January 6th, 2011
Expanding in the Danish market for the coffee shop chain industry – with Starbucks as an illustrative case
Table of contents Figures of contents 5 Title sheet 8 1 Executive summary 9 2 Introduction – what is Starbucks? 10 2.1 Subject field 11 2.2 Problem and problem formulation 11 2.3 Project design 12 3 Methodology and theory of science 14 3.1.1 Three methodological views of Arbnor and Bjerke 14 3.1.1.1 The analytical view 15 3.1.1.2 The systems view 17 3.1.1.3 The actors view 19 3.1.2 Four sociological paradigms of Burrell and Morgan 21 3.1.3 Functionalist paradigm 22 3.1.4 Interpretive paradigm 23 3.1.5 Radical humanist paradigm 23 3.1.6 Radical
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3 Systems Explanation and Systems Understanding page 18 Figure 4 Simultaneous Processes page 20 Figure 5 Four paradigms for analysis of social theory page 22 Figure 6 Combining Arbnor and Bjerke’s thinking with Burrell and Morgan’s page 25 Figure 7 Four paradigms for analysis of social theory and own interpretation page 26 Figure 8 Screening Process for Potential Markets and sites page 30 Figure 9 Basic Design School Model page 31 Figure 10 Framework for creating an expansion strategy page 32 Figure 11 The marketing environment model page 33 Figure 12 Degree of turbulence page 37 Figure 13 Determinates of Customer Perceived Value page 39 Figure 14 The Five-Stages Model of the Consumer Buying Process page 46 Figure 15 A Map of strategic groups in a hypothetical industry page 51 Figure 16 The Business Model Canvas page 56 Figure 17 Market Expansion Matrix- Ansoff’s Matrix page 59 Figure 18 Entry Modes Decision page 62 Figure 19 The incremental strategy (waterfall approach) and simultaneous strategy (shower approach) page 67 Figure 20 Combing methodology and theory page 73 Figure 21 The Marketing Research Process page 75 Figure 22 The division of the population in the 15 biggest cities in Denmark page 82 Figure 23 The age division of the Danish people who lives in the 15 biggest cities page 83 Figure 24 Segmentation of the Danish market by geographical criteria page 84 Figure 25 Segmentation of the Danish market by age page
Coffee consumption in China is highly concentrated in large cities such as Beijing, Shanghai and Guangzhou. Also other cities like Wuhan coffee culture seems to expand. Recently coffee appeals to adventurous young, rich, and urban consumers. This is just because originally coffee is considered as a Western concept to most Chinese consumers. According to Subhuti (2003), the Chinese do not consume coffee because of its potential health value either in terms of modern medical data or traditional Chinese medical concepts. Rather, it has been consumed until now as part of the fascination with western culture that has grown during the past few decades. However the coffee culture is getting well known in China nowadays. Chinese
There has been a tremendous amount of change in the global markets in the past few years. This has predominantly due to the fact that there is a shift in the consumer mindset, consumption patterns, changes in demography and organizational attitude brought through by advancement in technology. This has led to a change in marketing strategies and practices across the world. Marketing thinkers and companies are prompted to frequently re-think their strategies and adopt new theoretical and practical approach to address specific marketing changes and also to think beyond the scope of traditional marketing theories (Constantinides, E, 2006). A majority of the changes were influenced by the
* Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco
Recognition to major coffee chains, in the last two decades the coffeehouse has become a familiar portion of American life. Every day, millions of Americans stop for a specialty coffee. These consumers who would not have dreamed of spending more than fifty cents for a cup of coffee a few years ago now joyfully pay three to five dollars for their specialty flavored hot and ice blended javas.
Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing
"External factors influence a firm 's choice of direction and action and, ultimately, its organizational structure and internal processes. These factors, which constitute the external environment, can be divided into three interrelated subcategories: factors in the remote environment, factors in the industry environment, and factors in the operating environment… In combination, these factors form the basis of the opportunities and threats that a firm faces in its competitive environment," (Pearce & Robinson, 2004, p. 78). To create an experience unlike its competitors, Starbucks must constantly evaluate all areas of their business while capitalizing on economies of scale and eliminating redundancies.
