Analysis of Starbucks

Starbucks has reinvented itself numerous times over the past 40 years and continues to experience substantial growth and contractions. They started as a small company, with its first location in Seattle’s historic Pike Place Market in 1971, and today, “there are more than 21,000 stores in 66 countries.” They have grown from not only selling coffee, but also offer a wide selection of teas, specialty drinks, pastries and an assortment of sandwiches for breakfast, lunch or dinner. They have also diversified their product offerings to include a wider variety of coffee beans, drink ware, and equipment to make coffee or tea at home.

a.     Starbucks began in 1971 when three scholars-English teacher Jerry Baldwin-history teacher Zev Siegel, and writer Gordon Bowker- opened a store called Starbucks Coffee, Tea and Spice in the touristy Pikes Place Market in Seattle.

Starbucks has a number of different strengths on which it can draw in order to see its vision come to fruition. The company has a great brand, and this brand allows it to enter new markets and to add new products to its lineup. For example, the power of the Starbucks brand allowed the company to enter into a worldwide deal with Pepsi for bottled drinks in the supermarket. Also, when Starbucks enters new markets, its brand value usually precedes it. It can attract expats immediately and will pique the curiosity of the locals. Considering the value of the brand in high growth Asian markets like China, Starbucks has tremendous potential to bring its vision to reality.

However, because Starbucks expands rapidly in the global market in order to pursue the financial numbers, it causes a reduction of the brand value, which is one of the major problems that Starbucks Corporation encounters in the process of expanding Chinese market. Furthermore, in China, there is a large gap between economic strength of the large cities and small cities. Because the price of Starbucks coffee is too high, therefore it is hard for Starbucks’s market development in the medium and small cities in China. The last major

External Analysis of Starbucks 4 1.0.0. Executive Summary The Starbucks Corporation is the largest coffee chain in the United States and internationally. To better understand the coffee industry, the purpose of the paper will provide a detailed external analysis on Starbucks’ global operations. Included in the study will be an explanation on Starbucks’ initial founding history followed by its background as well as the purpose of the study. In addition, the paper gives a detailed assessment of the external analysis which consists of six portions. The first portion is the general environment analysis of the coffee industry’s operations and the way it factors in the demographic segment, the economic segment, the political/legal segment, the socio-cultural segment, the technological segment, and the global segment. The second

It’s hard to drive the street these days and not see a Starbuck’s coffee house sitting on a corner with cars lined up in the drive-thru or consumers gathering in their café to socialize. This has been the scene since the first Starbucks was opened in 1971. Since then, Howard Schultz, chairman and CEO, has embarked on a vision to bring Italian coffeehouse traditions back to the United States. Starbucks mission statement is simple, “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks, 2017, para. 7). Starbucks has built a global empire with a reported 22,519 stores spanning over 66 countries. The company’s diversity and purchase power of

However, there was a significant differentiation between Starbucks and the independent specialty coffeehouses. The brand image of Starbucks also had some rough edges. More customers were beginning to agree with the fact the Starbucks cared primarily about making money and building more stores. Also, despite the high customer snapshot scores customer satisfaction scores were declining. It was believed that there was a service gap between Starbucks scores on key attributes and customer satisfaction. In polls by customers “improvements to service,” particularly speed of service, was most mentioned for improvement.

Millions of individuals all over the globe walk into Starbucks daily for his or her cup of coffee, however it's more than the expensive coffee that brings individuals in day after day to the Starbucks stores across the globe. Starbucks offers an upbeat atmosphere and friendly and helpful employees to help customers in any question or problem they may have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. Although varied business models exist, the principles and structure of Starbucks could be a sensible model to follow, because of its national and global success. Throughout its history, the company has reached outstanding results, turning into one of the leaders within the national market. Although numerous business models exist, the principles and structure of Starbucks may be a smart model to follow, thanks to its national and international success. Throughout its history, the corporate has reached outstanding results, changing into one in all the leaders within the national market. At the same time, the time is changing and the method of globalization contributes to the growing competition, while the company’s administration perfectly realizes that Starbucks to still progress. Otherwise the degradations is inevitable. In such a scenario, it's extraordinarily vital to decide on the right strategy of the additional development of the company. It should be mentioned, within the current state of affairs,

