Market Review Exercise : Starbucks

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MARKET REVIEW EXERCISE--STARBUCKS Introduction Market positioning and growth strategies play an instrumental role in sustaining the competitive advantage in the highly competitive global beverage industry (Frigenti, 2012). By analyzing the strategies adapted by the Starbucks, one of the leading global coffee retail chains in the world, this report will provide insights about the latest trends and the key factors that play an influential role in beverage industry (Dermot, 2013). This report will also discuss various opportunities that case study organisation can look into to improve its profitability and will also outline the key threats it needs to tackle in the future to remain competitive in the market. Key trends in the…show more content…
The other key factors that play an instrumental role in the beverage industry in the recent years include the pricing strategies across the globe, per capita income, awareness towards health and the changing demographics of the region in which the companies operate in (Lyndon, 2011). As the quality and the quantity of the coffee beans produced in several regions play an important role in the value chain of many organisations including Starbucks, it is important to understand that the profitability margins and the market costs are largely dependent on volatility of the coffee bean prices (Dermot, 2013). The prices of the coffee have risen in several countries due to the shortages in the supply of the raw materials. However for the next five years up to 2019, the prices of the coffee beans are projected to decline which is likely to translate into higher profitability of the organisations such as the Starbucks through lower market costs (Frigenti, 2012). One of the key trends in the beverage industry is the increased awareness of the consumers towards healthy consumption of both the food as well as the beverages. So the quality along with the taste of the beverages offered by the companies such as the Starbucks plays an instrumental role in sustaining the competitive advantage in the highly competitive market (Lyndon, 2011). Starbuck’s Market positioning strategy: The case study organisation Starbucks has firmly established itself in the
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