Internal and External Factors Affecting Starbucks

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.

For Starbucks corporations, this presents an opportunity to grow in the domestic market when currently there are 50% of Americans that drink coffee as well. This percentage also correlates to a 225.2 billion dollar impact in the U.S. Along with growth in coffee shops; the coffee industry had managed to be 1.6% of total gross domestic product in the United States. This opportunity received a weight of .10 in this External Factor Evaluation. This second rating was given a 2 for average.

This assignment is based on the Starbucks case study; Trouble Brews at Starbucks written by Lauranne Buchanan and Carolyn Simmons (2009). The aim of this paper will be to discuss the the changing consumer experience, competitive landscape and external circumstances affecting marketing opportunities for Starbucks, while determining how Howard Schultz can provide Starbuck’s customers a greater long-term value.

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.

By analyzing the qualitative aspects of Starbucks, the reader can gain a better understanding of the why and how of the organization. This report will examine the company through four integrated lenses: company history, leadership, culture, and strategy. These four components of the company build off one another and help to provide a holistic view of the Starbucks Empire and the health of the company. The history of Starbucks provides understanding of how the company has evolved into a global brand and the direction of future direction. The Starbucks company culture offers insight into the values that drive the company and how members of the organization interact with each other, customers, and other stakeholders. Starbucks’ evolving strategy incorporates the company’s history, both successes and failures, to refine approaches that worked in the past and improving those that no longer serve the company well. Additionally, the innovation and commitment to consumer experience embody the corporate culture,

First, Starbucks has effectively applied the product differentiation strategy. To achieve it, the company has specialized in different product mixes, aligned its business locations to a specific ambiance that suits the context, and varied the customer experience, thus resulting in a higher customer service satisfaction. Further, Coskun, Basligil, and Baracli (2008) note that Starbucks prides in having their customers enjoy a premium service. Therefore, the company’s signature strategy has worked well thus far, as competitors find it difficult to imitate. Second, the enterprise has coordinated its acquisition and portfolio strategy, thus consolidating the market. As discussed in the background chapter, Starbucks has a portfolio network of eight brands under its stable. Third, Starbucks’ international expansion strategy has worked well, with a presence in 70 countries (Starbucks, 2017). These factors, coupled with its financial capability, offer Starbucks an edge over its

The following section of this deals with some of the main factors within the Starbucks companies’ micro environment. More specifically, the following headings will be explored:

Analysis on the marketing environment supports the market expansion and growth. Surviving in the global market is critical for any competitor due to the presence of many competitors. Starbucks is one of the most famous coffee producer and supplier around the world. This assignment is an analysis of marketing theories and different practical situations relating to the case study of Starbucks. The marketing policy of Starbucks is highlighted to identify its strength, weakness, opportunity and threats in this assignment. The marketing orientation is discussed and analysed with the scrutiny on the customer

Suppliers would be another example of someone who would have a primary interest in a firm accomplishing its objectives. Starbucks currently uses a supplier diversity program by actively seeking diverse owned businesses to buy from (“Supplier Diversity,” 2014). All businesses in the United States or Canada, who are certified as "diverse" by a third-party company are eligible to apply for this program ("Supplier Diversity," 2014). This method gives Starbucks an excellent opportunity to have suppliers come to them rather than having to go search for suppliers themselves. They can then look at the options from the applicants and choose a supplier with the best price and quality while also giving back to minority-owned businesses. Overall, this is an excellent program that Starbucks should continue to use their K-cup suppliers.

Starbucks can be categorized as one of the biggest and famous coffee company in the world. In 1971, Starbucks start its first business in Seattle. Nowadays, it owns a large amount of retailer stores which is more than 17,000 stores in 30 different countries (Scribd, 2016). The main product sold in Starbucks is coffee. Starbucks aims to provide their customers with high quality whole bean coffee and best coffee experience. Furthermore, it is more focus on two level of customers which are high end and upper middle class customers (Slideshare, 2016). The goal of Starbucks is to become the most recognized and well-known brand in the world ( Personal, 2010).

Starbucks is a popular coffee house chain with numerous establishments across the globe. The company is renowned for the production of excellent coffee like espresso. Starbucks’ strong brand coupled with experience in the coffee business has helped it to exploit the global market. Starbucks faces stiff competition from McDonald’s and Dunkin’ Donuts. Besides, overreliance on the American market puts the company’s business at risk. The company is yet to exploit the European and African markets fully. Storey and Kelly (2010) hold that Starbucks can boost its performance by investing in consumer packaged products as well as global expansion. In spite of Starbucks having a good strategic growth plan, a lot needs to be done to help it exploit the world market and mitigate risks associated with competition and price volatility.

Since its foundation in 1971, Starbucks has been working uncompromisingly to achieve the company objective of becoming the world's leading coffee brand. Having gone through various stages of growing pain, today the Company is operating with over 10,000 stores in 37 countries. Starbucks' success was mostly a direct result of its aggressive expansion plan, that consequently turned the Starbucks coffee beverages into a most familiar and popular world-leading brand. Although Starbucks has been successful over the past 34 years, there are some potential drawbacks as identified on this Marketing Audit that might warrant some careful

Successful organizations understand the importance of a strong marketing strategy to satisfy customers and sustain growth. Making the right decisions depends on several variables. The purpose of this paper is to describe the four elements of marketing mix and share how Starbucks has implemented an effective and powerful marketing strategy to become the world 's largest coffeehouse chain.

In order to find out CCD’s most important advantages to effectively respond to Starbucks’ challenges, several analytical tools will be primarily used for this case. The SWOT analysis helps to provide a general summary of the company’s internal strengths and weaknesses in their capabilities, as well as the opportunities and threats which are explored in the PESTLE model. The word PESTLE stands for political, environmental, social, technological, legal, economic and they are all belong to the company’s relative macro-environment level factors. Concerning with the company’s industry level analysis, the competitive position analysis will be used to determine the competitive strategy of the company, which contributes to the decision-making stage of the value chain analysis.

In this research report we discuss different entry mode Starbucks uses to enter a new market, why it choses and its success. In addition we will look at the company competitive environment, the corporate strategy and the environmental factors that can impact on the company.