Starbucks Business Analysis

1698 words - 7 pages

Starbucks Business Analysis

.

Abstract
Starbucks went from just a hole in a wall shop to a world known company and culture. One would wonder how it occurred, if it was over night, and most importantly the business aspect sustaining a successful international business. At the end of the day Starbucks Co. is well known for their market in gourmet coffee. On the other hand, the market has plenty of competitors in coffee, but what makes Starbucks the number one specialty coffee retailer? The answer lies in every compartment that makes Starbucks Co. what it is. From the 87,000 possible drink combinations, to the provided healthcare insurance offered to employees including part-time. ...view middle of the document...

d.). By 1987, Starbucks began selling bottled Frappuccino coffee drink through North American Coffee Partnership (Pepsi-Cola North America). Starbucks introduced the first mail order catalog in 1988, enabling mail ordering of their coffee in all 50 states. Tazo, a tea company based in Portland Oregon was welcomed into the Starbucks family in 1988.

Expansion:
Expansion for Starbucks was the star in creating a brand and a culture that many now find hard to compete with. In 1996 the first Starbucks outside of North America opened up in Tokyo, Japan. By 2002 Mexico City was the first store in Latin America (Starbucks Corporation, n.d.). The expansion for Starbucks grew to around 65 countries which makes it a worldly competitive beast.
Competition:
Starbucks like any other business has competitors in the market. Starbucks main competitors include Caribou Coffee Company, Costa Coffee, Dunkin’ Brands Group, Inc., Green Mountain Coffee Roasters, McDonald’s Corporation, Nestle S.A. and many other restaurant chain and retail companies (Starbucks SWOT analysis 2015, 2015). Starbucks has plenty of competitors, but what advantages does Starbuck have that sets them apart from the competition? A huge advantage is Starbucks taking advantage of technology. When it comes to the mobile world Starbucks dominates competitors. According to the Motley Fool, “More than 13 million consumers in the U.S. now use Starbucks mobile apps. As a result, the coffee retailer now generates over 7 million mobile transactions in its stores each week” (Walsh, 2015). The app is an advantage for customers who wants faster service, with shorter lines. Starbucks also unlike its competitiors has its own software mobile app that is exclusive not only to consumers, but also to employees. Employees can easily get access to on the job information such as their work schedules. The Starbucks rewards programs app is Starbucks main tool to stay competitive.” Starbucks is driving consumer loyalty with the ongoing success of its My Starbucks Rewards, or MSR, initiative. In fact, the java chain added nearly 900,000 new MSR members in its latest quarter -- Starbucks MSR membership now tops 9 million, up 23% over last year (Walsh, 2015)”. Starbucks rewards program is the competitive advantage to grow profit, and maintain long-term customer loyalty to secure the future of the company. Starbucks execution on focusing on the original products including good coffee, quality service and a nice environment (Starbucks and McDonalds winning strategy, 2013). Some other attributes include, the leadership of Company founder Howard Schultz, and the expansion to China. “…This means that there is a strong demand for Starbucks as a “third place.” Last year, Starbucks opened 500 new stores in China, bringing the total to 1500” (Starbucks and McDonalds winning strategy, 2013).
SWOT ANALYSIS

Strengths:
Starbucks is a brand name and recognized internationally with companies value at $6.9 billion. Being...

Other Papers Like Starbucks Business Analysis

Starbucks Essay

5903 words - 24 pages Starbucks Corporation: An Extensive Analysis By: Muhammad Almuhanna Andre Johnson-Payne Jessica Pope Natalie Schiefer Jordan Sprague Management 429 – Dr. Yu Liu April 16, 2012 Table of Contents Brief Introduction & Key Issues 3-4 External Analysis 4-5 Internal Analysis 5-7 Analysis of Business Level Strategy 7-8 Analysis of Corporate Level Strategy 9-11 Recommendations 11 References 12 Appendix 13 Brief

Starbucks Essay

793 words - 4 pages found that it was generating an enormous volume of repeat business. Today, the average customer comes into a Starbucks store around twenty times a month. The customers themselves are a fairly well heeled group – their average income is about $80,000. As the company grew, it started to develop a very sophisticated location strategy. Detailed demographic analysis was used to identify the best locations for STARBUCKS STORES. The company expanded

Starbucks

2833 words - 12 pages • 1. Starbucks Coffee CompanyExpanding into IndiaBRENDAN CRONININSIDE:This document contains an environmental analysis of Starbucks Coffee Company,strategic decision options, an action plan to implement those strategic decisions anda recommendation on Starbucks expanding into India. • 2. 2Current Situation: Starbucks is a provider of high-end coffee products and more importantly, arelaxed experience. Starbucks as it is known today was purchased

