Free Essay

Starbucks Competitive

In:

Submitted By dangminhduc1991
Words 1474
Pages 6
Starbucks đã lựa chọn một phương pháp thích hợp dựa trên sáu nguyên tắc nền tảng cơ bản được gọi là Coffe and Farmer Equity (C.A.F.E) Practise. Những nguyên tắc này bao gồm: trả giá cao để giúp đỡ nông dân tạo ra lợi nhuận và hỗ trợ cho gia đình họ; việc mua các loại café có sự bảo tồn, chứng nhận, tổ chức và Fairrade CertifiedTM; và đầu tư vào các dự án phát triển mang tính xã hội ở các nước sản xuất café. Starbucks là nhà bán lẻ hàng đầu, với thương hiệu và máy rang café đặc biệt với hơn 11.000 đại lý bán lẻ trên toàn thế giới. Hãng đã cam kết sẽ đưa ra loại café và “Starbucks Experience” chất lượng cao nhất trong khi vẫn kiểm soát công việc kinh doanh theo con đường cung cấp những lợi nhuận về mặt kinh tế, môi trường và xã hội cho cộng đồng tại những nơi mà nó tiến hành hoạt động kinh doanh. Starbucks thâm nhập vào thị trường Anh quốc vào năm 1998 và bây giờ nó đã tuyển dụng được hơn 7000 đối tác với xấp xỉ khoảng 490 chủ cơ sở. Hãng Starbucks Coffee Company được thành lập và hoạt động được mô tả là “Một con đường mới của hoạt động kinh doanh”. Nhiệm vụ của Starbucks là thiết lập cho mình một mạng lưới cung cấp café nguyên chất hàng đầu thế giới trong khi vẫn duy trì những nét đặc trưng riêng biệt của mình. Trong khi vừa là nhà cung cấp đạt tiêu chuẩn cao nhất trên thế giới về nhãn hiệu café tươi nóng, Starbucks nhận ra rằng lợi nhuận thu được là rất cần thiết cho thành công của nó trong tương lai. Starbucks sẽ hướng tới việc đóng góp một phần tích cực vào cộng đồng giao tiếp mang tính địa phương và mang tính toàn cầu thông qua hoạt động của nó với một số lượng đối tác có sự thành thạo tinh thông trong những lĩnh vực như phát triển xã hội, lao động và văn hoá đọc. Ví dụ như ở UK, hãng Starbucks đã hoạt động trong mối quan hệ gần gũi với NXB sự thật quốc gia (NLT) 6 năm trước đây để phát triển sản phẩm All Books for Children (ABC) nhằm giới thiệu cho trẻ trước tuổi đến trường và các bậc cha mẹ về lợi ích của việc biết đọc. Và từ tháng 1-2001 ABC đã được 7,445 trẻ em và các bậc phụ huynh, những người luôn chọn những cuốn sách miễn phí trong hơn 22 300 đầu sách, đón đọc và mua về nhà. Có được thành công từ ABC cuốn The Starbucks Christmas Bookdrive được thiết kế để khuyến khích khách hàng và các đối tác kinh doanh của Starbucks quyên góp sách cho học sinh tiểu học. | Tổng số 93 000 quyển sách đã được quyên góp từ khi Bookdrive ra đời. Một thành tố quan trọng thứ ba trong chương trình khuyến khích giao tiếp của Starbucks là sử dụng những kỹ năng và kinh nghiệm của các đối tác của Starbucks để cung cấp những lời khuyên và huấn luyện cho trẻ từ độ tuổi 14-15 tuổi cách làm việc bao gồm những kỹ năng và những lối ứng xử mà các ông chủ tương lai đòi hỏi. KHUYẾN THỊ Starbucks vẫn tiếp tục cách tân trong khi vẫn kiên định với nhiệm vụ và những nguyên tắc hướng dẫn hoạt động của mình. Hãng đã đưa ra những đổi mới về đồ ăn thức uống đựơc ưa thích như là Gingerbread Latte at Chrismas, Frappuccino TM Light Blended Beverages, sản phẩm từ thực vật có gluten, bột mì và panini như là bánh nướng xốp. Starbucks đã hình thành nên cụm từ “vị trí thứ ba”- một môi trường thư giãn giữa gia dình và công việc, nơi mà bạn có thể thưởng thức một tách café trên một chiếc sofa thoải mái. Cộng tác với T-Mobile để cung cấp sản phẩm Wi-fi hotspot và tạp chí Times trong các cửa hàng. Càng ngày Starbucks càng có những đổi mới trong lĩnh vực giải trí với việc giới thiệu sản phẩm Hear Music CDs cho phép khách hàng khám phá cảm nhận và thưởng thức tất cả những thể loại âm nhạc trong cửa hàng. THỊ TRƯỜNG |