This paper discussed about the Starbucks Corporation, the Mission and Vision statement of the Starbucks Corporation and the strategies formulated and implemented by Starbucks in maintaining competitive edge over its competitors. It also discussed about problems recently faced by Starbucks and recommendations to solve the problems and strategies for potential development of Starbucks in near future.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction .................................................................................................................................... 3 Background Analysis ....................................................................................................................... 3 Business Model Framework ............................................................................................................ 4 Value Creation................................................................................................................................. 5
Starbucks is an American company based in Seattle, Washington, that offers coffee products and café services throughout the world. The company was founded in 1971, and is now the largest coffeehouse company in the world. It now has a total of 23,132 stores in 65 countries and territories, including in the United States, China, Canada, Japan and United Kingdom. Starbucks sells high-quality whole bean coffees from different parts of the world along with other types of freshly brewed coffees, expresso beverages, premium teas, sodas and juices, pastries and confectionery, coffee-related accessories such as the Starbucks mugs, and coffee making equipment. The company sells its special products through its retail stores, warehouse club chains, office coffee distributors, hotels, mail-order catalogs, and online (“Starbucks Company Profile”, 2014).
One of the most vital roles of business leaders today is the ability to conduct a comprehensive and honest analysis of the business. Such analysis can be conducted for strategic and business planning purposes or simply to determine if a company is a good investment opportunity. To demonstrate the importance of business analysis from both a business leader’s strategic point of view and from a business investor’s point view, this paper will provide the following study of Starbucks Coffee Company: (1) SWOT Analysis; (2) Relevance of Threats; (3) Internal and External Stakeholders; and (4) Balancing the stakeholders’ needs.
1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analysis on the marketing environment supports the market expansion and growth. Surviving in the global market is critical for any competitor due to the presence of many competitors. Starbucks is one of the most famous coffee producer and supplier around the world. This assignment is an analysis of marketing theories and different practical situations relating to the case study of Starbucks. The marketing policy of Starbucks is highlighted to identify its strength, weakness, opportunity and threats in this assignment. The marketing orientation is discussed and analysed with the scrutiny on the customer
One company that has been particularly successful in creating an overall company image in my option has been Starbucks. They have been able to maintain a dominant position in today’s market. Where in the morning most of our society needs a good cup of coffee in order to start their day. At one point, we looked at Starbucks as a high-end marketer. A sort of club to belong to. However, things managed to change in the recent years where a 4.00 cup of coffee was becoming a luxury items. This became known as the Coffee Wars. Starbuck had to now face competition from the fast food world. Which was McDonald’s and Dunkin’ Donuts. They started to look at this market as an opening to gain more customers. They started to offer their
Starbucks started its journey back in 1971, and has since grown to serve millions of sociable coffee-goers from around the world. With more than 16,800 locations across the globe as of 2009, Starbucks is still the dominant player in the ï¬eld of upscale coffee houses for mainstream customers. You ask: “How can they be ‘upscale’ but cater to mainstream customers at the same time?” To make a comparison to the fashion industry, upscale brands does not mean that mainstream customers cannot afford it, it means the pricing is within reach, and the urge to purchase a Starbucks coffee over a Tim Horton’s cup of coffee is in the branding. Would a woman rather carry a Guess handbag over a Gucci one? Would men prefer a Toyota Corolla over a Maserati
Following the September 11th, 2011 attacks on America’s World Trade Centers and Pentagon, the United States economy slowed to a preservation stage and in 2002 Starbucks Coffee Company was burdened with declining sales like many other companies. There were two areas that Starbucks needed to focus on to retain their customer loyalty. First, it was reported that “customers’ expectations in customer satisfaction” were not being met by their 4, 500 stores. Secondly, the condition and store cleanliness had been declining and required corporate wide attention to address the problem. Ms. Christine Day, Starbucks ' senior vice president of administration in North America, was in charge of improving these issues and really satisfying their