...I went to caribou coffee yesterday, after I order my drink, I set down by the window. As I was observing the music playing in the background, the first thing I notice was that, it was played at a lower volume. It was a much softer kind of music, the music was slower and relaxing. I didn’t know the song that was playing but it was definitely a song that fit the atmosphere in the shop. It was nice and quiet in there. There weren’t many people there, but the ones who were there, they were reading or was on their laptop working on stuff. The music in the background brings a nice relaxing feeling in there. I felt like the music in there really helps me concentrate on the things that has been going through my mind as i set there and just take that...
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...whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. In 1980 Zev Siegl sold out to pursue other ventures. By that time Starbucks was the largest roaster in Washington with six retail outlets (Anonymous, 2010). In 1981 the small coffee company caught the attention of Howard Schultz who joined Starbucks as director of retail operations and marketing. It was Howard’s concept to create a coffee house type "culture" based on the Italian model of espresso bars. He convinced the founders of Starbucks to test the coffeehouse concept in 1984 in downtown Seattle, where the first Starbucks Caffè Latte was served (Company, Starbucks Basic Timeline, 2010). From there, Starbucks began its initial growth outside of the Seattle area with the opening of stores in Chicago and Vancouver British Columbia followed by the opening of the first store outside North America in Japan in 1996, leading to its current status with over 16,000 stores in over 50 countries. Along the way, Starbucks created numerous opportunities for success starting with its offer of full health benefits to full- and part-time employees and then becoming the first privately owned U.S. company to offer a stock option program that includes part-time employees followed by an initial public offering (IPO), with common stock being traded on the Nasdaq National Market (Company, Starbucks Basic Timeline, 2010). It has also expanded into other markets besides the coffee shop offerings with its...
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...Brief Synopsis Specialty coffee is a strong and growing industry in the United States. Specially coffee consumption increased by more than 48% from 2001 to 2006 and the market is estimated to be over $11 billion annually. Caribou makes coffee the old fashioned way, by brewing it. Also they team up to American icon IBM that aims to improve customer experiences through the use of in-store technology. Caribou Coffee has been able to achieve a competitive advantage by satisfying customer. One way to achieve this is through advanced communication technology and in particular, Wi-Fi. Designed to accommodate the needs of the vast majority of its customer by providing less than one hour per session. The program is about simplicity and privacy with the intention of making each experience a memorable one. It is apparent that in the coffee industry now there is enormous rivalry among competitors which is why Caribou must maintain its differentiation to maintain their customer loyalty. The coffeehouse industry characterized by intense competition not only from the industry leader, but also from the threat of new entrants and substitutes attracted by such huge growth. Conclusion With the industry leader creating new goals that target to make them almost a monopoly in the world of coffee, Caribou is in danger of losing its competitive advantage. In order to compete in the industry and even possible surpass the industry leader caribou Coffee must have a sustainable competitive...
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...Starbucks Coffee Brand Audit Simon Mc Nally Simon Mc Nally Table of Contents Starbucks Brand Audit May 10th 2010 Company Analysis ..................................................................................................................................3 Market Analysis ......................................................................................................................................3 Brand Analysis ........................................................................................................................................4 Consumer Analysis .................................................................................................................................5 Competitor Analysis...............................................................................................................................6 Strategy .....................................................................................................................................................7 Key Fact .............................................................................................................................................................. 7 Target Group ..................................................................................................................................................... 7 Proposition...............
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...18 September 2014 18 September 2014 08 Fall 08 Fall Exercise A - Starbucks in US: strategies and core competencies GROUP 6 Exercise A - Starbucks in US: strategies and core competencies GROUP 6 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Executive summary Within this report the Starbuck’s Corporation is being analyzed, in this way the company can be positioned on how they are performing within the competitive set. Through research Starbucks’ core competencies are found, and on elaborated. Those competencies are researched in the competitive set with the main competitors of Starbucks’ as well, via basic benchmarking there has been determined where Starbucks is within the market. Table of Contents Introduction 4 Core competencies 5 Key competitors 9 Competitive advantages 11 Communication within organization 12 Competency - strategy matrix 13 Conclusion and recommendations 14 Bibliography 15 Appendices 19 Appendix 1: Value chain analysis 19 Appendix 2: SWOT analysis 22 Appendix 3: Functional analysis 25 Appendix 4: VRIO analysis 26 Introduction The purpose of this paper is to analyze both Starbucks’ strategies and core competencies, and use this analysis to assess the degree of synergy between the two. First, the core competencies of Starbucks, specified...