Thị trường café thế giới về phương diện lịch sử rất nhạy cảm với giá cả lên xuống thất thường mà nó đã kết nối được với thị trường cung cầu thế giới. Trong năm 2001 giá café tươi xuống rất thấp trong vòng 30 năm trở lại và đã có những ảnh hưởng bất lợi cho những người nông dân trồng cafe. Bất chấp sự biến động của thị trường, Starbucks vẫn luôn cam kết bán café chất lượng cao với một hình thức trách nhiệm mang tính xã hội và nó đã quyết định sẽ thực hiện nhiều hơn thế. Starbucks đã lựa chọn một phương pháp thích hợp dựa trên sáu nguyên tắc nền tảng cơ bản được gọi là Coffe and Farmer Equity (C.A.F.E) Practise. Những nguyên tắc này bao gồm: trả giá cao để giúp đỡ nông dân tạo ra lợi nhuận và hỗ trợ cho gia đình họ; việc mua các loại café có sự bảo tồn, chứng nhận, tổ chức và Fairrade CertifiedTM; và đầu tư vào các dự án phát triển mang tính xã hội ở các nước sản xuất café. Năm 2005, ở Anh thương hiệu tiếp tục mở rộng một cách nhanh chóng với gần 9 000 cửa hàng café đạt 1,1 tỉ $ doanh thu. Thị trường đã trông đợi vào sự phát triển bởi một sự kết nối tỉ lệ hàng năm là 8.9% về mặt số lượng các đại lí trong hơn ba năm tới để đạt tới doanh thu là 1.4 tỉ $. Giá café thương hiệu được tính tới hơn 30% thị trường và Starbucks dẫn đầu với xấp xỉ khoảng 24% cổ phiếu trên thị trường (theo nguồn Allegra Strategies, Cafe). [tag] NHỮNG THÀNH TỰU GẦN ĐÂY Năm 2005 trung tâm môi trường thế giới đã trao cho công ty café Starbucks huy chương vàng hàng năm của thế kỉ 21 về thành tựu hợp tác quốc tế trong dự án phát triển đã được chứng minh. Giải thưởng được trao cho Starbucks về thành tựu C.A.F. E Practise. Trong năm 2005 và 2006 hoạt động của Starbucks trong cộng đồng ở nước Anh đã được công nhận bới tổ chức Bussiness in the Community với một giải thưởng Big Tick cho sự xuất sắc trong CSR. Tiếp theo đó Starbucks vẫn tiếp tục trung thành với những giá trị của mình trong khi vẫn đổi mới và vượt quá cả sự mong đợi của khách hàng. Mục đích của nó là nắm lấy thị trường địa phương và thị trường toàn cầu, mang đến cảm hứng mỗi ngày với một tách caffe vĩ đại. 1971
Starbucks được thành lập ở Seattle bởi ba người bạn cùng học ở trường đại học SanFransico vào những năm 1960. 1982
Cửa hàng đầu tiên đạt được thành công và có được sự chú ýcủa Howard Schultz người mà sẽ tham gia vào công ty sau này. 1987 Với sự hậu thuẫn của các nhà đầu tư địa phương Schultz đã mua Starbucks |
1991
“Bean Stock” được giới thiệu - một sự phối hợp lựa chọn nguồn cung cấp cho tất cả những người làm đối tác 1998
Starbucks thâm nhập vào thị trường Anh quốc thông qua việc giành được 60 cửa hàng từ công ty cà phê Seattle 2000
Hiện nay Starbucks Christmas Bookdrive hàng năm được xuất bản bởi nhà xuất bản sự thật quốc gia. 2003
The Starbucks Coffee Master Programme được thành lập. 2004 The Coffeehouse Challenge với the Royal Society of Arts được thành lập 2005
Starbucks đã quyên góp được 50,000 quyển sách thông qua Bookdrive 2006
Liên tiếp 2 năm Starbucks đã được nhận giải thưởng Big Tick bởi hiệp hội Business in the Community về sự xuất sắc trong CSR