Starbucks, what started in Seattle in 1971s by three friends: erry Baldwin, Zev Siegl, and Gordon Bowker. They opened a small shop and began selling fresh and cold coffee. Starbucks has always been a place where you can find world’s best coffee. In 1970s, Starbucks open its first coffee restaurant and

Starbucks Corporation forms licensing agreements with the majority of their foreign retail stores to collaborate and develop international partnerships with brands that have a solid position in the overseas market. Starbucks Corporation owns 698 company-operated stores and 1743 licensed stores in 39 countries in Europe, the Middle East, and Africa (EMEA) regions. In the China/Asia Pacific (CAP) regions, Starbucks spans across 15 countries consisting of 2542 company-operated stores and 3201 licensed stores. China alone has 2000 stores and Starbucks projects a growth of 500 additional retail stores per year over the next five years. The acquisition of Teavana Holding, Inc. in 2012 has become a successful and prosperous venture capital investment, therefore Starbucks strategy is to extend the specialty Teavana tea brand into Europe and China/Asia Pacific markets with the hopes of driving revenue growth. Starbucks’ plans to enter their most intimidating market, Italy in 2017. Will the Italian coffee market be a challenge for Starbucks Corporation or prove a positive economic venture for the company?

This will also solve two main criticism made about Starbucks : a too fast growth and a cannibalizing turnover in closely located stores. But still, Starbucks needs to work on its image which decreased over time, and on product quality, because without a good image, expanding is less effective and efficient. And finally, since the company is no more limited to a coffee-shop company, it can use its new products as a new internationalization product, with new strategies as context changes. Quantitative Study This study is based on a ranking of countries based on several different data. Each country if first ranked based on : (1) Its Human Development Index, (2) Its GNI per Capita (PPP), (3) Its Urban population with number of tourists added, (4) Its coffee consumption (per capita * total population), and (5) Its coffee trade balance (Imports-Exports). These 5 data allow to create a single index that allows to rank countries based on their development, money available, potential consumers and market. The trade balance is used to show the ease of importing coffee in a country and therefore do not care about main exporters. Once ranked, 3 data have been added : Presence of Starbucks, OECD Country risk and IDA index. End ranking is provided in Annex 4. Among the top 40 countries

These opportunities are related to serving customer needs because Starbucks will be able to satisfy the desire for their coffee along with the experience in other countries. Emerging international markets allow Starbucks to expand while our country is experiencing and economic recession. Starbucks has already begun flourishing in these emerging international markets, beginning in China. Specifically, they have opened 420 stores and consider it a great opportunity because of the large number of people in this area. China is great places for this type of product since the Chinese already have a taste for coffee and tea’s.

The purpose of this report is to be able to identify and discuss two of the most recent innovative activities of the world’s biggest and well-recognised retail coffee company, Starbucks Corporation. Starbucks has introduced numerous innovations over its long history. From its signature terms (like barista, venti, chai, Frappuccino®) (Michelli 2007), the drive-thru café concept, the Starbucks Card, the digital app ‘shake to pay’ to the corporate culture that overall makes the Starbucks Experience are some of the reasons why Starbucks has maintained its dominance in the coffee industry. This report will look in to its activities involving innovation and map each of them in the 4P framework of innovation space. Furthermore, the innovation identified will be analysed to understand its strengths and weaknesses in order to come up with new strategies for innovation.

The purpose of this essay is to prepare a strategy formulation analysis required by the company. The company selected is Starbucks Corporation, commonly known as Starbucks, when they first started in Seattle, Washington in 1971, founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker; and became an American multinational company which started from scratch (Garza, n.d.). It was then incorporated on November 4, 1985, and is a roaster, marketer, and retailer of coffee. Starbucks offers a range of exceptional products include coffee, handcrafted beverages, merchandise, and fresh food. The company 's mission is "to inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time" (Starbucks, 2012).

Beginning in 1971 with only one shop in Settle’s historic Pike Place Market for coffee and tea, Starbucks has managed to become one of the most successful companies in the world. It has become number one in the coffee industry. As of June 2012 Starbucks owns 19,763 coffee shops in 59 countries which includes 12,848 in the United States, 1,264 in Canada, 973 in Japan, 778 in Great Britain, 621 in China, 441 in South Korea, 350 in Mexico and 269 in the Philippines. Offering to its consumers’ different coffees with unique flavors, tea and beverages, including food