Starbucks, Case Study

2099 Words Mar 31st, 2013 9 Pages
December 3, 2012
December 3, 2012
Andrei Gavriluta
Strategic management
Birkbeck, University of London
Andrei Gavriluta
Strategic management
Birkbeck, University of London
Starbucks in the us: too much coffee spilling all over?
Coursework - Essay
Starbucks in the us: too much coffee spilling all over?
Coursework - Essay

Table of Contents

I. SUMMARY1 II. CASE STUDY ANALYSIS 1 i. STRATEGIC POSITIONING AND MARKETING MIX1 ii. PORTER’S FIVE FORCES2 iii. SWOT ANALYSIS3 iv. EXTERNAL ENVIRONMENTAL FORCES – PEST ANALYSIS3 III. CONCLUSIONS4 IV. REFERENCES5

I. II. SUMMARY
Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it
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Additionally, promotion can be considered as a marketing strategy which helps the increase in sales (Shimp 1997:42). Starbucks attempted to establish a national monopoly without having to use advertising. They relied on organizing events and promoting their brand – by using mugs and T-shirts on which they printed artworks that were a reflection of a city’s personality.

ii. PORTER’S FIVE FORCES
According to Michael Porter, “Every industry has an underlying structure, or a set of fundamental economic and technical characteristics, that give rise to these competitive forces” (Porter 1998:23). The forces mentioned above are: industry rivalry, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of buyers. Additionally, Porter mentioned that: “Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda or action” (Porter 1998:22).
By applying the industry rivalry concept, although Starbucks has other competitors, they are comparatively smaller and they often focus their business in certain areas or regions. Some of Starbucks’ competitors are Coffee People, Gloria Jean’s, Second Cup, which are currently expanding or planning to expand their businesses nationally or internationally.
Starbucks is undoubtedly dominating the coffee industry, however that does not exclude the entry of new rivals. For example, McDonald’s, Burger

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