Real Choices at Starbucks

1276 WordsNov 21, 20126 Pages
Real Choices at Starbucks Starbucks started as small coffee shop in a tourist area called Pikes Place Market in Seattle. The three unknown pioneer of Starbucks wanted to share their passion for brewed coffee and tea. During their first year in the business, they experimented with all sorts of coffee blend until they came up with their own flavor. Their business became an instant success using the word of mouth selling brewed coffee cup by cup. This is what inspired them to open a second store to target the wider market. By the early 1980’s, Starbucks expanded to four new stores in Seattle area. Since then, they became the largest retail company in the world. This coffee company grew from four Starbucks store to having currently 16,635…show more content…
While most people consider Starbucks coffee as a luxury and would pay whatever price is set, there is an increasing opinion that Starbucks charges too much (Higbee 7). Sometimes it is difficult for a company to penetrate the mass market with the prices above market averages. While this weakness may not come to reality in the short term, it is possible that this company is somewhat maturing since they have grown so rapidly penetrating the U.S. market. Opportunities Opportunities present themselves when it comes to Starbucks business strategy which provided the options to strengthen its retail market. Starbucks would not be able to effectively compete with its competitors if it not with these opportunities. They continued their quest by expanding its retail operations and sales. They pursued other opportunities by introducing new products and develop new channels to stay on top. Starbucks is in great position to expand its global business more that they already have. Since they expanded to Europe, Canada, and Japan, they enjoyed much success in these countries and their future plan is to open more Starbucks in Asia, Latin America, and the Far East. Starbucks also created numerous partnerships that will ensure its longevity for a long time. Formed a partnership with Pepsi Company and created a coffee type bottled drink called Frappucino. These Frappucino bottles were currently being sold in shops, grocery
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