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...1. A. Business Overview • Opened in 1972 in Seattle Washington • Now has 15,000 stores in 50 countries B. Aggregate Market • Consumers who need quality coffee worldwide C. Participating Market • Worldwide coffee shops 2. Market Environment A. Industry Environment • Industry made about $25 billion in revenues • Major competitors include Dunkin’ Donuts, Caribou Coffee, and Panera Bread Company • The specialty eatery industry is fragmented with the top 50 firms make up about 45% of the industry • Market share 1.8% globally and 11.8% domestically, and about $11.7 billion in revenues in 2011 • Life cycle stage: saturation, there are many companies in the market (about 35,000), the industry is highly competitive • Starbucks and other successful competitors use only high quality coffee from suppliers who are socially responsible, which gives suppliers an advantage and increases the cost of supplies • Growth in the industry is stagnant since the global market is mostly saturated, opportunities for growth are in emerging markets B. Competitive Environment • Panera 1. Size - Over 40,000 stores in U.S. and Canada - $1.8 billion in revenues in 2011 - More than $1 billion in total assets 2. Key Customers - Fast food consumers who are health conscience 3. Strategy - Provide high quality food, especially bread quickly and relatively low cost - Provide service in a niche market that other companies largely ignore (fast casual dining) - Avoid discounting, keep pricing...
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...Background Information -Describe and discuss (broadly speaking) the 4 P’s associated with your product/service. Below are the 4P’s described in your textbook, describe and discuss all four of the 4 P’s: - Old 4 P’s-Product, Place, Promotion, Price. New 4 P’s-People, Processes, Programs, Performance. OLD FOUR P’s PRODUCT-Starbucks is the world’s largest purveyor of coffee with over 20,000 store in 61 nations. The company originally started out as a Seattle based coffee house that was known for offering exclusively dark roast coffees. When Starbucks was originally establishing itself and growing in the late 1980’s and early 1990’s dark roast coffees were publicly perceived as being of higher quality. Starbucks purchased Tazo Tea in 1999 thus improving its tea offerings. Lighter coffees were not added until around 2010. The array of products now offered at Starbucks locations has expanded significantly in the last decade and now includes numerous varieties of coffees and coffee products, full leaf teas, snacks, pastries, sandwiches, music CD’s, and many others. The whole bean coffee and Starbucks ice cream are now available in grocery stores as well. A small number of Starbucks locations now also sell alcoholic beverages such as beer and wine. Virtually all locations offer at least a few food items. (Reuter’s Jan 24, 2013.) PLACE-Starbucks Company data suggests that there are currently about 20,366 locations in 61 countries. The company...
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...each segment.” There are different, sufficient techniques to run an operation smoothly. One key step is to understand the customer base. That is simply gathering the information on the consumers who may be in a particular area of where the business will be. The market is to target individuals who share special preferences through advertising and campaigning. The selected locations of Starbucks stores take careful consideration and planning also. The focus is primarily on selling delicious coffee and pastries while providing remarkable service. The corporation has to stay on top of their goals and constantly create new strategies aiming to fulfill the needs of each customer. It is very important to carry out each step of is process thoroughly because each plays a critical role in the success of the overall concept. Lacking just one would make the purpose obsolete. Leaving out any of the key points will indeed be very damaging. The company has been known as the number one coffee selling business. Starbucks has been very successful selling an upper scale brand bringing delight to many who enjoy it. Starbucks has a good target audience ranging from...
