Starbucks Market Conditions – Present and Future Essay

5366 WordsMay 17, 200822 Pages
Starbucks Market Conditions – Present and Future Starbucks is a multinational coffee and coffee house chain company founded in 1971 and based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 15,011 stores in 42 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, snacks and items such as mugs, and of course their well renowned coffee beans. This analysis will provide an overview of Starbucks and its industry; examine the current market and future market conditions and suggestions for maximizing the organization’s future profits and growth. Starbucks has expanded rapidly over the years, opening a new store every workday during the 1990’s. The first Starbucks location outside of…show more content…
Those regulations include tax laws, food safety guidelines, the Fair Labor Standards Act (FLSA) for the control of child labor, minimum wage, tips, overtime, immigration laws, and the Americans with disabilities Act. In addition to the US laws listed, Starbucks is required to follow the laws of each state that they operate in, and the laws of other countries when doing business outside of the United States. Recent market research has shown that Starbucks is not meeting its customers' expectations in terms of customer satisfaction in terms of the efficiency and speed of service. Given that there is a strong, positive relationship between customer satisfaction and future potential sales, achieving high customer satisfaction is a key factor to Starbucks' sales growth. Although customer satisfaction is the key underlying strategic issue, other issues must be considered when evaluating various alternatives. While the importance of these issues may vary, it must be ensured that recommendations do not conflict with the core values, long term goals, and the image of Starbucks. Some important issues include the overall strategy and pricing objectives. Starbucks' long term marketing strategy must not be compromised in terms of Porter's Generic Strategies and Starbucks' pricing objective is based on a Premium Pricing Strategy (high quality and high cost). Starbucks falls into the market

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