Price Analyst in Marketing

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Q1,

According to Starbucks performance in global market during the last a few years, and the current global tough economic situation, it suggests that Starbucks should really focus on how to maintain the current exist stores more sustainable in profitability and environment friendly instead of rapidly increasing growth as to reach 40000 stores target. First, according to the case of “Starbucks-A paragon of Growth and Employee Benefits Faces Storm Clouds “ study, we found Starbucks has closed almost 7100 stores in USA market because of economic clash. It also mentioned that the raising of strong competition of MCD, who provide much cheaper price of coffee. The heavy pricing completion from competitor and slowing economic drives
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Q (2) Under graph is from the executive summary section of Starbucks.com, the Document of Webcast and Presentation report. It shows that Starbucks own 32.6% share in coffee and Snack Shops in US 2011. The 32.6% market share of Starbucks in snack and coffee industry is couple the market share of its competitor – Dunkin Corp.. Moreover, I believe its market share still has room to grow in the future to reach 40 percent of market share in the world, as –worldwide coffee empire –Starbucks.

Q(3)

From the overall graph, it demonstrates that Starbucks is recovering now, but it hit badly during the financial crisis from 2008 to2011. Although the average store’s net profit is very positive, the number is clearly fluctuating, especially recently year between 2008 and 2012. As result of the history experience, Starbucks should become stronger to prepare the next economic clash hit the market downside as 2008.

Q(4)

Lastly, combining all the research above question 1,2 and 3, we know more about Starbucks and its internal operation strategies and external marketing strategies. Although they have made huge accomplishment to become the coffee emperor from a tiny coffee shop, the growth of profitability is unstable, especially during the economic downturn period. In short, I believe Starbucks should adjust the plan a little bit by put priority in maintain company long term grow and make it strong to prepare for

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