Starbucks : A Competitive And Expanding Market Segment

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The coffee industry has become a very competitive and expanding market segment in North America, including companies like Dunkin, McDonalds, Nestle, Burger King, Caribou Coffee, and Costa Coffee. The top leading coffee corporation in this market is Starbucks with Dunkin and McDonalds trailing close behind. This corporation has reached a maximum 36.7% market share, well above Dunkin ranking at 24.6% and McDonalds at 19%, with Starbucks and Dunkin making up over 60% of the market share (Geereddy, 2013: see appendix 1). Starbucks is a retailer, roaster, and marketer of high-quality whole bean coffee. With more than thirty blends of specialty coffee, hand-crafted beverages, smoothies, and teas, Starbucks’ mission is to inspire and nurture…show more content…
In the last ten years, the annual revenue has more than tripled being reported at $16.5 billion in 2014 (S&P Capital IQ NetAdvantage, 2014). Over the last four years, Starbucks has an annual growth rate of approximately 11.1%. If this continues, Starbucks is expected to jump in revenue from $14.89 billion up to $20 billion in 2017. Looking in the future five years from now, analysts have predicted that Starbucks will grow earnings at an annual rate of 17.99% (Sharma, 2014: see appendix 3). Starbucks seeks to improve business by focusing on customer relationships, re-energizing brands to create an emotional connection with the customers, and increasing and expanding locations outside the U.S to generate international profits. In order to accomplish these goals and objectives, Starbucks intends to focus their efforts on China for market expansion. Starbucks Corporation is known for being a strong supporter of serving the best products while following high ethical standards, engaging in community involvement, and committing to environmental stewardship (Geereddy, 2013). Starbucks seeks to achieve this by focusing on coffee as the main market segment. This corporation is known for serving the best coffee that is grown under standards of quality while using ethical practices in the process (Starbucks Company Profile, 2014). As of September 28, 2014, the total revenue count in America was reported to be $11.9 billion with an
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