NHỮNG ĐIỀU CÓ THỂ BẠN CHƯA BIẾT VỀ THƯƠNG HIỆU STARBUCKS | · Starbucks chỉ mua những hạt cafe của các nước Arập và chỉ chọn 10% trong số đó những hạt café được trồng ở độ cao 900 đến 1500 m. · Starbucks được chứng nhận đã bán Fairtrade Certified coffee ở 23 nước - nhiều hơn bất kì hãng nào trên thế giới. · Starbucks bán khoảng 20 loại café khác nhau trong cửa hàng hằng ngày và khách hàng có thể nhận café thông qua các cửa hàng. ° |

Similar Documents

Premium Essay

Resources and Competences

...what extent Starbucks is able to use it resources and competences wisely and which capabilities are creating a competitive advantage. First, a model is made to select the resources from the competences and the unique resources and threshold resources. From these the core competences can be created and implemented in the VRIN-model. Resources Competences Treshold capabilities Treshold resources ● Financial resources ● Suppliers ● Stores ● Equipment ● Staff ● Worldwide stores in more than 60 countries Treshold competences ● Always say yes to the customer ● Personal service Capabilities for competitive advantages Unique resources Tangible ● Coffee ● Located world wide ● Technological resources ( Starbucks app) Intangible ● Brand/Trademark ● Atmosphere ● Word to mouth(online) ● Schooling program ● Loyalty program Core competencies ● Most recognized brand in the coffeehouse industry ● Exceptional customer services achieved through employee motivation ● Focus on high product quality ● Customer loyalty ● High CSR image Table *.* Resources, capabilities and competences of Starbucks With the table above, the core competences can be put in the VRIN-model to see if they have a competitive advantage. Resources and capabilities of Starbucks Is it valuable? Is it rare? Is it hard/costly to imitate? Is it non-substitutable? Competitive implication Located World Wide ( stores in 60 countries) yes yes yes yes Competitive advantage ...

Words: 606 - Pages: 3

Premium Essay

Starbucks Analysis

...Starbucks Coffee Company Background The first Starbucks opened in 1971 in Seattle's Historic Pike Place Market and it was belong to English teacher Jerry Baldwin, history teacher Zew Siegl, and writer Gordon Bowker. At first, they sell high-quality coffee beans and equipment. In 1982, the founders were joined by an entrepreneur named Howard Shultz who functioned as the firm's Director of Retail Operations and Marketing (Facts about Starbucks Coffee Company). While Howard Shultz on a trip to Italy, he found Italian "coffee culture". He believed the "coffee culture" could be reproduction in United States. In 1987, Shultz bring Italian “coffee culture” to United States. Starbucks was sweeping the whole of world. Until today, Starbucks have 17003 retail stores in 55 countries (Starbucks story as of October 2, 2011). Starbucks always give us promise- to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time (Facts about Starbucks Coffee Company). Starbucks coffee shops sales coffee; handcrafted beverages; merchandise; fresh food; consumer products; and brand portfolio ((Facts about Starbucks Coffee Company). Outline In the following instructing,it will talk about Starbucks quantity. Firstly, use the product life cycle to identify the product have the curve of the lifetime. Use product development, introduction, growth, maturity, and decline this five stage to make sure what stage the product in. Make sure have new product could replace it. Secondly...

