The original Starbucks opened in Seattle, Washington, in 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market to sell high-quality coffee beans and equipment. In 1982 Howard Schultz joined Starbucks as director of retail operations and marketing. After traveling to Italy and discovering the Italian bar that sold espresso by the cup. When he returned, he wanted to apply this principle to their business in 1983. Within 2 months they were selling to over 700 customers a day. In 1987, the owners of the Starbucks Coffee Company decided to sell their business to a group of local investors for $3.7 million. The new investors were told they would open 125 Starbucks Coffee stores over the next 5 years. The company began to expand rapidly. Starbucks is the No. 1 specialty coffee retailer. Starbucks' business model involved selling the company's premium roasted coffee along with espresso, pastries, coffee accessories, and tea. The goal of their business model was to expand internationally and take over other coffee businesses. Starbucks products are: Coffee: More than 30 blends and single-origin coffees Craft beverages: Hot and cold espresso, coffee-free mixed drinks, and Tazo tea Merchandise: Assorted home espresso machines, coffee makers and grinders, premium chocolate, coffee mugs and gift items Fresh Food: sandwiches and salads Entertainment: selection of the best in music, books and movies Starbucks Card: card purchased for swiping and reusable Starbucks is currently doing well on the market. The last trade was $22.81 and the yearly high was $37.14. Revenue through September 2007 was $9.4 million and gross profit is $5.4 million. Starbucks has a market cap of $8 billion, an annual sales growth rate of 20+%, and 11 years of comparable store sales revenue growth of 5+%. Even though the price per share hit the lowest point of the year, the overall average for the year is very good. Starbucks offers very high quality products, although at high prices, they take pride in always satisfying their customers, which sets them apart from their competitors. This keeps their customers coming back and spending their money on their products. Starbucks' differentiation strategy was to offer interesting coffee-related beverages, their unique coffee blending and roasting process,