Starbucks Final Case Study

Starbucks is a worldwide coffee company that produces world-class coffee, pastries and beverages. They are known as one of the most productive global coffee companies. Starbucks began as a small coffee and was founded by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle, Washington in 1971. It is now headquartered in Seattle, Washington and incorporated in Olympia, Washington. The company’s fiscal year end date is September 27th. Although Starbucks has its own audit and compliance committee, that puts together their financial statements and reviews all accounting and financial processes pertaining to the financial status of Starbucks Company, KPMG also audits their financial statements.

Starbucks has developed a brand image that has revolutionized coffee drinking experience. It has created an ambiance that is designed to attract customers and keep them coming back to Starbucks stores. It offers wide varieties of services such as comfortable seating areas with unique music and free wireless Internet for their customers while sipping their favorite coffee. This distinctiveness sets Starbucks apart from most of its competitors and has allowed the company to successfully grow and profit while charging premium prices for their products.

Retail: The integration of retail is also a source of competitive advantage because this capability is also valuable and rare. Through Starbuck's full control and consistent management of the distinctive Starbucks experience, the company is able to create a strong brand equity. Establishing a strong brand equity allows the company maintain market presence. Additionally, considering that there are many coffee producers competing against Starbucks, having a strong brand equity allows the company to differentiate themselves.

Starbucks is competing in an industry where marketing principles has to follow the differentiator strategy or they will lose market share. The company goal is to create high value for its customers, or the customers will simply find another place to spend their money. Starbucks marketing principles are the basis of the company's competitive advantage within the coffee industry. Starbucks products are associated with high quality, and the company dedicates itself to producing high quality products. Because of this association with high quality, Starbucks has been able to charge a higher price or premium for its products. As long as the company can protect its reputation for high quality and strong values, it will be able to maintain its premium prices.

Customer satisfaction is a key component to any successful business, especially one in the coffee industry. Starbucks started as a small coffee shop in Seattle in 1971. Howard Schultz, the chairman and chief global strategist, joined the marketing team in 1982 with a vision—a vision to capture “the live coffee mantra.”[1] Until the early 2000s, before Starbucks took off, there were limited places for people to socialize outside of work and home. When Starbucks infiltrated the market as a “third place”, it found sudden success. In 2002, Starbucks was the dominant specialty-coffee brand in North

It’s a known fact that Starbucks is one of the leading brand in the market.When we analyse the market we find that Mcdonald 's and Dunkin are the competitors in the same product segment. So comparing Starbucks with these competitors will throw light on its grey areas, process and competitive edge in the market.

The key issues facing this firm were its attempts at massive expansion and creating new value innovation. The need to expand could cause the company to become over exposed and risk its ability to change. New players in the field such as McDonalds pose a new potential threat of competition, though it is unclear if they share the same market. What can Starbucks do to compete with the competition? There are alternative actions Starbucks can take to secure its competitive advantage it has upheld for so long. The one item that truly

Thus, it is evident that the Starbucks is well positioned around its strengths, which far outweighs its weaknesses. The company must maintain its supplier relationships, and continue to offer compelling and premium products to its customer base in order to stay relevant and compete against other coffee giants.

The company competes with other sellers, like Dunkin Donuts and McDonalds, in the coffee market, but ultimately is overwhelmingly dominant. In the monopoly, Starbucks has had to create a unique identity and brand image for itself in order to succeed amongst competitors. Starbucks has been able to successfully differentiate itself from its competition by priding itself in quality assurance to its customers as well as its distinctive brand marketing strategy, which includes a large number of stores and little to no paid advertising; the company feels their high quality products speak for themselves and a high presence of storefronts allows customers to purchase their products at their own

2. Offers high quality coffee: The coffee industry is highly competitive, so one of the Starbucks basic strategies is its product differentiation. Even with the high price range of their product, customers are ever willing to pay premium price. Their customer service is outstanding, which gives them more competitive advantages. The cafe giant plans to speed up the presentation of the roaster

However Starbucks, are targeting to differentiate based on quality.  They have decided to increase their product line where high quality and more costly items are presented: Starbucks is introducing coffee made using rare, luxurious coffee beans.  Contrasting Costa Coffee, they are aiming to compete using a low-volume, high-margin sales method. Starbucks appears to be generating a more sustainable marketing strategy that will prove to be more competitive in longer term. Competitors taking chance to reduce the price, announcing a competitor product, persistent growth of production to improve the market share. Starbucks substantial invention their products which also competitors will gradually keep up with. It is very difficult for Starbucks as a competitor to keep the fixed cost against the inconstant cost.

We should create a brand equity that gives Starbucks a strong brand and good impression to the market (through brand image and brand meaning). We have to ensure that the depth of brand awareness should influence consumer’s likelihood when Starbucks comes to mind. Then afterwards we would definitely need to work on the performance section. As we know currently Starbucks is competing with fast food chains that are offering coffee, however their coffee’s quality won’t be as high as Starbucks. With that being said, what we should do is to emphasize our high quality coffee to appeal the market. We should also showcase our tangible products such as mugs, tumbles, glasses and showcase the reliability and durability of our products. We should always try to keep our prices affordable to the market if we are to compete with fast food

Marketplace competition from major rivals is the strongest market force that Starbucks has to address. Although it holds a preeminent position in the coffee shop marketplace, there is fierce competition from rivals such as Dunkin ' Brands Group and McDonald 's “McCafe”.

There are many opportunities for Starbucks to succeed in their industry. These opportunities include expanding of product offerings, entering foreign markets, and brand awareness. In expanding of product offerings, we have seen Starbucks

Starbucks is and has always been a coffee shop. Some of its main competitors include McDonald’s and Dunkin Donuts, who started as a fast food restaurant and donut shop respectively. Because Starbucks helped introduce “gourmet” coffee and espresso to the popular culture, they continue to function as an educator of the public in coffee culture. This helps paint Starbucks as a leader and innovator in their market, giving them yet another advantage over their competitors.