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...Omaha Coffee Roaster House Marketing Plan Omaha Coffee Roaster House Omaha Coffee Roaster House Coffee is a never ending journey 1.0 INTRODUCTION Omaha Coffee Roasted House will be based in Omaha, NE serving Omaha metropolis and Surrounding areas, Freshly Roasted Coffee beans with commitment to freshness and quality in every batch of coffee we will roast and sell. We will be offering coffees from all over the world, including single origin, blended, Fair Trade, organically grown, and flavored coffee beans. We will be selling our coffees to our customers through our roasting facility in Omaha. Every coffee we sell will be a small-batch roasted for flavor that will be explosive and complex, nothing like the cardboard that is often sold as “specialty “or “gourmet” coffee in the market. The Roaster house will be committed to provide high quality coffee beans along with varieties of tea at a reasonable price. The roaster’s house will offer customers premium coffee beans from different part of the world roasted to customer specific needs. The roaster house is committed to provide its customer excellent service by meeting specific customer needs for different kind of premium coffee beans by providing amazing coffee beans at competitive prices. 1.1 Objectives The objective of the Omaha Coffee Roaster house is to 1. Sell specialty coffee beans to increase the happiness and value to consumers in Omaha metropolitan area by providing an upscale, quality driven coffee house...
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...Analysis of the Coffee Industry History of Coffee The coffee industry provides its customers with coffee and sometimes other beverages (tea, soft drinks, snacks, etc.) According to Myers, coffee is the world’s most valuable agricultural commodity. Coffee consumers drink different types of coffee, including cappuccino, espresso, mocha, and latte. The coffee industry is in high demand, and the more people drink coffee, the more the quality and value of coffee become more important. Starbucks is in this coffee industry because it meets the consumers demand for a quick way of energy to get their day started. 69% of Americans consider coffee to be an “affordable luxury”. It is available in a variety of beverages and flavors to satisfy the most discriminating tastes. Starbucks missions statements states “Our mission: to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” Starbucks coffee has always been and always will be about quality, according to them. In the five years to fiscal 2013, Starbucks revenue is expected to grow at an average rate of 7.5% per year, with an increase of 11.9% in fiscal 2013 to total $14.9 billion. In the Ethiopian highlands is where coffee trees were originated. The Arabs were the first to cultivate coffee as well as to start its trade. It was then brought to Europe, then in the mid 1600’s coffee was brought to New Amsterdam, which is now called New York by the British. In 100 years, coffee was established as...
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...Situation Analysis: Company Starbucks is a leading international coffeehouse that was founded in the year 1971 and acquired by Howard Schultz, the CEO of the company, in 1987. It has shaped the American culture by altering what we pay for coffee, what we eat, where we meet and how people spend their time socially. It rose from a single location in Seattle to a multibillion-dollar enterprise that operated in more than 17,000 retail stores in fifty countries. Originally Starbucks only sold coffee beans and ground coffee and later on came up with prepared coffee, Italian-style expresso beverages, cold blended drinks, food items, premium-teas, and beverage-related accessories and equipment. However, as the brand moved into new markets because of its aggressive growth strategy, its activities in the retail coffee shops were weakened and this made it more vulnerable to competitive threats from both higher as well as lower quality entrants. Therefore, it had to make decisions on vertical integration related to its expansion into the Consumer Packaged Goods domain. Collaborators The first product of Starbucks was sold through mass distribution channels such as Kraft, Dreyer’s and Pepsi. It also expanded product distribution through licensing agreements with United Airlines and Hyatt. Starbucks also expanded its retail stores. By 2008, 16% of Starbucks revenues came from sources other than the company-owned retail stores. Customers When Starbucks began in the early nineties, the...