Starbucks - 379 words

379 words - 2 pages SWOT Analysis Starbucks Strengths. • Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year. • It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries. • Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company

Starbucks - 3613 words

3613 words - 15 pages STARBUCKS Student ID: 17834560 Subject: 2014-BUS5MMS(BU-2) - MGT AND MKT FOR SVC Submitted to: Dr. Navin Veerapa Submitted by: Ibrahim Gurgaij Date: 11, Sep 2014 Table of Contents ABSTRACT:- 4 I- INTRODUCTION OF THE COMPANY:- 4 Financial performance 5 II-MISSION STATEMENTS:- 5 III-SWOT ANALYSIS:- 6 INTERNAL ANALYSIS:- 7 Strengths 7 Experience:- 8 Brand

Starbucks - 2926 words

2926 words - 12 pages Starbucks will focus on how internal as well as external factors influence this company. Internal factors will be highlighted by the McKinsey-7S-Model. External analysis will conclude Porter’s Five Forces model to outline the threats Starbucks faces in its industry. The SWOT Analysis will show Strengths, Weaknesses, Opportunities, and Threats to Starbucks business model. Furthermore the PEST Analysis will give explanation how external factors

Starbucks - 4786 words

4786 words - 20 pages of time. The wages of workers were proposed to increase by three-fold which would seriously impact the costing structure of its business. Findings and analysis The problems faced by Starbucks in Europe were predominantly on account of the following strategic issues: The need for localization based on the nature of the product – Café is a 300 year old concept in Europe. The rise of Starbucks coincided with increase in adoption of

Starbucks - 851 words

851 words - 4 pages beverages in markets outside of North America. Partnered with Unilever to manufacture, market and distribute Starbucks branded ice cream. B. Industry Environment Analysis * What are the main business and economic characteristics of the relevant industry? “To build a company with soul” was that the company would never stop pursuing the perfect cup of coffee by buying the best beans and roasting them to perfection without polluting them by

Starbucks - 1987 words

1987 words - 8 pages instant coffee business. Through this payment pelan, customers can make purchases at the stores through their Smartphone but before that, they have to download the Starbucks app first from the stores in order to use this service. Vision statement “ Starbucks is committed to ethically sourcing and roasting the highest quality Arabica coffee in the world” Mission statement “ To inspire and nurture the human spirit- one person, one cup and one

Starbucks - 2907 words

2907 words - 12 pages visits, and had a different perception of Starbucks. Concern had been expressed that Starbucks had lost the connection between satisfying our customers and growing the business, Starbucks wanted to serve the customer within 3 minute time window. Is that going to add customer loyalty? Starbucks wanted more handcrafted time consuming choices for consumers. Is that going to add to customer loyalty Starbucks sees themselves as selling innovative

Starbucks - 2943 words

2943 words - 12 pages balance between profitability and a social conscience”. Through this strategy, Schultz intents to contributes positively to the communities in which Starbuck has stores and conducts its business in a way that earn the trust and respect of customers, partners, shareholders … 6. Preform a SWOT analysis for Starbucks Strengths | Weaknesses | Opportunities | Threats | Partner Recognition Program – 18 different awards and programs | Donald’s

Related Essays

Starbucks Essay 1180 Words

1180 words - 5 pages strategic issues analysis will breakdown its strategy and provide positive and negative feedback on the company as a whole. Starbucks’ Situational Analysis: Starbucks has done many things to help its company grow and expand into the transnational business that it is today. Its high quality differentiation strategy allows it to focus on pleasing the customer in every way possible. Its introduction of wireless internet and the Starbucks

Starbucks Essay 1288 Words

1288 words - 6 pages Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. The following six guiding principles will help us measure the appropriateness of our decisions: - Provide a great work environment and treat each other with respect and dignity. - Embrace diversity as an essential component in the way we do business. - Apply the highest standards of excellence to the purchasing

Starbucks Essay 1024 Words

1024 words - 5 pages 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

Starbucks Essay 2568 Words

2568 words - 11 pages community to share in the coffee drinking experience, and variety of choices. The also value ethics and good business practices and are a leader being voted one of 2010’s most ethical businesses by Ethisphere magazine for the 4th year running. (“Starbucks”) Starbucks is facing its own struggles however as it saw sales start slipping before other companies did in the recent recession. According to Melissa Allison in her article Starbucks has a new