Words: 2278 - Pages: 10

Premium Essay

Starbucks Analysis

...Courtney Parker c.energizerbunny@gmail.com Courtney Parker c.energizerbunny@gmail.com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must...

Words: 6572 - Pages: 27

Premium Essay

Case Study on Starbucks

...Summary about the Starbucks Company ➢ In 2006, Starbucks made an outstanding financial performance which was an increase of sale from $697 million to $7.8 billion and ROIC was 25.5%. ➢ Thirty years ago, it was a single store and now it has more than 12,000 retail stores. ➢ After returning of the Howard Schultz as a CEO of the Starbucks adopted a new business model. ➢ The CEO felt that people lacked a Third Place where they could pass leisure with friends along with a relaxed, informal, and comfortable atmosphere. ➢ To make distinctive competencies he took differentiation strategy including service oriented mission & acquiring vision. ➢ The company continued to devote considerable attention to the design of its store and also focused on the superior customer service in stores. ➢ Employees were hired & Attendance on employee training program was compulsory in addition to progressive compensation policies, stock option. ➢ Starbucks planned to own all of the franchised stored and captured the premium places of Country so that the competitors could not imitate their strategy. ➢ Expecting 50% of all new stores to be outside, Its long term goal is to have 40,000 stores worldwide. SWOT Analysis: Strengths: • Starbucks has its stores in 40 countries around the world. • Starbucks were very much innovative • Starbucks provide superior customer service...

Words: 788 - Pages: 4

Premium Essay

Ashford Week 4

...SWOT Analysis: Starbucks Coffee Company Ravineel Chand MGT 450: Strategic Planning for Organizations (BII1607A) Professor John Bruning February 27th, 2016 Introduction SWOT Analysis is a useful technique utilized by organizations to understand the strength and weaknesses of the organization. Furthermore, it is also utilized to understand the opportunities which may be open to the organization and the potential threats that it may face. “Once a company has a firm understanding of where it stands financially, the next part of the internal assessment is conducting a SWOT analysis, which stands for a company’s strengths, weaknesses, opportunities, and threats.” (Abraham. S.C, 2012) Using a SWOT analysis allows organizations to carefully pinpoint where they stand against competition, where their weaknesses and strengths lie, and how to gain more opportunities within their respective markets. The purpose of this paper is to conduct a SWOT analysis of the Starbucks (SBUX) corporation This paper will also describe the history of the organization, its products and major competitors. History Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries...

Words: 1493 - Pages: 6

Premium Essay

Costa Coffee vs Starbucks -Marketing

...create additional value for their coffee store clients by using elements of Starbucks marketing strategy? Contents Introduction 3 Coffee Market in the UK 3 Market Leading Coffee Shops in the UK 4 Costa Coffee 4 Identifying competition 6 Starbucks 6 Conclusions 8 Recommendations 9 References 11 Appendix 1 13 Appendix 2 14 Appendix 3 15 Introduction Competitive marketing strategy is described by Kotler and Armstrong (2012) as a strategy which positions company against competition giving it the strongest possible strategic advantage. I have chosen Costa Coffee as it currently is the market leader in terms of most coffee retail outlets in the United Kingdom as demonstrated on appendix 1. Kotler and Armstrong (2012) point out that competitor analysis includes assessing competitions objectives, strategies, strengths and weaknesses, reaction patterns and selecting which competitors to attack or avoid. For he purposes of this assignment, I have identified competition based on the market share and customer view. Competitive marketing strategy is selected on the basis of it creating further value for the customer. Blythe (2009) concludes that competitive advantage is the outcome of effective strategy whereby the company is offering...

Words: 2664 - Pages: 11

Premium Essay

Strategic Planning

...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 ...

Words: 5074 - Pages: 21

Premium Essay

Starbucks Strategy Analysis

...24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks some new and relevant elements for the future strategic direction of the...

