically through the enhancing of the supply factors of productions such as labor and capital.
The psychological theories will look at the behaviors of the customer and how various strategies that were used by the organization affected the purchasing of the customers. The theories will be cognitive and symbolic interactionism. The cognitive theory study will examine the brain activities that determine the memory, perception, and decision-making process. The study will look at what the organization is doing to have an impact on the perspective of customers and how that has helped in attaining its current position as by (Social Psychology Theories – iResearchNet, 2020). Symbolic interactionism will study how the organization has engaged with the customers to create meaning and even develop a culture.
For a successful research paper, I have gone through articles, journals, and even websites. The aim has been to gain the perspectives at which each of them has on Starbucks. The sources I have found are discussed in the Annotated bibliography and their importance discussed. During the research period, I expect to face some challenges. The main challenge will be time management and balancing my research with my social life. Another challenge foreseen is the monetary resources that are needed for the research.
PAPER OUTLINE MODEL.
“How Starbucks has become the biggest coffee shop.”
INTRODUCTION: (2 pages in the Final Paper): – The introduction to Starbucks. A reason why the topic and why it suits your field of specialization. The introduction will include the definition of the terms that are expected to be found in the paper.
BACKGROUND (2 pages in the Final Paper): – The background will involve a brief history of Starbucks. It will include data, statistics that indicate why Starbucks is the best coffee shop.
- History of Starbucks.
- Countries that the company operates and statistics of its operation.
- Starbucks Competitors and their market shares in comparison with Starbucks.
SECTION ONE: (3 pages in the Final Paper): Strategies that make Starbucks the best.
- Theories: Introduction about Economic, social science in use by Starbucks.
- Where is it used?
- How is it used?
- What kind of effect has it had?
- Theories: Introduction to Psychological, social science in use by Starbucks.
- Where is it used?
- How is it used?
- What kind of effect has it had?
SECTION TWO: (3 pages in the Final Paper): The Growth of Starbucks and the Incorporation of the Theories.
- Economic Social Science: neo-Keynesians and supply-side economics theories.
- The application of each theory
- The impacts of the theories.
- Conclusion on the theory application.
- Psychological Social Science: cognitive and symbolic interactionism
- The application of each theory
- The impacts of the theories.
- Conclusion on the theory application.
CONCLUSION (1 page in the final paper): The conclusion will involve the last thought on the paper and why it was important to handle the research on your topic. Give a summary of the research that you handled.
Annotated Bibliography.
Wu, Hung-Che. “What drives experiential loyalty? A case study of Starbucks coffee chain in Taiwan.” British Food Journal (2017).
The study is a case study of a Taiwan branch of Starbucks Coffee shop. The paper examines the relationships between the organization and its customers. The paper takes an experimental approach where dimensions of quality, interrelationships, satisfaction, and perceptions are examined regarding how they affect the loyalty of the customer. The paper is important for my research as it helps understand how Starbucks relates with the customer, the quality of tier product, and the psychological factors and activities that they use to keep the customers satisfied. The paper gives an insight also on the supply chain perspective and relationship with the suppliers, which is an important perspective when considering economics as a social science.
Ramdhani, Muh, and Alief Syahru. “DOMINANT FACTORS OF THE EXPERIENCE ECONOMY TO STIMULATE CUSTOMER PURCHASING INTENTION: STUDY IN STARBUCKS NORTH CIKARANG.” Ph.D. diss., President University, 2017.
The paper aims to unearth the dominant factors that the economic, social science that can be used to stimulate customer intention. The study is formed in a case study form, where it analyses the functioning of the Starbucks Coffee shop in North Cirakang, Indonesia. The paper is relevant to the study as it tries to discuss Starbuck’s policy as a case study in one of its branches will indicate the practices carried out throughout all the other branches. The paper gives an insight into the internal performance of Starbucks and provides a clearer picture of what it takes to be Starbucks.
Burge, S., 2013. The Motivational Reasons behind Consumer Choice in Branded Coffee Shops. Reinvention: an International Journal of Undergraduate Research, [online] (BCUR/ICUR 2013 Special Issue). Available at: <http://www.warwick.ac.uk/reinventionjournal/archive/bcur2013specialissue/burge/.> [Accessed 18 September 2020].
The paper aimed to increase the level of understanding and perception of the factors that motivate customers to choose branded coffee shops. It involved collecting data with 300 questionaries, which I find very informative in issues related to the creation of a good relationship and a lasting perception of the customers. The research will help in understanding why good perception is important for a business and why Starbucks has concentrated on the creation of a lasting perception of their customers. Through the paper, I will understand the motivation behind being loyal to a certain brand by customers and why they will choose Starbucks over the other available coffee shops.
Dada, G., 2014. Buyer Psychology and Customer Value: Why Do People Buy Starbucks Coffee? [online] Business 2 Community. Available at: <https://www.business2community.com/customer-experience/buyer-psychology-customer-value-people-buy-starbucks-coffee-0995182> [Accessed 19 September 2020].
The writer from this website tries to explain what Starbucks is doing different from other coffee shops and why they have a larger market than the rest. The views of the writer can be seen explaining Psychology as social science and its effect on customers, how the Starbucks has used it and how through it, Starbucks has struck a gem of winning more customers. The website provides an insight that is important for my research as it will help figure out how Starbucks has used various strategies to make its strides.
Walton, A., 2020. Starbucks’ Power Over Us Is Bigger Than Coffee: It’s Personal. [online] Forbes. Available at: <https://www.forbes.com/sites/alicegwalton/2012/05/29/starbucks-hold-on-us-is-bigger-than-coffee-its-psychology/#588f24e04aed> [Accessed 19 September 2020].
The writer in this paper explains the psychological effects that Starbucks services and business strategies have affected people. As the title indicates, the Starbucks strategies have taken the mind of people, and thus it increased the market and a reason why it’s the biggest coffee shop. The research paper is important for my research as it will help in explaining and understanding the psychological, social science theories that have been used by Starbucks. Starbucks has taken the psychological part of its customers by handling them, their layout, and their worker’s relationship with customers, which have provided them with competitive advantages.
Neilson, G., and Gulati, R., 2012. The Barista Principle — Starbucks And The Rise Of Relational Capital. [online] strategy+business. Available at: <https://www.strategy-business.com/article/20534?gko=eb786> [Accessed 19 September 2020].
According to the authors of this article, they believe that Starbucks is one of the pioneers of relationships as a capital for a business. In the paper, the authors discuss hoe Starbucks has created a relationship with customers and have been able to win the customers over a long period. Since the takeover by Schultz, Starbucks has experienced success as they concentrated on the creation of good relationships. To answer the economics theories as social science, the paper will be important within insight in making the relationship capital and how Starbucks has used it to their advantage.
References.
Psychology. 2020. Social Psychology Theories – Iresearchnet. [online] Available at: <http://psychology.iresearchnet.com/social-psychology/social-psychology-theories/> [Accessed 18 September 2020].
Sahu, A., 2020. Economic Theories – Benefits. [online] Referenceforbusiness.com. Available at: <https://www.referenceforbusiness.com/encyclopedia/Eco-Ent/Economic-Theories.html> [Accessed 18 September 2020].
