Starbucks Corporation, An American Coffeehouse And Coffee Company

707 Words Sep 29th, 2015 3 Pages
External Analysis
Executive Summary

Starbucks Corporation, an American coffeehouse and coffee company, was founded in Seattle, WA in 1971. Starbucks has become an industry leader in the roasting, marketing of specialty coffees, and retailing of their various coffee and tea products and accessories around world. Starbucks employs approximately 182,000 people of all walks of life across 21,366 company operated & licensed stores in 65 countries worldwide. Their unique product lines include high quality, hand roasted moderately priced coffees, teas, and numerous fresh food options throughout their stores and other retail outlets, such as grocery stores and specialty shops.
External Environment of the Coffeehouse Industry
Starbucks operates and competes primarily in the retail coffee and snacks store industry. This industry experienced a major slump during the economic crisis beginning in 2009, where tastes changed significantly and people were not spending money on specialty items, such as higher priced coffee and snacks like before. Luxuries of eating out were replaced with lower priced items to fit into a shrinking budget of most Americans. Prior to this, the industry had a decade of growth consistent. The retail value of all U.S. coffee sales in 2001 was $18.5 billion, a one-third increase from 1995. In 2002, the coffee market in the U.S. was comprised of 79 percent of adults over the age of 18, including both daily and occasional drinkers. Daily coffee…
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