Executive Summary Chatime seems to be blooming as the market leader in the bubble tea market of Malaysia. Instant-Chatime was recommended to maintain its market share in this competitive industry as suggested in the previous proposal. With this, Chatime seeks to investigate and study about its main competitor – Starbucks. A brief profile of Starbucks is shown and compared with our company. The illustrations and tables are tailored to what Chatime should be aware of the surroundings of every potential rival in Malaysia. This proposal is about our analysis on Starbucks discussing about the three strategies the market leader used in the beverage industry. We observed Starbucks’ accomplishments and problems in accordance with analyzing …show more content…
Lastly, a rough idea on the last factor - competitive rivalry which discusses about six details Chatime has to consider is shown in Table 1 (tutor2u.com, 2012) Competitive Rivalry (Degree Of Rivalry) | Examples And Findings | Structure of Competition | * Chatime is the largest market share in the bubble milk tea industry. * Although bubble milk tea falls under the tea industry, Chatime has to consider Starbucks or any other beverage to be a threat to the business. | Structure of Industry | * Chatime has to incur a fixed cost of opening outlets all across Malaysia. Each outlet costs RM300,000 to RM400,000 (depending on sizes of outlets). * A galleria cost over RM500,000 each. | Degree of Differentiation | * Chatime is a Taiwanese brand that sells dessert-like beverages. However, it specialises in the bubble tea industry. * In contrast to a regular milk tea found in the streets of Malaysia – “Teh Tarik” in Mamak stalls. | Switching Costs (Suppliers) | * Chatime is tied up with La Kaffa. | Strategic Objectives | * Chatime caters a wide range of beverages and convenience to the public. | Exit Barriers | * The sunk cost that Chatime will have to bare if it is liquidated. | Table 1: Competitive Rivalry that Chatime faces After knowing the five forces for Chatime here are three parts of analysing our competitor - Starbucks. Firstly, knowing about the market structure of Chatime is crucial. Currently,
As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.
1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010
The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.
Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.
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
It’s a known fact that Starbucks is one of the leading brand in the market.When we analyse the market we find that Mcdonald 's and Dunkin are the competitors in the same product segment. So comparing Starbucks with these competitors will throw light on its grey areas, process and competitive edge in the market.
The major strength of Chatime is it has a strong brand name that most of Malaysian ice blended fans have perfectly knowledge about Chatime products. Chatime franchises will based on the operational and economic perspective to select the most appropriate site for its businesses by using several ways and steps. For instance, an area which is car parking available or close to public transportation and has a lot of passing foot traffic is an ideal location.
Moreover, most of the people know the brand Starbucks as the leader of the coffee industry. It is enormously successful and it comes out with no surprise that this will be used as benchmarking against the study of Dunkin’ Donuts.
In this paper, I will talk about Starbucks Company. I will define the influence of the vision, and mission of the company and primary stakeholders along with their overall success. An examination will be conducted to categorize five forces of struggle and their effect on the corporation. I will carry out a SWOT analysis to determine the opportunities, threats, strengths, and weaknesses. Founded on the SWOT analysis, a technique of opportunities and advantages will be exploited while threats and weaknesses will be diminished. Several types and levels of techniques will be talked over to operate the profitability and competitiveness. I will outline a plan of communication to make approaches known to all investors. Two corporate authorities will be designated to assess the efficiency of the regulating managers. I will also assess the effectiveness of management within the Company and come up with sanctions for upgrading.
Although the initial introduction of the bubble tea in Singapore was well received, its popularity only started to take off in 2001 (Jan, 2014). This long introduction phase was because this was a completely new product launched by a pioneering company “Bubble Tea Garden” which had no existing customer base. Hence, the introduction stage was much longer compared to Starbucks’ Frappucinno. As it entered the growth stage, popularity for bubble tea became extremely well received especially among the youth, who were among the early adopters of the drink. Favorable word of mouth spread quickly and created long queues at bubble tea shops, and transformed many sit-in bubble tea cafes to takeaway-only shops. This was a key point of difference as it made it easy for competitors to enter the market due to the low startup costs associated with opening a small takeaway-only bubble tea shop compared to Starbucks’ café style
Starbucks started in 1971 and by creating a cozy third place to customers beyond home and work and offering a slightly higher price yet fine quality coffee, within 25 years, it had opened just over 1000 stores. In order to maintain its leadership position, Starbucks had continued pursuing growth opportunities by selling Starbucks products through mass distribution channels and expanding its retail footprint. Along with the rapid expansion and success, Starbucks has encountered financial downturn in 2008, and the rise of competitors from both high price independent coffee shops, smaller coffee chains that resembled pre-expansion Starbucks model, to low price fast food restaurants chain McDonald’s and Dunkin’s Donuts has deteriorate the
Strategic planning is the process of gathering information from stakeholders, market players, professional entity, and government agency. The purpose of gathering information is formulating a realistic and a workable framework that any organization can implement and work with. Evaluation of information is a key aspect in determine the kind of plans that the organization wish to a chive over certain a period. Strategic planning ensures the implementation is, crafted well, and parties involved be acquitted with it. Developing a good Strategic plan helps a company to implement its missions and visions effectively, and helps the company to evaluate
With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years.
India, like many other Asian countries, has a tea drinking culture, but the coffee market is catching up and growing fast. This case talked about the stories of Café Coffee Day (CCD), the Indian coffee industry market leader, along with its competitor Starbucks from USA. CCD was founded in 1996 and by April 2013 it had around 3,000 stores within the Indian market. CCD had not faced any severe threat up till 2012 when Starbucks made its entry into the Indian market through a joint venture with Tata. As the world’s largest coffee chain company, Starbucks wanted to get a slice of the cake. In 2013, it opened 11 stores in Delhi and Mumbai.