Starbucks: United States, Japan, The United Kingdom, China

This report deals with a Strategic Fit Analysis of Starbucks Coffee Company with focus on the United States Segment. Genus (1998) highlighted that strategic fit is the concept whereby strategy is a means for achieving a match between the external environment of an organisation and its internal capabilities, as part of a quest for establishing competitive advantage over rival competitors.

2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.

Starbucks, the leader of the Beverage Industry is known by its franchises around the world. Therefore it has known as a global company in Beverage Industry. This part of essay will indicate company’s external environment via PESTEL analysis. To understand how political, economical, social, technological, environmental and legal issues can affect company’s external environment.

Due to the expansion of social media, Lots of opportunities has been arose for Starbucks. Online networking focused on building customer associations with the company are more viable than a promoting it in a traditional way. In order to reduce their prices and compete with their competitors, Starbucks have a great opportunity to expand their range of suppliers. In this case, when they have lots of suppliers, they can actually negotiate with them and cut down their coffee beans price. So instead of charging the premium price, Starbucks can offer medium price and challenge their competitors. They can expand its branches in those countries where they have potential customers. With a billion customers ready to join those who want instant coffee and breakfast in China and India, Starbucks have a massive potential to expands in these countries, which represent profitable opportunities. Starbucks likewise has the chance to grow its item offerings to tackle the full range sustenance and drink retailers like McDonald’s and Burger King as the shopper

Accounting helps to measure an organizations activities, process data into reports, and translate the results to decision makers. Financial statements and reports help to present the company to the public in financial terms. The information on these data statements can used to evaluate the company through vertical and horizontal analysis. Vertical analysis is the proportional analysis of a financial statement. Normally, vertical analysis is done with a financial statement over a period of time. When using vertical analysis, a line item on a financial statement is listed as a percentage of another item (Harrison, 2015). A horizontal analysis is the comparison of information or ratios over a series of reporting periods. Horizontal analysis helps investors and analysts to control how a company has grown over time. Analysts and investors could use horizontal analysis to compare a company's growth rates in relation to its competitors and industry.

Starbucks Corporation is an American company that was founded in 1971 in Seattle, Washington (Starbucks Company Profile, 2014). It operates in 62 countries around the world, serving its specialty coffee products, teas, food items, and other beverages (Starbucks Company Profile, 2014). Additionally, Starbucks Corporation has a multitude of license agreements with other locations where they sell their products, such as grocery stores and national foodservice accounts (Starbucks 2013 10-K Form for FY ended on September 29, 2013). In 2013, Starbucks reported a revenue of over 14 billion dollars (Starbucks 2013 10-K Form for FY ended on September 29, 2013). The success of Starbucks Corporation, however, comes from a carefully planned and well-executed business model. A thorough understanding of the competitive environment for Starbucks Corporation has allowed the company to flourish in an age where the intersection of convenience and quality are of utmost importance. This report will apply the 5-forces model in order to evaluate Starbucks Corporation’s competitive environment and assess its competitiveness in the near term.

Upon looking at whether or not they should, they must focus on the trends that are developing in these countries. Together with Sazaby (a company known for bringing goods to Japan), Starbucks was able to combine the lifestyles of the Japanese people with the Starbucks product. One important favorable trend that was key in the development of bringing Starbucks to Japan rather than Europe and South America was the fact that Japan has been the third largest coffee consumer in the world and the other regions were more of a risk for Schultz. There are, however, unfavorable trends in bringing Starbucks over such as the fact that the Japanese have not developed the taste for espresso or caffe latte drinks, but they rather prefer instant and ready-to-drink coffee that is offered in vending machines owned by Coca-Cola, which is a highly respected American company in Japan. Another unfavorable trend is the fact that since 1982 there has been a 30% decrease in coffee bars.

Starbucks’ opportunities to expand into new markets in order to develop its global market revenues and profit shares.

.1. Introduction1.1 Distinctive Growth Tale of Starbucks 1.2 Strategic Deportment1.3 Starbuck as a Global Corporation 1.4 Impact on the international economy

First, Starbucks has effectively applied the product differentiation strategy. To achieve it, the company has specialized in different product mixes, aligned its business locations to a specific ambiance that suits the context, and varied the customer experience, thus resulting in a higher customer service satisfaction. Further, Coskun, Basligil, and Baracli (2008) note that Starbucks prides in having their customers enjoy a premium service. Therefore, the company’s signature strategy has worked well thus far, as competitors find it difficult to imitate. Second, the enterprise has coordinated its acquisition and portfolio strategy, thus consolidating the market. As discussed in the background chapter, Starbucks has a portfolio network of eight brands under its stable. Third, Starbucks’ international expansion strategy has worked well, with a presence in 70 countries (Starbucks, 2017). These factors, coupled with its financial capability, offer Starbucks an edge over its

The first Starbucks store was set up in 1971 by three individuals who had a common liking for coffee and

With 23,768 locations, Starbucks is a fast food eatery that can be found worldwide. Although it started in Seattle, Washington, it branched out of North America in 1996 when it opened a store in Tokyo. Almost one third of Starbucks’ stores can be found overseas. In venturing out to other countries, there have not always been easy transitions and there have been barriers along the way. With each move into a new sector, there are possible cultural, political, and economic difficulties that lie ahead. To analyze Starbucks and its level of success around the world, I’ll be using Gramsci’s categories of base, structure, and super structure. For base, I will discuss how economics comes into play in China; for structure, I will explain the political barriers Starbucks faced integrating into the Indian market; and lastly, super structure will be examined by the struggle in Italy regarding cultural differences and Starbucks drinks from around the world.

Starbucks was established in 1971 and it is an established, successful purveyor of Coffee. Starbucks is always known for its “rewarding coffeehouse” experience. In addition to coffee they offer selection of Tazo teas, pastries and other snack items like Panini to please the taste buds. For creating overall coffee house experience Starbucks stores have an appealing music and décor. Their focus in United States is to create a gathering place where people can chat, sit work much more just than a coffee place. Starbucks has a global presence over 17,000 stores all over the world. Starbucks entered India in 2012 as a joint 50:50 venture with Tata Group. This paper focuses on company’s strategy on entering the emerging market and

According to Exhibit 5, Starbucks’ entry into Japan in 1996 was the first time that Starbucks opened its store outside of North America. Until 1995, Starbucks was mostly relied on North American market, which is its home market. Since Starbucks did not have international experience, its entry into Japan was a right choice. Japan’s advanced, organized business infrastructure and environment might help Starbucks to smoothly adapt to international business. Moreover, as the market that has the second-largest economy, the Japanese market had huge potential to be profitable. Starbucks chose a joint venture with Sazaby, the Japanese restaurant

Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.