INTRODUCTION Starbucks portray a number of issues that may affect the company’s’ growth in the near

Starbucks Corporation is a coffeehouse chain that began in Seattle in 1971. Since that time, Starbucks operations have grown; there are now over 22,000 retail stores throughout 67 countries. Starbucks strives to offer customers a comfortable, “home-like” environment while remaining conscious of ethical behaviors and social responsibility. It can be argued that Starbucks dominates the coffeehouse market, and much of this may be due to a grand strategy with a focus on growth. Using a growth strategy, Starbucks attempts to increase its market share and revenues by increasing the number of its stores and the number of locations it serves. So far, Starbucks has enjoyed much success with this strategy.

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.

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

The story of Starbucks in Australia is a helpful lesson for everyone in business. It is considered a tale of a business that was seeking world domination in its area that somehow walked into a new market deprived of first testing the waters. What went wrong for the business down under has been analyzed in a lot of research by a lot of experts in that area. When Starbucks had come onto the scene of the Australian market in 2000, it was certainly one of the biggest coffee chains that were worldwide, opening up one new store each day anywhere in the world, notes Patterson. Its achievement in the US, which had not up to that time liked a strong society that was coffee-drinking, had provided the brand great sureness to come in other markets counting China(1996) and Japan(1998). The corporation now has some where around 15,000 stores in 44 lands. Nonetheless in mid-2008, Starbucks' organization proclaimed that it would have to start closing 61 of its 84 Australian stores (Clark, G. ,2000). The closings all had taken place quickly in one month. Fatalities were huge, counting 685 jobs and a$143 million. Just 23 Australian stores were left open to operate in major locations. What went so wrong?

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

Even so, just two weeks earlier Howard Schultz announced that the company will be expanding internationally. The plan is to open more than 1500 stores in Germany, France, and Britain over a 3-year span (Forbes, 2008). It is estimated that this expansion will boost revenue by more than 20 percent (MSN Money, 2008). In spite of Starbucks’ struggle among its love-hate relationship between customers and protesters, one thing that Starbucks

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.

to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To

As Starbucks grows, our business model may become obsolete due market saturation. For example, a Starbucks on every corner may not be sustainable if the corners are diagonal from each other. Starbucks’ current market cap is 20 billion (compared to McDonalds 36 billion) and may reach a critical growth point where high levels of expansion are unattainable as a percentage of Starbucks’ size. At this point, our strategy may need to be revised to match the changing environment. For example, diminishing growth may be offset by international growth opportunities including China and India.

Specialty-coffeehouse culture is well interwoven into the fabric of American society at this point and we can thank Starbucks for ushering in the phenomenon. Back when three coffee connoisseurs assembled to open the first Starbucks store in Seattle, I’m sure they could not imagine its behemoth future. With the vision of Howard Schultz, Starbucks has grown to become one of the most internationally recognized brands. With distribution that includes company-operated retail stores, global Specialty Operations, and licensing today Starbucks generates over 2 billion in revenues (starbucks.com). This growth, however,

Following its success in the United States, Starbucks ventured overseas and quickly became a globalization icon. With its rapid globalization strategy, Starbucks expanded from about 5000 stores to an estimated 15,000 stores in 2000 (Groth, 2011). By mid-2000s, Starbucks’ supply chain faced many issues, resulting with challenges of having to fulfill expansion strategies yet minimizing escalating operation expenses. By 2008, Starbucks’ stocks fell by 42% (Schultz, 2011). The rapid expansion took a toll on the sales growth and stretched the limits of the existing supply chain, which then rippled down to erode the customer-valued ‘Starbucks experience’ (Gibbons, 2011).

When the announcement was made in mid 2008 that Starbucks would be closing nearly three-quarters of its 84 Australian stores there was mixed reaction. Some people were shocked, others were triumphant. Journalists used every pun in the book to create a sensational headline, and it seemed everyone had a theory as to what went wrong. This case outlines the astounding growth and expansion of the Starbucks brand worldwide, including to Australia. It then shifts focus to describe the extent of the store closures in Australia, before offering several reasons for the failure and lessons that others might learn from the case.

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

Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks

Starbucks is one of the world’s largest success stories when it comes to the business world. What began as a little shop in Seattle has turned into more than a house hold name; it’s a name that everyone everywhere can associate with. Even if you have never stepped foot in a store, or don’t drink coffee at all you know the name. Starbucks has spread into global markets in the last few years, and with its U.S. ventures has been received very well, even in cities that weren’t forecasted to have open arms for the corporate giant. There really is nowhere for the company to go but up, especially at this time, Starbucks survived the recession, and along with a few other businesses all across the