Starbucks Competitive Market Analysis Paper

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks recently unveiled a new single-serving home brewer. Starbucks has always made their coffee available at home. They were presently offering their coffee beans for home brewing; sells premixed bottled frappuccinos; and recently started selling Via which is instant Starbucks coffee. So, being able to brew Starbucks’ coffee at home isn’t a new concept. However, now Starbucks has an added twist with its new top notch coffee system, the Verismo. The Verismo is in alignment with Starbucks’ commitment to bring exceptional coffee and espresso beverages to their customers. In fact, in being able to offer customers these products at home, Starbucks has once again raised the bar (Starbucks Newsroom, 2012).

Starbucks’s has been able to surpass its rivals and continue being one of the premier roaster and retailers of specialty coffee in the world since its inception in 1985. Such an accomplishment has been sustainable due to a concrete company strategy. When Starbucks’s first debuted back in 1985 it was the first coffee shop to bring specialty coffees to the mass market in the United States. Along with only purchasing and roasting top quality coffee beans they designed their strategy in a way which gave the customer the ability to customize their drinks to meet each person’s individual preference. They also included free Wi-Fi in all of their stores, which in turn increased an already competitive advantage even more by not only offering customers

Starbucks coffee company is one of the most powerful American Corporations, it founded in 1971, inside a historic public market called Pike Place Market in Seattle Washington by three partners (lee, n.d). Starbucks company commenced with a small shop specializing in brewing products and providing high-quality coffee addition to teas, today it become a leading retailer of specialty beans, large variety coffee beverages, different pastries, and snacks, with approximately 24,000 stores in over 70 countries such as Belgium, Brazil, china, and Cyprus, and it is serving millions of costumers daily with unique product and premium prices (“Starbucks company profile,” n.d). The main international competitors of Starbucks are Costa the British coffee

Starbucks is the one of the fastest growing companies in the US and in the world that started its business in 1971 as a small shop located in Seattle, Washington, by Jerry Baldwin, Gordon Bowker and Zev Siegl. The shop was selling mostly roasted Arabica coffee beans until they sold the company to employee Haward Schlutz in 1987. Since that day, Starbucks is able to stablish its own name and reputation in the market. Starbucks has now become a good place for the customers to relax and enjoy quality time beside home and work.

Starbucks was initially opened at 2000 Western Avenue, Seattle, Washington on 30th March 1971 (Wach, 2011). Starbucks continued to stay located here until 1976, it was then moved to 1912 Pike Place Market (Brewer, Brissenden and Carmin, 2003). Starbucks was a product of the merger of Jerry Baldwin, Zev Siegel and Gordon Bowker (Pendergrast, 1999). Starbucks originally started off to sell whole roasted coffee beans to the public, initially no brewed coffee was sold it was used as samples for the buyers (Dono Reeves, 1992). Howard Schultz the Chairman and CEO of Starbucks experienced Starbucks in 1981 with his first cup of Sumatra and joined the company a year later. Howard then traveled to Italy in 1983 and was completely mesmerized by the Italian coffee bars, he then brought the coffeehouse vision back with him (Starbucks Coffee Company, 2014). In 1998 Starbucks entered the European market (Starbucks Coffee Company, 2014), Starbucks paid a whopping $83 million to start the chain in Britain with 56 coffee shops (McDonald's Corp., 1999). Starbucks

Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. Their mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time”. Today, with more than 18,000 stores in 62 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world. And with every cup, we strive to bring both our heritage and an exceptional experience to life.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

Starbucks Corporation opens its first shop in 1971 with just narrow storefront. It offers some of the world’s finest fresh-roasted whole bean coffees. The name, Starbucks, evoked the romance of high seas and the seafaring tradition of the early coffee traders. Starbucks does not only offer coffees, but also a selection of premium teas, fine pastries and other delectable treats to please the taste buds of customers. It provide a full and rewarding coffeehouse experiences. Starbucks make sure everything they do is through the lens of humanity, from their commitment to highest quality coffee in the world, to the way they engage with their customers and communities to do business responsibly (Starbucks, 2015).

“Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (“Company Information, 2015). Starbucks’ mission statement exemplifies their ambition to ensure that each customer has an individualized experience when they enter into their coffeehouse. Starbucks was founded in 1971 and opened their first location in Seattle’s Pike Place Market (“Company Information,” 2015). Although the company’s website did not relinquish information on the founders, further research provided the names of three young businessmen. Jerry Baldwin, Zev Siegl and Gordon Bowker started operations in Seattle by selling coffee beans and coffee making machines (“History of

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

The Starbucks Corporation, an American company founded in 1971 in Seattle, WA, has had a substantial impact on the way Americans socialize, relax and even meet to conduct business. Starbucks is a premier roaster, marketer and retailer of specialty coffee around the world. With an annual growth consistently topping 20%, it is obvious that the company is doing something right. Today, the Starbucks Corporation employs over 182,000 individuals in 19,767 company operated stores that are spread throughout 62 countries, making it the largest coffee house chain in the world. Their product mix includes handcrafted and roasted premium priced coffees, tea and other beverages, as well as a variety of fresh food items. Starbucks also licenses their trademark through other channels such as licensed stores, grocery and national foodservice accounts. In addition to the Starbucks brand, their portfolio includes goods offered under these brands; Tazo, Seattle’s Best Coffee, Starbucks VIA, Teavana, Starbucks Refreshers, Evolution Fresh. Starbucks reached a total revenue of $14.89 billion as of September 29th, 2013. Their mission is to inspire the human spirit one person, one cup, and one neighborhood at a time.

Starbucks is an American company who try to expend its business to other country around the world. However, each country owned and has an identity, a history, and culture. This requires to Starbucks to analyze the current market and adapt his offers according to the needs and mores (usages).

Starbucks Coffee Company, which is commonly known as Starbucks or Starbucks Corporation, is the dominant world-leading roaster as well as retailer of specialty coffee in the 21st century. Until now, it has over 20,000 stores in the world, which shows a huge number difference between Starbucks and the following competitor - Dunkin’ Donuts, which has just around 10,000 stores (Statista, 2014). The annual revenue of Starbucks skyrocketed in comparison with the last past decades in 2014, reaching around 16.45 billion profits U.S. dollars (Statista, 2014). Starbucks roasts its specialty Arabica coffee beans and retails a selection of beverage products, consisting of fresh brewed coffees, hot and cold espresso beverages, non-coffee blended beverages. In addition, it sells food items such as sandwich or muffin, along with beverage-related equipment. Starbucks main strategies for publicizing business depend on a combination with company-owned and licensed stores as well as joint venture to expand across the globe with its local partners. For the most part, Starbucks applies the same basic collection of products and customizes few additional products depending on customer’s preferences from different countries.

Recession and weakened economy had impact on all industries because of its adverse impact on the individual income and growing deficit. About 13.7% of retail foods are being captured by speciality eateries segment (Gupta, 2013). This industry continues to outpace the other industrial performance with 19.1% growth from 2009 to 2011 (Gupta, 2013). Besides various obstacles faced by the industry, they posed for a strong growth in the market because of their flexibility to the changes. This industry is acting according to the consumer taste and preference which enables the player’s to get positive growth rate.