Words: 8423 - Pages: 34

Premium Essay

Starbuck's Cafe Strategic Management

...Strategic Management Starbuck’s Coffee Strategic Management Executive Summary: Starbucks could be an international company operative within the low retail market since 1972. The corporate, that has positioned itself as a merchandiser of premium low merchandise, has greatly swollen its market position and presence within the past 20 years. Despite a positive market outlook, Starbucks is in would like of strategic content because the company faces to not be underestimated challenges within the short- to medium-term. Those challenges emanate from established competitors like some others fast food companies internationally defy Starbuck’s market leadership position by driving aggressive low-pricing methods in established and rising markets. Moreover, new trends within the low business have spread out new segments with high growth potentials. Starbucks remains unsure however tackle new segments and what impact trends may wear its product portfolio. This report is supposed to be a strategic scout that aims at illuminating totally different strategic alternatives within the lightweight of the numerous opportunities and threats that lie ahead. The report will provide recommendation on a way to utilize internal strengths to maximize opportunities and the way to attenuate weaknesses to avoid threats. (Lee, Ristic and Franke, 2014) Question No. 1 Which of porter's competitive strategies is Starbucks using? Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation"...

Words: 1559 - Pages: 7

Premium Essay

Starbucks

...STARBUCKS IS COMING TO INDIA INTRODUCTION As we all may know, behind any successful achievement, there is a long story of withstanding hardship and endeavouring persistently behind any success. The Starbucks’ case of successfully bringing the brand into the Indian market is one example. This paper is to study the (3) reasons why Starbucks International decided to expand its market scale internationally and to figure out the initial criteria required for Indian Market. This is also to analyse appropriate circumstances at that time for Starbucks to be able to earn its foothold there provides us with valuable business guidance. Besides, this study by pointing out key factors which lead to Starbucks’ success in launching its brand in India demonstrates how Starbucks applied sustained competitive advantage and dealt with obstacles during the launching period, which created significant courage for Starbucks International to move next steps to fulfil its ambition for international expansion. COMPANY’S OVERVIEW Founded in 1971 in Seattle, Starbucks was started as a store to roast and sell coffee bean by three partners. Its name and logo were named after the famous novel Moby Dick. In 1987, Howard Schultz who is currently the company’s CEO acquired Starbucks and single-handedly converted it into a national, publicly owned company. Having more than 11,000 stores in 36 countries worldwide and over 10,000 employees in 2006 (Case Study), the company grew to about 17,000 stores (starbucks...

Words: 2717 - Pages: 11

Premium Essay

Environmental Analysis

...benchmark economic conditions that contribute to improve profitability, business growth and market size. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Financial release, 2007). Starbucks Corporation has established by purchasing high quality coffee beans and sells the customers along with a variety a specialty drinks and food that has met with an ever-increasing amount of success. Starbucks have succeeded several economic factors as well as price elasticity of demand. Price elasticity of demand can be determined by the percentage change in the quantity demanded with the percentage change in price. They should consider household income that people are willing to spend more on food and beverages when household income increases. Starbucks innovation in joint ventures has opened new markets and opportunities increasing product use among different demographics. Starbucks has proven to be highly innovative in business culture that offers prepaid cards, priced from $5 to $500. Joint ventures with Pepsi Company, Dreyer's Grand Ice Cream Inc and inspiring entertainment with the launch of "Hear Music" have developed Starbucks with great success. Starbucks has shown their values, leveraging market power, resources, and capabilities to achieve returns higher than...

Words: 3030 - Pages: 13

Premium Essay

Argosy M4

...This paper will discuss the strategy utilized by Starbucks, analyzing the market position, competitive advantage, external environment and will summarize the Porter’s Five Forces. Strategic issues faced by Starbucks will be discussed as well. Howard Schultz bought a Seattle coffee company in 1987 and converted the six coffee stores into an international brand today. Starbucks currently, a publicly owned company with more than 25, 000 employees and 5,689 stores in 28 countries. He is the man behind, and CEO of, Starbucks. Starbucks began as a small company who provided coffee to fine restaurants and espresso bars. It has since, over the last twenty-one years, become the largest retail coffee company in the world. Starbucks has seen its company grow from having a mere 17 stores in 1987 to having currently 5, 688 locations globally. This amazing expansion can be attributed to Howard Schultz, who bought the Starbucks name fifteen years ago. A large reason Starbucks has done so well for almost two decades can be attributed to changes of the coffee image among consumers. The recent popularity of specialty coffee is due to four new consumer trends: 1) the adoption of a healthier lifestyle, which led people to replace alcohol with coffee; 2) coffee bars had become a place where people could meet, and talk; 3) people developed a liking of affordable luxuries, and specialty coffee became the beverage to drink; and 4) consumers had become more aware about coffee, as its popularity...

