TABLE OF CONTENTS
STARBUCKS CORPORATION PRESENTATION 4
1. STARBUCKS COMPANY 4
1.1. Company Overview 4
1.2. Business Description 4
1.3. The core product 5
1.4. A few financial data 5
1.5. Starbucks mission statement 7
1.6. The vision 7
1.7. SWOT analysis 8
STARBUCKS MARKET: THE ANALYSIS OF THE COFFEE MARKET 10
1. INTRODUCTION 10
2. GLOBAL HOT DRINKS MARKET 10
3. THE US HOT DRINKS MARKET IN 2003 12
4. STARBUCKS MAIN COMPETITORS 13
4.1. Competition tree - direct and indirect competition - 15
4.2. Market share 16
4.3. Porter 5 forces Model 17
4.4. The perceptual map 18
THE DECISION WHETHER TO INTERNATIONALIZE OR NOT 20
1. INDICATORS OF INDUSTRY GLOBALITY 20
2. INDICATORS OF PREPAREDNESS FOR INTERNATIONALIZATION 21
3. THE
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Its stores also offer a selection of fresh pastries and other food items, sodas, juices, coffee-making equipment and accessories, a selection of compact discs, games and seasonal novelty items.
1.3. The core product
The Starbucks' core product is coffee. Starbucks offer a large and diversified range of products about the coffee theme: hot and cold coffee beverage, ice cream...
Beverages:
Italian-style espresso beverages
Roasted whole bean coffees
Tea Products
Fruit juice
Frappuccino
Starbucks Double Shot
Sodas
Food:
Sandwiches
Salads
Pastries
Premium ice creams
Non food items:
Mugs
Travel tumblers
Coffeemakers
Coffee grinders
Storage containers
Compact Discs
Games
Seasonal novelty items
1.4. A few financial data
Starbucks market share of the coffee-drinking market in the US is 7% and 1% share internationally.
The coffee chain has become a public company in 1992 and its stock value has been growing from $3 in 1994 to $53.60 in 2004.
In 30 September, 2003, Starbucks operating income was $ 424.71 million (source: financial and operating summary, 1998-2003).
1.5. Starbucks mission statement
"Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow."
The following six guiding principles
Another core strategy of Starbucks is the ability to create product differentiation. The brand is known for high quality and this creates customer loyalty. They purchase high quality handcrafted coffee, tea, other beverages, and food made fresh every day from superior ingredients. They are keeping up with their product differentiation by venturing into tea and juices. Along with gluten and high fructose corn syrup free products and offering organic or preservative free options. Starbucks sells beverage products and license their trademarks through other frequencies such as approved stores, grocery stores, and foodservice accounts.
Starbucks also sells pastries, sandwiches, yogurts parfaits, salads, fruit cups, and oatmeal. Of course they also make (which is what they are known for) the infamous Frappuccino.
Have you seen the latest financial report that should have come out two months ago? Let‘s start with 2006 to the most recent 2007 report. Company History Sandra had already collected some basic company information about Starbucks. The Starbucks Company, Inc. sold coffees, teas, and other drinks; foods items; accessories and equipment through retail outlets. It also sold coffee beans, teas, and cold drinks wholesale. The company began in 1971 in the Pikes Place area of Seattle, WA. It had expanded its number of retail stores to over 15,000 located in both the US and internationally by 2005. In 2005
These products, as well as the company’s Ready-to-Drink product line (bottled coffee and tea available in sizes and locations similar to what one would find Gatorade or Naked Juice), has allowed it to move beyond the simplistic produce-and-sell business model found at its stores and into the retail market. Having focused on the retail market for the better part of the last decade while still maintaining its store operations (now with more than 20,000 stores worldwide), Starbucks has seen its market share increase exponentially while its competitors, such as Dunkin Donuts, have seen far less success. (As an example, Starbucks has a market cap of $84 billion while Dunkin Donuts has a market cap of less than $5
Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?
Starbucks is an international coffee company based in Seattle, Washington. It is the largest coffeehouse company with revenues of $ 10.71 billion (2010) and net income of $ 945.6 million. With shares trading at $ 55.58 per share (as of 29/5/2011), it has a market value of $ 41.87 billion. It currently has 19,555 stores located in 58 countries with more than half of its stores located in the United States.
Starbucks sells hot and cold drinks, coffee beans, salads, hot and cold sandwiches, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal
Starbucks Corporation is a Seattle (USA) based largest coffeehouse company in the world representing one of the most recognizable logos and continually expanding with diversification approach. It operates in over 50 countries with 19,767 stores1 (as of Sep’2013) including the stores in USA and has more than 7,800 franchise units worldwide. It has a wide variety of product lines along with coffee which included but not limited to beverages, pastries, fresh food, whole coffee beans and merchandise. Many of its products are seasonal and specific to the culture or local responsiveness of the country they are doing business.
As far as the industry goes, Starbucks is classified as a specialty eatery within the service sector. They are currently ranked 196th on the Fortune 500 for 2014 which is 12 spots up from last year’s Fortune 500 rankings. Starbucks, believe it or not has been around for 42 years and in 2013 has reached record highs with consolidated revenues of $14.9 billion which is a 12% increase from last year (Starbucks Annual Report, 2013). The President, Chairman and Chief Executive Officer of Starbucks is Howard Schultz
Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier roaster, marketer and retailer of specialty coffee around world. Starbucks has about 182,000 employees across 19,767 company operated & licensed stores in 62 countries. Their product mix includes roasted and handcrafted highquality/ premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts.1 Starbucks also markets its products mix with other brand names within its portfolio of companies,
Starbucks ' mission is “To inspire and nurture the human spirit- one person, one cup
Q3 2008, Starbucks reports net loss of $6.7 million compared to Q3 2007 net income of $158.3million
The goods that are produced by this company are coffees, teas, expresso beverages, equipment, drinkware, and foods. Starbucks also produce goods that would fall under a miscellaneous group, such as: bottled drinks, Frappuccino blended beverages, smoothies, and packaged goods (MarketLine 23-25). Their line of business that’s most profitable are their beverages. During Starbucks 2015 fiscal year, 79% of their revenue was attained from their company-operated stores (United States Securities and Exchange Commission). Starbucks beverages include; a combination of more than 30 coffee-blends and single-origin premium coffees. In addition,
Starbucks Coffee Corporation is not only of the leading companies that retails and markets coffee globally but one of the top companies overall in the world. There are approximately 7,300 coffee shops and kiosks in the United States and approximately 3,000 shops in 34 other countries. Starbucks products include coffee, coffee drinks, pastries, sandwiches, ice cream, espresso machines, coffee brewers and drink ware. Starbucks is a public trading company on the stock exchange, $87.00 per share, approximately $6.37 billion in sales and 115,000 employees globally.
Since starting its business operations in 1971 Starbucks has worked its way up to becoming the global leader within the specialty coffee industry and has revolutionized not only this sector, but the entire coffee culture. However, through rising competition and increasing criticism within the media and public, Starbucks has to re-think its position and further growth. The corporation still has various opportunities to expand and improve its business, and should take actions in order to defend its position.