RESUMING INTERNATIONALIZATION AT STARBUCKS

1684 WordsMay 2, 20147 Pages
Introduction Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world. The first Starbucks store was opened in Seattle in 1971. The current CEO, Howard Schultz, joined the company in 1982 and decided bringing the Italian coffee-drinking culture to the United States. In 1992, the company went public. In 1996, with the home market becoming increasingly saturated, Starbucks opened the first outlet in the Far East. Ever since, the company has pursued a relentless international expansion. By 2012, Starbucks had achieved a global reach of 18,066 stores in 62 countries. With revenues grew on average 30 per cent per year, Starbucks experienced substantial growth from $160 million in 1993 to $10 billion in…show more content…
It has high quality requirement on coffee beans. In that case, the company cultivates the stable relationship with its own suppliers. So Starbucks has high cost on switching suppliers. However , Starbucks highlights and chases the experience that their customers can obtain in coffeehouse. The company positions itself as the third place besides workplace and home. This high level of experience and also good quality coffee raise the switching cost of customers and reduce the power of bargaining. SWOT Analysis Strength Starbucks stands one of the most recognized and respected brands in the world. It has the largest chain stores, which is operating approximately 18,000 stores in 62 countries. Besides high coffee’s quality, the strongest advantage of the company is the experience it delivers to the customers. Starbucks is not just passionate purveyors of coffee, but everything else that goes with a full and rewarding coffeehouse experience. The company also provides well offers to employees compared with other competitors in the industry. Weaknesses Starbucks has high price in the market based on its quality and so-called experience. The main was the high cost of the products. It contains the rent of the stores where located in very popular districts. The company offers good paid to their employees. And also, it is influenced by the coffee beans’ price. Starbucks’ main target consumers are well educated white collars. So it is

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