Starbucks Intrinsic Value Report

3396 Words Mar 28th, 2013 14 Pages
Intrinsic Value Report
-Starbucks Corporation-

Table of Contents
A. Starbucks Facts

Person in Charge

B. Industry Analysis C. Company Analysis I -Target Market & Position -Company Strategies -Competitive Analysis -Strength & Weakness D. Stock Recommendation

• • • • •

Starbucks is established in 60 countries worldwide It has a very well known brand name Starbucks will be opening in most of the Canadian Target stores Starbucks has signed an agreement to sell its Seattle’s Best coffee in US Burger Kings and to sell its food products in Canadian Sobeys food stores • After 4 decades of being in the introductory and growth stage, Starbucks has just entered the mature stage of its life cycle • The specialty coffee market is expected
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Install coffee bar at 1)Doughnut & Coffee 14000 stores 2)Bagels, muffins Aggressive marketing 3)Pizza & Sandwich 4)Various Coffee offerings linking with other food line 340mil sales 554 stores in US (5% of Starbucks, 11000) Luxury for affluent target Intense specialty coffee house competition is dispersed among the thousands of independent or small-chain coffee shops around the nation d%2F~stoddj%2FBE%2Fstarbucks%2520final.doc&ei=OTs4UY0K4jXqgGOvoHQDA&usg=AFQjCNEzqXzXgSc9hX8D_j4zzZ20uvUang&sig2=ufkEViw4C7vyaS5Fi0mw_w

External Analysis
 Opportunity & Threats
Opportunities • Market expansion in US & Global markets • Opportunity for increasing coffee price (Specialty coffee affects to regular coffee) • Sales increase following quality based marketing • Fair trade & organic certification Threats • Increasing coffee and dairy costs • Intense competition •The possibility that the demand for specialty coffee is a fad •No substitute coffee bean

 External influences on industry growth, profitability and risk
 Economy downturn lead at home solution  Since 2009, instant demand has been

increasing (9% annually)  Rapid increasing pods

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