Analysis of Starbucks

5240 Words Jul 15th, 2008 21 Pages
An Analysis of Starbucks

Company History

Starbucks was opened its first coffee company in Seattle’s Pike place
Market on 1971. The name was taken from the first mate in Herman
Melville’s Moby Dick (Company Profile, 2005).

Products

Beverages: Brewed coffees, Italian-style espresso, cold blended beverages, roasted whole bean coffees, tea products, fruit juice, sodas, and coffee liqueur.

Food: Sandwich, Salads, pastries and ice creams.

Non food items: Mugs, Travel tumblers, coffeemakers, coffee grinders, storage containers, compact discs, games, seasonal novelty items, Starbucks card, media bar.

International Business Development

In order to achieve Starbucks mission to be a global company, the
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It means that domestic market in China can supply abundant coffee beans, besides importing from the United States. Besides, rapid growth of economy in China is one of aspects to which Starbucks paid much attention. Although China is still among the developing countries with a relatively low per capita income, it has had tremendous economic growth since the late 1970s. According to the report of Asian
Development Bank, China 's growth rate for the coming 2-3 years is predicted to be 8.5 % and above (“Economy of China”, 2005). Therefore,
"We believe that China has enormous growth potential," said Martin
Coles, president of international operations at Starbucks (“China is
Starbuck 's Cup of Tea”, 2005).

Detail Analysis

SWOT Analysis

Strengths

* The reputation of brand name and image

Strong brand name and image of Starbucks allow brand recognition and consumer retention. Therefore, the expanding of stores to other countries is easier and proficient.

* High revenues and profits

The financial performance of company has positive aspects. The revenues of Starbucks in 2004 were $5.3 billion, growing at about 30 percent. Moreover, in 2004 there was a sharp growth in profit, at 44 percent (Investor relationships, 2005). The exponential growth in revenue and profit creates the strong financial statement and reliability to

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