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... Min-geuk Kim, Keehyung Kim, Yohan Jo, Huang, Qiuling, Dorjsuren Bayarmaa RE: Starbucks: Delivering Customer Service DATE: May 7, 2007 Market Analysis Starbucks provides the highest-quality coffee what it believes in the world. It has hundreds of product lines and the sales of beverage take the largest percent. Despite of Starbucks’ overwhelming presence and convenience, customers think there was just a little of image and product differentiation between Starbucks and the smaller coffee chains. However, Starbucks has an uncomplicated distribution strategy, and it tries to make customers get entrance to Starbucks products easier and provide more convenience to customers. Moreover, it has company-operated stores located in hightraffic and high-visibility and non-company retail channels. In addition, Starbucks has four major competitors. Minneapolis-based Caribou Coffee which provides the look and feel of an Alaskan lodge has more than 200 stores in nine states. California-based Peet’s Coffe&Tea - the freshest coffee is its strategy - has about 70 stores in five states. Others are Independent specialty coffee shops which offer beer, wine, liquor, satellite television, and internet-connected computers and, Donut and bagel chains like Dunkin Donuts offering flavored coffee and non-coffee alternatives. -1- For product innovation,...
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...Introduction The coffee industry is a multi-billion dollar industry which is getting bigger and bigger each year. Coffee is a huge industry and is the second most traded product in the world after oil. Even though there is an economic crisis going on in many countries, there strong demand for coffee keeps rising. All the major companies including Starbucks are repeatedly raising prices and consumers are spending as normal. Starbucks is an international coffee chain and is the largest such company in the world. The industry that Starbucks can be placed in is within the speciality coffee industry. Starbucks total net revenues went up to $3.032 billion, up 15% on last year. As of January 2nd 2011, they have 17,009 stores worldwide operating in more than 50 different countries. Their products include coffee, hand crafted beverages, merchandise and fresh food. Within the speciality coffee industry there are many companies. Some of Starbucks competitors include 7-Eleven, Dunkin Donuts, Caribou Coffee and McDonalds which are all USA based. In the UK Starbucks main competitors would be Costa Coffee, Café Nero and McDonalds. On top of these big competitors there are countless small independently owned coffee shops. Competitors like 7-Eleven, Dunkin Donuts and McDonalds offer coffee at relatively low prices. These chains simply just sell coffee to customers who want it on the go whereas at Starbucks it’s mainly about the whole ‘Starbucks experience’ as well as the coffee. These establishments...
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...Strategic Alliance- Group Project MARKETING STRATEGIES-615 Introducing to the world Biggest Alliance of the Year 2013 KetelBucks Star One Espresso Shot For People who want more from their Coffee Starbucks Company Profile Starbucks Background: Who are they? Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,891 stores in 62 countries, including 13,279 in the United States, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 179 in Turkey, 171 in Thailand, and 167 in Germany. What do they produce? Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm. 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 or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. StarbucksCompanyProfile Where are they located? Transcontinental (Europe and Asia) Africa South America Oceania Asia Europe North America Turkey Russia ...
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...Background and History GMCR was formed in 1981 as a small café and later in 2006 merged it operations with Keurig. GMCR’s Keurig recognized as the market leader particularly in coffee industry just because of its quality standard and implementation of inventive techniques for brewing and fulfilling different socially responsible practices of business. The specialty of the business is beverages in K-cup portion packs and to sells various kinds of teas, cocoa and coffee. GMCR’s portfolio of brand comprises Van Houtte, Brûlerie Mont-Royal, Brûlerie St and Orient Express. In addition to this organization is also providing wide range of ground coffee and beans in fractional packs which can be easily used by customers of Away-from-Home (AFH) and At-home (AH) markets. This is because AFH and AH has extreme growth potential as no brand of coffee has been doing this to target the attractive markets. Currently, organization is operating with more than 5,600 employees. From the case study it is clear that GMCR announced to form a relationship by mixing the Starbucks and Tazotea brand and basic aim is to give premium quality single cup coffee (GMCR, 2011). So this assignment includes financial analysis, SWOT analysis, Porter’s Five Forces and Key Success Factors. Income Statement The case study shows that GMCR is making growth in financial market so effectively just because of its wide range of quality products. The basic aim of this financial data analysis is represent the horizontal...
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