The Industry demand has changed due to a shift in consumers’ attitudes towards healthier products. This placed Starbucks’ coffee culture at risk and threatened the company’s future. Starbucks has tailored their menu to include more organic and healthy product mixes, venturing into tea, bread and fresh juice products (Geereddy, n.d). Starbucks’ cornerstone product differentiation strategies and Human Resource Management are the main impacts to strategy formulation. Starbucks’ is a premium valued brand; costly to imitate.
Starbucks is an American company that was established in 1971 in Seattle, WA. Starbucks is the leading roaster, maker and retailer of special coffee around world. Starbucks employed more than 182,000 employees across 19,767 branches operated & licensed stores in 62 countries. They do the purchasing and roasting of high-quality coffees that they sell, along with handcrafted coffee, tea and other beverages and a variety of fresh food items, through company-operated stores. The company also sells different types of coffee and tea products and licenses their trademarks through other channels such as licensed stores, grocery and national foodservice accounts.
The increase in average temperatures and the turning of rainy seasons destroy large parts of farmers' yields and impede the overall yield of coffee. • Competitors The main potential challenges facing Starbucks are increasing competition from other retailers with similar concept of products. These competitors are able to stand out in the markets to generate customers. The main competitors are Dunkin Donuts, McDonald’s and Costa. It is essential for Starbucks to know their rivals and what they are currently doing to gain completive edge over them.
Executive Summary Starbucks is an American coffee chain that began operating on the 31st of March 1971. Since then they have grown and expanded to over 24 000 outlets globally. Starbucks has a extensive Corporate Social Responsibility (CSR) programme. They are committed to Ethically and Sustainably 1Sourcing their Tea, Coffee and Manufactured Goods. This means that they hope to reach their goal of 100% ethically sourced cocoa, 65% ethically sourced tea and manufactured products by 2020.
“Starbucks Global Take-Over of China” Starbucks changed the concept of drinking coffee; no longer is coffee just a product it is a lifestyle. Through making coffee drinking an experience Starbucks was able to move a domestic product from a simple coffee shop in Seattle Washington to a renowned product globally. Starbucks has come a long way since its first beginnings in 1971. Today, it’s the world’s largest coffee retailer, with over 19,000 locations in more than 60 countries. What sets Starbucks a part within in the company is that the staff, which are known as partners, are responsible for the sale of over 2 billion cups of coffee every year and create what is known as, “the Starbucks Experience”(Krikorian).
The aggressive growth rate of stores across the world had a ripple effect which led to Starbucks undergoing multiple changes: a. Globalization – The number of retail stores were 5000 and counting. It also started experimenting with new retail formats such as ‘drive-throughs’. Around 15% of its revenue came from non-company operated retails channels, known as ‘Specialty Operations’ which included international licensed stores, grocery stores, warehouse clubs and online mail-order sales. The goal was simple – reach customers where they work, travel, shop and
1. Introduction Background Starbucks is the largest coffeehouse firm in the world, founded in 1971 as a Seattle coffee bean roaster and retailer. It expanded with more than 21,000 stores in 65 countries and territories between 1987 and 2007, which is equivalent to open an average of two stores per day. It is an American coffee firm and coffeehouse chain, with its first store established in Seattle, Washington. Starbucks offers beverages, whole bean coffee, micro-ground instant coffee, full-leaf teas, pastries and snacks, pre-packaged food like salads, and utensils such as reusable water bottle.
Starbucks Coffee Company, founded in 1971, has grown to an international brand. As the world’s biggest coffeehouse company, Starbucks continues to lead the industry in sustainable business and innovation. Such success is attributed to the firm’s ability to address the external PESTEL/PESTLE factors. The PESTEL/PESTLE analysis framework indicates the most significant influences on Starbucks based on characteristics of the remote or macro-environment. Despite its current industry leadership, Starbucks must continue monitoring its remote or macro-environment.
Product: Starbucks mainly specialized in coffees and but also sells other beverages such as premium quality teas, ice-blended beverages, pastries and some of their merchandise like for instant tumbler and mugs. They still continued to innovate more of their products to cater to attract more people to buy their product. For example, in 1994, Starbucks starting selling Frappuccino at their store. Price: Starbucks announced in 22nd September 2010 that there will be an increase of prices for their beverages due to the increasing prices of raw materials such as coffee beans. They tried to maintain the prices to make it affordable to everyone.
STARBUCKS STRATEGIC MANAGEMENT ANALYSIS INTRODUCTION Starbucks Corporation is an American multinational corporation founded in 1971 in Seattle, Washington. Starbucks is the leading marketer, retailer and roaster of specialty coffee around the world. The company has more than 182,000 employees in more than 19,767 company licensed and operated stores that are found in 62 countries around the world. Starbucks product mix includes roasted premium coffee, handcrafted high-quality coffees, a variety of fresh food items, tea, and other beverages. Starbucks also sells a variety of tea and coffee products under their licensed trademarks through different channels such as food service, grocery, and stores accounts.