Firstly, the segmentation, target segment and positioning of Starbucks was never revisited since its origin. The changing attitudes towards the coffee drinking habits and the ever changing face of the customers necessitated revisiting the target customer segment to focus effectively on this segment.
Secondly, Starbucks had started placing its products in departmental stores. This would mean that a customer now had the option of getting a Starbucks coffee from a place that would provide them convenience at the cost of the ambience the coffee shop. The ambience received by a customer at Starbucks was a key component of their value proposition to the customer, and by placing its packaged products on the shelves of a departmental store, was like going against one of the key philosophies of Starbucks.
Thirdly, their global expansion plans were not well supported by strategic initiatives like stocking the counters with snacks and savouries catering to the local tastes of the region. Most of the snacks and sandwiches suited American taste buds. The international expansion plans were not supported by the “Think Global but Act Local” viewpoint.
Lastly, Starbucks had become ubiquitous, which meant that a customer could find a Starbucks everywhere. This could have been a major problem since it would have lead to a loss of exclusivity for customers.
Q2. Giving the customers a compelling value proposition was the major Unique Selling Proposition of Starbucks. Consequently, evaluating the customer...