Weaknesses Of Starbucks

Starbucks is rated as the number one World’s leading coffee distributor. Customers satisfactions are always be in the center of their business and the company works consistently to maintain it as customer look forward to a unique experience when visiting one of Starbuck stores. With over 12,000 stores worldwide, Starbucks has always aimed at achieving and maintaining competition in the industry.  Starbucks success reside in many factors :  the company is admire and respected worldwide,employees are recognized and respected for what they contribute to the success of the company. Open communication

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks knew their prices are expensive and they did a great thing to solve this problem by opening many stores and provide a nice atmosphere to their customers by serving many kinds of snack, cold and hot beverages, sandwiches. “ Customers say one of the reason they come to Starbucks it because they can discover new things, a new coffee from Rwanda, a new food item. The solutions that I considered is Starbucks need to pay attention to their customers feedback for the price of the product and to try to make their price reasonable to the people over the whole world. Since many people like the atmosphere in Starbucks and its more fancy than Dunkin’ Donuts but the price in Starbucks need to recognized and reduce.

Starbucks is one of the most recognized brands in the world. They believe that the uncompromising quality of their product and their focus on making personal connections with their customers helps them differentiate themselves from other brands.

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)

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.

Throughout the United States and Asia, Starbucks is renounced for their expertly crafted coffee, so much so that an immensely large portion of the nation at least recognizes the logo and the name. This success to this day keeps producing higher returns for investors especially over this last third quarter of 2016. The third quarter had set many new records with Starbucks for both the American markets as well as the Asian markets causing a big boom for the company and sparking excitement within the investors. This record increase “was primarily driven by the opening of 1,876 net new stores over the past 12 months” (Doraisamy 2016). As far as the growth due to the other stores open for more than 13 months, those stores had also seen a hefty revenue increase due to the increased memberships for Starbucks Rewards which “increased 18% year-over-year to 12.3 million active loyalty members in the U.S.” (Doraisamy 2016). This increase in memberships had proven strong towards the likelihood that customers will return at a higher frequency. Recently there has been an increase of 9% profitability in the third quarter which has noticeably been due to the consolidation of their operating margins “due to sales leverage and lower commodity costs” (Doraisamy 2016). This recent success throughout America and Asia along with the mass quantity of stores being opened, has been the main direct cause that lead to the major EPS jump this third quarter. Among the astounding

Starbucks Corporation could continue their expansion into international markets. Currently operating in 44 countries, they should continue to focus on these markets and while opening into new markets. Domestically, Starbucks has become over-saturated, causing their product to lose value. The corporation should narrow their focus on the US market and shift their primary focus internationally. This alternative could increase the product value in America, increase international sales, introduce new markets, and gain new consumers. The success of this alternative also has potential to raise the stock prices for Starbucks Corporation. Considering Americans are over familiarized with their brand,

The Company makes fresh Starbucks coffee and coffee-related products conveniently available via mail order and on-line. It runs over 55 countries in many regions including North America, Asia Pacific, Latin America and so forth. Starbucks headquarter is located in Seattle, Washington, USA. It has approximately 149,000 employees (Starbucks Corporation, 2012), Starbucks main goal is to continue to be the most well-known and famous brand in the world. Hence to achieve its objectives, the company has increasingly expanding its retail and licensed store in the world. (Starbucks, About Us, n.d.)

Starbucks Coffee Company, which is commonly known as Starbucks or Starbucks Corporation, is the dominant world-leading roaster as well as retailer of specialty coffee in the 21st century. Until now, it has over 20,000 stores in the world, which shows a huge number difference between Starbucks and the following competitor - Dunkin’ Donuts, which has just around 10,000 stores (Statista, 2014). The annual revenue of Starbucks skyrocketed in comparison with the last past decades in 2014, reaching around 16.45 billion profits U.S. dollars (Statista, 2014). Starbucks roasts its specialty Arabica coffee beans and retails a selection of beverage products, consisting of fresh brewed coffees, hot and cold espresso beverages, non-coffee blended beverages. In addition, it sells food items such as sandwich or muffin, along with beverage-related equipment. Starbucks main strategies for publicizing business depend on a combination with company-owned and licensed stores as well as joint venture to expand across the globe with its local partners. For the most part, Starbucks applies the same basic collection of products and customizes few additional products depending on customer’s preferences from different countries.

Beginning in 1971 with only one shop in Settle’s historic Pike Place Market for coffee and tea, Starbucks has managed to become one of the most successful companies in the world. It has become number one in the coffee industry. As of June 2012 Starbucks owns 19,763 coffee shops in 59 countries which includes 12,848 in the United States, 1,264 in Canada, 973 in Japan, 778 in Great Britain, 621 in China, 441 in South Korea, 350 in Mexico and 269 in the Philippines. Offering to its consumers’ different coffees with unique flavors, tea and beverages, including food

Rapid global expansion and entering new markets has been a major driver for Starbucks’ success. However, customers become increasingly worried that through the quick growth the corporation is loosing track of its unique customer selling point and the popular Starbucks Experience. Especially emerging markets such as Brazil, India, and South Africa are showing great growth potential through an increasing population within their middle-classes, as well as a growing economy and disposable income. The corporation has already entered these markets and established the brand in tea-drinking nations like India and China, but there is still more room for growth. Also

To understand the Starbucks phenomenon, I think it is crucial to understand what were the points of strengths that have allowed Starbucks to have a great success at the beginning of the company life, as well as those that are the current success factors. In addition, I believe that this reflection should be developed first and foremost in the United States where the project has been successful, and then in the rest of the world where customs, traditions, commercial models and stories completely different from American ones.