Good business Ideas: Part 2

One of the major reasons for Starbucks remarkable success was that it capitalised on the concept that was new and no one ever thought of that before, “The Coffee house as a get-together place”.

It is not a place to just stop by, grab a cup of coffee and carry on with your routine work. Instead it’s a place where you socialise and have intellectual discussions. It’s the idea that helped people to realise that official meetings if held at a place
outside the working premises in a warm reasonable environment can obtain better results.

Starbucks has done well to change a simple coffee place to a professional meeting area where you can gather and share your point of views, use internet, listen to your favourite music, have your favourite coffee and do your routine work away from your work
place.

Starbucks was first opened in 1971 in Seattle. The company started small but it had big ambitions right from the beginning. Almost after a decade, in 1982, it was made a public company.

Even after a slow start, the firm currently holds a big percentage of the coffee market i.e. 40%. The growth in the coffee industry is extensive that can also help the company to capitalise on its opportunities for further expansion in future.

In fact, one can say that Starbucks is just at the beginning to colonize the globe.

Starbucks has always shown great strength towards spotting the opportunities and getting maximum out even if they have to break some of the old accepted trends.

The ability to look different and think outside the box is what has changed a small coffee shop into the largest coffee supplier in the world and that is something small businesses must learn from Starbucks.

Starbucks has always shown its different approach towards the operations contrary to already established businesses.

Company did not choose a location that was solely based on demographics instead it gathered the stores in the chosen areas which made Starbucks ever-present in several of the city streets.

Starbucks was warned by the old traditional mindset, that locating stores close to each other will cut sales at existing outlets.

Starbucks however decided to go against what was a normal assumption and used that strategy to increase the market share and the revenue. The risk was worth taking and the idea of clustering a specific area with stores helped the firm in quick market dominance.

One of the benefits of the strategy was the ease of delivering goods and managing stores as they were close to one another

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Posted by Ahmed Babar on Jan 31 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry