...Starbucks and the Lifecycle of Specialty Coffee: An Industry Evolving Introduction Today we stand witness to a new coffee era, one made up of Caffé Lattes, Espresso Macchiatos, Cappuccinos and Frappuccinos. Specialty Coffee is here to stay and no one will be more eager to tell you that than Howard Schultz, CEO of Starbucks, the world’s largest specialty coffee bar. The study of Starbucks Corporation leads one on a multifaceted journey through an organization’s insinuation into a culture, its dominance of a market and its creation of a brand synonymous with loyalty, integrity and longevity. Understanding Starbucks’ development into an international giant and the strategic approach they took to get there begins with the origins of coffee itself. Ever since it first spread through the Moslem world in the sixteenth century, coffee has played a pivotal role in society by providing meeting places for intellectuals from all sides of life to converge. As coffee was slowly introduced to the European world it was recognized for both its sociability and its taste. Soon Coffee houses were prevalent throughout Europe and were the natural locations for political, literary and societal debate. It crossed the Atlantic Ocean in the mid-seventeenth century and replaced beer as New York City’s favorite morning drink. It can be said that the Boston Tea Party was the beginning of not one but two major revolutions in America. The first was the revolt of the colonists against England...
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...Starbucks a Strategic Analysis Past Decisions and Future Options 1 Contents Introduction ......................................................................................................................... 4 Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7 Industry Rivalry ............................................................................................................................ 8 Potential for new entrants ........................................................................................................ 10 Substitute Products ................................................................................................................... 12 Bargaining Power of Buyers ...................................................................................................... 13 Bargaining Power of Suppliers................................................................................................... 14 Summary: The Five Market Forces in Specialty Coffee in 1987 ..................................... 15 Specialty Coffee Industry Attractiveness.......................................................................... 16 Starbucks’ Original Generic Strategy ............................................................................... 19 Starbucks’ Success Factors ............................................................................................... 22 First-mover...
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...Options 4/17/2008 Brown University Economics Department Ryan C. Larson 08’ 1 Contents Introduction ......................................................................................................................... 4 Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7 Industry Rivalry ............................................................................................................................ 8 Potential for new entrants ........................................................................................................ 10 Substitute Products ................................................................................................................... 12 Bargaining Power of Buyers ...................................................................................................... 13 Bargaining Power of Suppliers................................................................................................... 14 Summary: The Five Market Forces in Specialty Coffee in 1987 ..................................... 15 Specialty Coffee Industry Attractiveness.......................................................................... 16 Starbucks’ Original Generic Strategy ............................................................................... 19 Starbucks’ Success Factors ............................................................................................... 22 First-mover...
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...Key Issues & Economic Pressures Impacting the Pharmaceutical Industry in 2015 Presented to: Dr. Siamack Shojai Economic Analysis 6090, William Paterson University December 15th, 2015 The pharmaceutical industry has experienced tremendous growth over the past few decades, with a substantial change in the market dynamic from a provider, healthcare plan & patient perspective. Medical advancements coupled with research & development efforts have expanded the product base in terms of a variety of new treatments across numerous therapeutic classes. As depicted in the illustration below, the total global pharmaceutical sales reached $1,057,000,000 in 2014; based on the past 10 years we can expect the forecast to show a similar increase over the next few years. IMS Health Market Prognosis, May 2015 Of all the changes visible within the pharmaceutical market, there are a few that are truly revolutionizing the market: US healthcare reform, emergence of specialty product markets, price strategy & mergers & acquisitions. The healthcare market has changed under Obama, opening healthcare coverage to more patients & bringing forth treatment & medication to a larger population. The emergence of specialty products pose an entirely new challenge to the market in terms of the doctor’s prescribing habits, healthcare plan coverage & out-of-pocket cost to the patient. This along with other economic pressures brings an entirely new perspective to pharmaceutical...
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...Executive Summary The general manager of WhiteWater Specialties Ltd., Peter Winford, has to decide whether to pursue a potentially large order of fiberglass fascia signs from Consolidated Industries, a major Canadian retailer. The order could potentially result in quintupled sales and would help the Winford reach the personal mandate to diversify the areas of production to counteract the niche seasonal market of the company's main business of manufacturing water slides. WhiteWater Specialties has had mixed results with earlier diversification efforts. Because WhiteWater has tried to branch out in many other areas, this may be the way to go, as the open mould process they use can be adapted to the majority of potential fiberglass signage. The issues with this could be keeping up with the demand of both the fiberglass signs and water slide parts production. Though peak season for slide part production is between November and May, and the majority of signs could be produced during the summer and fall months, there still may be overlapping orders and this could cause lower quality or missed deadlines within the manufacturing facility. It can be recommended that WhiteWater Specialties takes on the expansion from Consolidated Industries, but slowly works it into their production makeup, instead of implementing it right away and potentially overwhelming the company with work, and eliminating any possible contract work from Consolidated in the future. Problem Statement Peter...
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...Strategic Planning of Starbucks (Past Decisions, Current situation and Future Options) [pic] Student ID number: F1005899 Full name: Namrataben Govindbhai Panchasara Intake and group number: 8 Module Name: Strategic Planning Assignment Type: Individual Assignment Date: 04/11/2011 Executive Summery This report aims to strategically based evaluate Starbucks past and current situation and future position of this largely successful company. The analysis uses Michael five forces analysis, Starbucks’ Original Generic Strategy, Company success factor, SWOT, PEST and recommendation for future that Starbucks can organised Reward program Organised, Becoming more Environment Friendly, CD Burning, Install free wireless internet and Rent out meeting space, Increase connection with customers, Continually improve the coffee. At last conclusion and i use book of Michal Porter and some others and electronic articles and websites. Index |No. |Index |Page No. | |1. |Executive Summery |2 | |2. |Introduction of the company |4 ...
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...George Eastman in 1920. Eastman Chemical is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Eastman serves customers in approximately 100 countries and had 2014 revenues of approximately $9.5 billion. The company is headquartered in Kingsport, Tennessee, and employs approximately 15,000 people around the world. See link for detailed company information: Timeline Product Structure Eastman is divided into five business segments including: * Additives & Functional Products * Adhesives & Plasticizers * Advanced Materials * Fibers * Specialty Fluids & Intermediates See Appendix A for detailed segment information. Market Eastman Chemical is part of one of the largest and most important industries worldwide. Chemical production in the United States is valued at $42.3 billion dollars annually. Approximately 1,500 companies compete within this market. While many companies manufacture chemical products, revenue generated from chemical product manufacturing comprises only a small percentage of these companies' total revenue. For this reason, no single industry player holds market share greater than 5.0%. With a mature life cycle stage, the chemical industry is predicted to see -0.1% annual growth in 10-15 years...
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...health, cosmetics, pharmaceuticals, the automotive industry, coatings, the construction industry and the electrics & electronics market. DSM has annual sales of around € 8 billion, a net profit of around € 262 million and employs about 23,000 people worldwide. DSM is a leading world player in many of the markets in which it operates and has plants and facilities on every continent. The company’s head office is in the Netherlands. Over the last decades, DSM has shifted from being a bulk chemical producing company to a company that produces more specialized chemicals and life-science products. DSM Food Specialties: Food Specialties is one of DSM’s 14 divisions. It is a leading producer of value-added ingredient solutions. With 1,300 employees active in 28 locations worldwide, DSM Food Specialties is a truly global player. It has a knowledge-intensive base, founded on two main technologies - fermentation and enzyme technology. Food Specialties’ mission is to exploit this base to research, develop, manufacture and supply effective ingredient-based solutions for the international food, feed and beverage industries. Food Specialties is a B2B-company. In doing this, it aims to be recognized by customers as a reliable partner, supplying innovative products backed up by a high level of technical and application service. Situation: Every 4 to 5 years the strategy for each unit of DSM is defined by the Board. The division DSM Food Specialties is now ordered to concentrate on nutritional products...
