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Starbucks Case Study

1038 words - 5 pages

CJ Bosch
Marketing 100 MWF 10 a.m.
10-30-13

Starbucks Case Study

Initial Study
Starbucks Corporation, the largest coffeehouse company in the world, with 19,435 stores in 58 countries, including 12,781 in the United States, 1,241 in Canada, 1,062 in Japan, 976 in Great Britain and 645 in China (starbucks website), started it's journey as a local coffee bean roaster and retailer of whole bean and ground coffee, tea, and spices in Seattle, Washington. The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker (Starbucks website). From 1971, a single store in Seattle’s Pike ...view middle of the document...

Thus after facing very tough competitions, the Starbucks used a variety of strategies to extend this brand – like introduction of Frappuccino flavored ice creams, introductions of new blends of Frappuccino targeted only for certain specific regions of the world. The chain also looked for options to implement “however-you-want-it-Frappuccino” customizations at a quality price, the target market of these are 18 to 24 year old females who looks for low calorie product. In order to implement these customizations the company must deal with problems such as longer production time, complicated employee training, customer service time managements etc.
When looking at the important factors that Starbucks management must consider when trying to find a solution to this problem entail Strengths, Weaknesses, opportunities, and threats. Each one of these must be reviewed individually.

Strengths
With 19,435 stores in 58 countries Starbucks Corporation earns a great amount of money each year – close to $11 billion. The company has a huge number of regular followers and they will likely to follow new offerings by the company.
Weaknesses
Issues like handling long lines of customers, longer times to prepare and serve snacks and drinks, complicated employee trainings exposes that the company has some operating policy problems which are very much expected from a large coffee chain like Starbucks. The company can overcome these issues.
Opportunities
The company offers a wide variety of products suited to customers of specific regions of the world, such as Saseme Frappuccino in China, Red Bean Frappuccino in other Asian countries. Furthermore the product depth and width of the company is very satisfactory. The company seems to be very much dedicated to always enhance their products.
Threats
Dunkin’ Donuts, McDonald’s etc rival companies along with many small companies around the world are offering newer services nearly every week. Besides these companies retail chains like Walmart, Kmart, Targets often have their own coffee corners which also provides cheaper alternatives to Frappuccino. With a every single bad product lunch or promotion the Starbucks may lose some if not all potential or existing customer.
When looking...

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