Marketing Analysis : Starbucks Inc.

1067 Words5 Pages
External Environment Financial viability, or being able to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while maintaining service levels, is essential for Starbucks’ continual growth (Falconer, 2009). Generating cash flow, building strong relationships with shareholders and stakeholders, and accurately estimating expenses and sales are all vitally important for financial viability. In recent years, Starbucks has generated top market revenues resulting in sufficient cash flow (Hill, 2015). A variety of factors play a role in generating these revenues. Brand recognition is one of the leading components. Starbucks has strategically marketed toward to a large group of most…show more content…
Starbucks’ top competitors include McDonald’s (MCD), Dunkin’ Donuts (DNKN), and Caribou Coffee (formerly CBOU). As competition and the number of rivals increase profitability decreases. Starbucks has continued to diversify its products as a result of its competitors targeting the larger customer market. According to most recent quarter closes, Starbucks (SBUX) has maintained a fair percent of the market and shows a quarterly revenue growth year over year by 0.18. These metrics compared to other publicly traded competitors are quite good and just at industry averages. See table 1 below. ****Should/could we expand upon how STBKS differs from the other companies which gives it the competitive advantage (I.e. product assortment, costs, wait time, etc.)**** Table 1: Direct Competitor Comparison SBUX MCD DNKN Industry Market Cap: 92.30B 107.00B 3.94B 665.89M Employees: 157,000 420,000 1,584 7.00K Qtrly Rev Growth (yoy): 0.18 -0.05 0.09 0.21 Revenue (ttm): 19.16B 25.64B 800.35M 362.56M Gross Margin (ttm): 0.31 0.38 0.8 0.3 EBITDA (ttm): 4.30B 8.91B 398.82M 33.10M Operating Margin (ttm): 0.18 0.29 0.44 0.08 Net Income (ttm): 2.76B 4.42B 166.68M N/A EPS (ttm): 1.82 4.62 1.66 0.96 P/E (ttm): 34.15 25.23 25.65 34.01 PEG (5 yr expected): 1.83 2.9 1.65 2.17 P/S (ttm): 4.8 4.17 4.86 1.76 (“Yahoo Finance”) Because it is easy for companies to enter into this industry, hence there is usually more
Open Document