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Gordon Retail Concepts LLC

149 South Barrington Ave, #783

Los Angeles, CA 90049

Tel: (310) 472-1934

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I would recommend Scott as a leader and a man with great integrity. I had the privilege of watching his creation of The Pier at Caesars in Atlantic City from start to finish.

Adam Weiss
Associate Vice President-Investments, Wachovia Securities

Gordon Retail Concepts outstanding service levels and product offerings are a perfect match for our business. In designing, building and operating the Starbucks, they have always been a tremendous partner. Our customers love the Starbucks outlet just as much as we are enjoying our productive relationship with Gordon Retail Concepts.

Mark Juliano
Former CEO Trump Entertainment Resorts, Inc.

 

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The Starbucks Business Strategy

Author : Scott Gordon | Date : July 17, 2012

Starbucks did not become a global success story by chance. The CEO and visionary behind its extraordinary growth, Howard Schultz, employed a radical and innovative business strategy to propel the company to its current position. His unusual approach was to saturate an area with Starbucks stores, creating more foot traffic for each branch. This risky strategy has paid off, despite going against the traditional view of placing stores according to demographics and at a distance from one another. The underlying philosophy of creating each store as a reflection of its local community, offering a quality product and ‘feel good’ atmosphere worked to draw people to each new store and create the high frequency of customer visits to support this approach of clustering shops into one area.

Providing a One-Of-A-Kind Experience

StarbucksLocating so many stores within a short distance of one another has multiple benefits such as ease of deliveries, keeping queues shorter, building a local reputation by word of mouth and driving out competitors by dominating the coffee shop market in a particular area. The importance of the word of mouth approach to promotion is reflected in a low advertising spend by the company comparative to its competitors. The community based approach to the look, feel and atmosphere of each Starbucks provides a direct link to the trends and desires within the local customer base and adds to the sense of an individually tailored ‘Starbucks experience’ for each customer. This sense of a unique experience, combined with a reputation for consistency in the quality of the product and good customer service, has built the company’s reputation in a far more effective way than through conventional marketing campaigns.

Maintaining such consistency of service and the quality of each cup of coffee can be attributed to the great relationship Starbucks has built with its employees. Good communication and high standards in how employees are treated and the benefits packages they receive have built a loyal, reliable and passionate workforce who are keen to enthuse others with their passion for the brand. The attention to detail and knowledge of its products that Starbucks desire in its workforce have been built from an understanding that its staff are key to the customer’s enjoyable experience. Since many of its baristas are young and work part time around studies or second jobs, the challenge for the company was how to build trust with the staff to win their loyalty and commitment in an area of notoriously high staff turnover. The result is a package that provides a good rate of pay, excellent health care benefits for full and part time staff and their partners and an employee stock purchase plan.

A Unique Approach to Business

Further staff and customer commitment to the brand has been built through its excellent record on responsible and ethical business. Fairtrade coffee and contributions to the communities it works with through social projects where it sources its coffee beans have built the company a reputation for honest, fair and transparent business practices. It has also run projects in the areas where its branches are located, launching literacy campaigns and involving its staff in local volunteering and community projects. Even the top management are brought together for corporate events where they work together on social projects to bring improvements to disadvantaged areas.

These diverse elements have come together to create a unique approach to business which has been celebrated with numerous awards and lead to enormous success for the company. There are now more than 15,000 Starbucks stores in over 50 countries making it the largest coffee house company in the world. The fact that it has managed this huge level of expansion and still maintained its ‘soul’ is a testament to the vision, values and principles of its senior management team and their business strategy.

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Gordon Retail Concepts

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Scott Gordon

Scott Gordon is Owner and President of Gordon Retail Concepts, LLC, an authorized Starbucks Licensee and developer of retail entertainment properties. Until the end of 2007, Mr. Gordon was President and Director of Development of Gordon Group Holdings...

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