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...years depending on the popularity of the product. The gourmet coffee industry is one such area where the popularity of the product with consumers extends its life cycle over many years. The coffee industry as whole brought in total sales in excess of $4 billion in 2011. Sponsored Link DAM SIMPLE Document management made for teams. Try the free plan now!www.dam-simple.com Introduction Stage The introduction stage in a product's life cycle features low sales with high retail prices for goods, high advertising costs and very selective distribution across limited markets. In the modern gourmet coffee industry, the introduction stage occurred in the years before widespread gourmet coffee chains when consumers could only purchase specialty coffee drinks and artisan coffee varietals from specialty shoppes and independent coffee houses. According to NetMBA, a business information website, the introduction stage in a product's life cycle is a period of low to negative profits due to the high costs of advertising and growing a customer base. Coffee Growth Stage Rapid increases in earnings characterize the growth period of a product or brand. Price can stay at its high level during this period if demand for the product remains high, or it can drop to capture more consumer attention. With gourmet coffee, the growth stage occurred during the late 1990s through the early 2000s, when chain coffee shops offering specialty coffee beverages appeared on every street corner across the United...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...problems that impacted sales grows objectives of chemical industry in general and underlying earnings of growth that indicated to be poor. Clariant Ltd is facing problems related to mature market conditions such as high market competitiveness, excessive supply of demanded chemical materials, and variability of alternative products at a low price. The main concern of the company is how Clarient Ltd can fully develop its potential for meeting its sales and profits grows objectives. Company structural organization needs to be changed and improved in order to maximize its productivity and raise the profits of the company. Incentive program has been established, however the company structure as it is requires certain alterations to the incentive program for the sales team. Several competitors have established themselves at the market though positioning and marketing. Therefore Clarient is at the edge to decide whether the positioning will improve its competitiveness at the market. Clarient is working with a key account that is aimed to simplify purchasing operations willing to consolidate the procurement of specialty and commodity products. Production of the commodity products independently due to its focus on specialty chemicals, would lead to high costs of commodity production. - This is part of analysis – no need to write this in the problem! Analysis Product Chemical industry is divided into two categories: specialty chemicals and commodity chemicals. Commodity chemicals...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...Background information about Ladysport 2. Analysis of the industry environment 3. Analysis of the company’s current operations 4. Define new strategic direction 5. New vision, mission, and values 6. Forming objectives Goals 1. Analyze the company, internally and externally, and create objectives to help reach the strategic direction. Background: LadySport is a friendly, owner-run business that promotes healthy living in the lower mainland. Since 1983, LadySport has been providing active women with the most complete selection of athletic wear and shoes anywhere in Canada. LadySport is a company that focuses on serious personal sales and long term customer relationships. LadySport carries a wide range of athletic and casual clothing and footwear with all sizes offered. Outside of general operations, the store has a weekly running clinic and holds 4 Diva Run events a year in order to generate brand interest and awareness. LadySport’s current customer base is comprised of mainly elderly people who are familiar with the store and require a higher level of service and knowledge for difficult fitting issues. Its owners, Phil Moore and Brett Davidson, operate LadySport and take pride in providing superior service to the community they work in. They have maintained sales revenues over the past 5 years and are now looking for ways to grow sales and attain a larger market. External Environment: 1. Does the industry offer attractive opportunities for growth? The global sports...
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...Specialty Chemicals Defined: Specialty chemicals are a category of relatively high valued, rapidly growing chemicals with diverse end product markets. Typical growth rates are one to three times GDP with prices over a dollar per pound. They are generally characterized by their innovative aspects. Products are sold for what they can do rather than for what chemicals they contain. Products include electronic chemicals, industrial gases, adhesives and sealants as well as coatings, industrial and institutional cleaning chemicals, and catalysts. Coatings make up about 15 percent of specialty chemicals sales, with other products ranging from 10 to 13 percent. Specialty Chemicals are sometimes referred to as "fine chemicals." The Specialty Products business provides an ideal growth platform with its balanced geographical exposure across mature and emerging economies, strong technology base and strategic market diversification. Eastman has a significant technical services and application support presence in all its markets, which has been built on long term relationships of trust, collaboration and technical expertise. The business’s differentiated technology innovation is supported by “best in class” process technology and tightly held manufacturing know how. About Eastman: Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver...
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...Q1. How has Panera Bread established a unique position in the restaurant industry? How has this unique position contributed to the firm’s success? Do you think Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry? Why or why not? Panera Bread has established a unique position in the restaurant industry by developing itself with various approaches. First of all, Panera Bread has observed the consumer always wanted good food quality and speed services. This has given the Panera Bread an opportunity to reposition itself by joining the concept of fast food and casual dining category. This category provided the consumer the alternative they wanted by capturing the advantages of the both categories. Besides, with the good timing which became the first mover to this new category also led itself to this favorable position. This new category has made Panera Bread’s position not only unique but also contributed to its success. Panera Bread did a lot of things to distinguish itself from its rivals such as adding specialty food, different menus, catering service, new time suggesting of specialty food and providing inviting neighborly atmosphere. According to the text, Panera Bread serves nearly six million customers a week systemwide and become one of the largest chains. This shows that the unique position has contributed to its success. In my opinion, I think Panera Bread will reach its goal because the company is relying on its unique position...
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