Starbucks Essay

Abstract In 2007, Apple and Starbucks became partners in the venture of iTunes store. Over time, another entity entered the equation, AT&T. What does this mean to the customer, the dependability of each to provide superior services to their respective products and services? As it is seen within the IT infrastructure, each entity needs to present certain services to keep up the maintenance of the services on each level, to a point to where one, in an ideal world, for logistical reasons, communicate with each other in case of failure.

Competitors Starbucks faces competition from variety of small-scale specialty coffee chains, such as Caribou Coffee, Peet’s Coffee and Tea, Dunkin Donuts, and thousands of independent specialty coffee shops. Each of them applies different strategies to differentiate itself from Starbucks; some of them deliver highly personalized service.

Introduction Coffee has become a significant part of lifestyle of numerous people. Starbucks has opened its first coffee shop in in Seattle, Washington, USA in 1971 (“About Starbucks,” 2014). The Starbucks is very popular today and has more than 6,000 locations in over 30 countries. In addition to coffee and espresso drinks, people now enjoy Tazo tea and Frappuccino (“About Starbucks,” 2014). The main target of Starbucks is to be the consumer’s favorite coffee shop. The globalization of the businesses increases competition in the food and beverage industries. Starbucks is the most successful and competitive coffee chain on the market. The aggressive strategies of expansion pushed the competitors such as McDonalds or Dunkin Donuts

Ratio Comparisons Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.

Starbucks Competitive Analysis: 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.

Starbucks Case Assignment 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 positions itself as a place college students can hang out, study, write term papers and meet people. A Starbucks appeal to this consumer directly through introducing technology as soon as it comes available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’ Farrell).” However, the majority of the advertising is catered to Adults around the ages of 25 to 40. Adults seem to prefer a pick me up first thing in the morning on their way to work. Most Starbucks today have a drive thru to make it faster to grab and go.

1. What factors accounted for Starbucks’ extraordinary success in the early 1990’s? What was so compelling about the Starbucks’ value proposition? What brand image did Starbucks develop during this period? Is the value proposition still valid in 2002? The extraordinary success Starbucks experienced during the early 1990s

Starbucks Coffee Distribution Preethi Kasireddy [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] Network Preethi Kasireddy Esmeralda Ayala Ari Eryorulmaz Billy Jung [Company Address] Table of Contents Abstract…………………………………………………………………………………………....2 Background and Problem Definition……………………………………………………...2 Current Situation………………………………………………………………………………..2-5 Demand………………………………………………………………………………....2-3 Supply Side Concerns…………………………………………………………………..3-4 Prices……………………………………………………………………………………4-5 Distribution Network………………………………………………………………………...…5-7 Phase 1: From Suppliers

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.

By applying the industry rivalry concept, although Starbucks has other competitors, they are comparatively smaller and they often focus their business in certain areas or regions. Some of Starbucks’ competitors are Coffee People, Gloria Jean’s, Second Cup, which are currently expanding or planning to expand their businesses nationally or internationally.

Competitors Many coffee companies are currently in the market, making competition fierce. Although Starbucks has a strong reputation in North America, direct and indirect competitors still pose a threat. To establish market niche, competitors use location,

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

5. A. What are the advantages of the Starbucks Card to the company? • The most obvious advantage of the card to Starbucks is the guaranteed income. Once people load money on the card it can only be spent at a Starbucks location. It also makes tracking customer purchasing habits and preferences readily available. Then there is the case of the forgotten or lost cards that never get used that equate to pure profit. One last advantage is that with the card they have also created a secondary market for sales by placing the cards in stores like Giant Eagle where people that wouldn’t come into the stores can buy the cards as a gift.