Real Choices at Starbucks

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality

Starbucks was originally a small waterfront coffee shop located in Seattle that opened in 1971 (starbucks.com- Our Heritage). It is extremely convenient and now has over 24,000 stores in the 70 countries it is located in, which is one of the reasons that it is so well known today (starbucks.com- Starbucks Coffee International). There is a large variety of coffees you could get, however, they do not focus solely on coffee. They also sell teas, smoothies, pastries, and more. Their mission is to “inspire and nurture the human spirit- one person, one cup and one neighborhood at a time,” (starbucks.com- Our Heritage). It is a place that people can work on computers, study, or hang out at, so it is constantly in business.

The purpose of this analysis is to evaluate the Industry’s features and the company’s strategy. The main analysis in this project is external analysis and internal analysis. External analysis is contain of strategy group, five forces, partial SWOT, PESTEL, Industry life cycle and Internal analysis is contain of market segmentation, CSFS, partial SWOT, generic strategy, Resources and Core competency, the Boston matrix, the Ansoff matrix and financial analysis. At last the recommendation part will indicate the company’s future prospects.

Starbucks has become the world leader as the largest coffeehouse company in the world, with 23,132 stores in 65 countries, including 12,937 in the United States, 2,004 in China, 1,416 in Canada, 1,135 in Japan and 849 in the United Kingdom (www.starbucks.com). Since its creation in Seattle, 1971, the coffee giant has several different product lines from pastries, flavored hot and cold drinks, whole-bean coffee, micro ground instant coffee, bear, wine (at some locations), entertainment to include music, books and grocery store packaged products. Their mission is to establish Starbucks as the premier

What is so extraordinary about Starbucks coffee? To most people who are addicted to drinking Starbucks coffee, its delicious taste keeps people coming back for more and more everyday. The widely known coffee company, Starbucks, captures the attention of its customers and keeps on feeding them regardless of their high prices. Starbucks is bought by many celebrities and is displayed in movies and in other media. It isn’t really a family restaurant, but has become a “fashion trend” on college campuses and in big cities. Starbucks offers a

According to one source during the 1970s, “Starbucks was a local, small-scale coffee bean roasting and sales operation in Seattle 's Pike Place fish market in Washington state. In the 90’s it had more than 700 outlets in North America, sales of $630 million and an ambition to reach 2,000 coffee shops worldwide by the

Due to the expansion of social media, Lots of opportunities has been arose for Starbucks. Online networking focused on building customer associations with the company are more viable than a promoting it in a traditional way. In order to reduce their prices and compete with their competitors, Starbucks have a great opportunity to expand their range of suppliers. In this case, when they have lots of suppliers, they can actually negotiate with them and cut down their coffee beans price. So instead of charging the premium price, Starbucks can offer medium price and challenge their competitors. They can expand its branches in those countries where they have potential customers. With a billion customers ready to join those who want instant coffee and breakfast in China and India, Starbucks have a massive potential to expands in these countries, which represent profitable opportunities. Starbucks likewise has the chance to grow its item offerings to tackle the full range sustenance and drink retailers like McDonald’s and Burger King as the shopper

Starbucks’ story began in 1971 with a single outlet in Seattle, USA. From the onset, Starbucks set out to be pioneer in coffee industry and it offered one of the finest roasted coffee beans. Now, Starbucks operates in 67 countries and has opened over 22,000 stores. Currently, it is the largest coffeehouse chain in the world. It is estimated to have an operating income of $3 billion and employees around 191,000 people around the world. (Starbucks Company Profile | Starbucks Coffee Company, n.d.)

The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)

Coffee has become an integral part of a daily life for most part of the population. Starbucks has become an iconic brand whenever people think of coffee and it has changed the way people consume coffee across the globe. Starbucks was first started as a retail coffee shop in the year 1971, Washington. As on November 2016, Starbucks is operating 23,768 stores across the globe & Starbucks corporation is the leading retailer for roasted and specialty coffee with stores and outlets spared across, 13,279 in the United States, 1324 in Canada, 989 in Japan, 851 in China,806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in Philippines, 171 in Thailand and 8 India and more. Starbucks aims to become the consumers favorite coffeeshop and to achieve that goal the company primarily focuses on customer services along with their satisfaction as their primary target. So, to prove that Starbucks corporation S mission, value and vision statement is, “To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” [2]

Over the past twenty five years, Starbucks has been leading the coffee revolution and turned a dying industry upside down by mainstreaming their stores and creating a public fascination. From the beginning of Starbucks stores through 2006, they have opened stores all over the U.S. and will be taking it overseas. Starbucks is leading the coffee revolution and has expanded their reach all over the world. With this much growth, it is easy for the company to lose their edge by forgetting the reasons they have become so large from the beginning. In this analysis, I am going to go over an economic assessment, marketing

In terms of competition and the forces, which could limit the success of Starbucks it is important they stay ahead or even with other companies concerning innovative products. Many more micro companies are coming up with new products with a similar quality and a lower price/cost. It is important that Starbucks continues to search for innovative products to continually satisfy their customers. At the same time “rivalry” amongst Starbucks and smaller providers of coffee will continue to increase as the demand for coffee continues. The buyers bargaining power is significant as they can determine the cost, type of product, quantity and ultimately

Starbucks is not only a high-priced coffee shop but it offers a combination of quality, authority, and relative value. Starbucks sets its prices on the basis of a simple idea: high value at moderate cost. When people feel that they are getting a good deal for their money, they are more likely to pay a higher cost. Quality is key.