Words: 2451 - Pages: 10

Premium Essay

Starbucks‘S Success

...Analysis ----The Secret of Starbucks’ Success in China The current event article I found tells about the successful marketing strategies that the Starbucks Corporation takes to enter into the market of China, and simultaneously the problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premium coffees with a superior level of customer service and at a premium price, around the globe. Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object (Isidro, 2004). Based on the stateside success, Starbucks begins to expand its international market. Additionally, the current coffee consumption of China is much lower than the average level in the world, therefore a huge commercial space existing there. Starbucks realizes this great development potential, hence it hopes to make China becomes the largest international market except U.S. in the future. However, this is a big challenge for Starbucks Corporation, and therefore the article analyzes the SWOT and 4Ps strategies of Starbucks by taking this entering into China’s market as an example. Besides, the article also summarizes the major problems that Starbucks may meet during the market...

Words: 1175 - Pages: 5

Premium Essay

Starbucks Case Analysis

...Starbucks: Case Analysis | An in depth analysis of The Starbucks Corporation | Prestige Worldwide | Executive Summary Starbucks Corporation has been brewing and selling specialty coffee, espresso based drinks, and other novelty items since there conception in 1971. CEO and President, Howard Shultz, has been leading and driving Starbucks to be the world’s best coffeehouse since he joined the company in 1982 as a director of retail and marketing. After becoming CEO in 1987, Shultz has driven Starbucks to be a tycoon in the specialty coffee industry with a large competitive advantage. Some of the problems that face Starbucks are their limited product line, highly priced menu, and speed of service. Also Starbucks had expanded globally an in the United States over the past years but has been forced to close down a large number of stores due to the lack of demand for specialty coffee in certain places. Companies like Dunkin Donuts and McDonalds also offer a larger variety of food at a lot cheaper of a price compared to Starbucks. All of these factors together can be harmful to the future of Starbucks if nothing is done about it. Starbucks has time and the power to take this information and implement successful strategies to reverse these paths they are heading down. First by implementing a value menu Starbucks can gain back the people that do not want to spend too much money on their morning cup of coffee. McDonalds stated “4 dollars for a cup of coffee is dumb” and...

Words: 4186 - Pages: 17

Premium Essay

Week 2

...Starbucks WEEK 2 Starbucks New Market Entrance Starbucks strategic goal is to increase market share of the non-coffee drinker; they have begun by introducing an extension of a product line targeted to this segment. To ensure market growth, Starbucks has repositioned one of its current products, the Frappuccino line, this product has been extended to include 3 new flavors; Double Chocolate Chip Crème, Vanilla Bean Crème, and Strawberries & Crème, introduced throughout the summer months. Faced with the challenge of entering a new competitive market Starbucks must compete to retain brand recognition of its primary products, yet increase awareness of its new product line. Situation Analysis Company Starbucks is the leading retailer for roaster and brand specialty coffee in the world (See Figure 1). It has over 7,500 stores, which are located in the United States, Canada, Europe, Asia and the Middle East . Besides high quality coffee drinks, Starbucks sells bottled coffee drinks, such as Frappuccino® and Starbucks DoubleShot™. Starbucks revenue is growing by 20% a year and is opening approximately three stores every day. Starbucks is capable of managing its successful operations by having steady market growth. It achieved this by financing through their cash flow instead of franchising, selling stock or increasing their financial leverage . Its strategy to success is “blanket an area completely.” This approach is to “cuts down on delivery and management costs, shortens customer...

Words: 1849 - Pages: 8