Business Analysis: Case Analysis Of Starbucks

INTRODUCTION

The following is a case analysis of Starbucks, which was founded in Seattle, Washington in 1971. Starbucks is a universal brand that is committed to doing business responsibly and conducting themselves in ways that they earn the trust and respect of our customers and partners. It is committed to enhancing and providing an excellent work environment for its customers as well as employees. Starbucks uses minimal advertising and has grown on word of mouth and brand recognition. This case analysis will identify the micro and macro environment that Starbucks has encountered in entering global markets and also a brief description regarding the profitability increase over the years in Japan.

COMPANY OVERVIEW

Starbucks was formed in

There are two kinds of external marketing environments; micro and macro. These environments’ factors are beyond the control of marketers but they still influence the decisions made when creating a strategic marketing strategy.

Starbucks is facing its particular economic struggles as its sales began slipping before any other companies did in the recent recession. Therefore, they came up with a new growth strategy which basically states, more revenue with lower costs. Due to the recession, it had to close 900 stores and eliminate 30,000 jobs. Starbucks new strategy is to refocus on some of the areas that decrease risk and upfront investment. This includes expanding foreign stores, with aid of partnerships that share risk and costs, selling instant coffee and other products in retail and convenience stores, and reinvigorating the Seattle’s Best Brand coffee. MICRO

Location is a major factor as it should be in an easy access for both customers and staffs. They have to find area where local population have high attitude to work. So their recruitment will be easy, training will be effective and staff turnover will be low.

Technological

Starbucks is well aware to extend and improve its Internet facilities and also tools to target customers, analyse data, and deliver new features to the market in the shortest time. The technology like as coffee making machines and the computers system development that Starbucks use to operate their till registers will enable their staff to work more quickly and efficiently.

Legal

Starbucks have to ensure they don 't violate laws e.g., religious laws. Also they have to be attentive on the tariffs have to paid for import / export goods.

PROFITABILITY IN JAPAN

The Seattle-based coffee company, Starbucks Corporation, moved a step forward in its plan for international growth, as the company decided to take full ownership of Starbucks Coffee Japan Ltd. (Starbucks Japan).