Introduction Starbucks built an empire for the modern persons’ need for a quick coffee. This case study is created on the basis of Starbucks Corporation. This case will include an analysis of differentiation and an expansion strategy that Starbucks has implemented; following it up with Porters Five Force Model and a SWOT analysis to analyze the internal and external environment of Starbucks Corporation. Background The history of Starbucks, all started out when it was introduced in 1971 by three academics, Jerry Baldwin, Zev Siegel, and Gordon Bowker, and by 1980, Starbucks grew to four stores in Seattle. In 1981, Starbucks’ expertise of dark-roasted coffee caught the attention of Howard Schultz who was an American business man, and since
The company has a large trademark portfolio consisting of many internationally famous marks, including Starbucks, Starbucks coffee and the Starbucks logo. To protect its marks, Starbucks has aggressively persuaded trademarks infringement action all over the world. By rejecting others from using the Starbucks brand, it has been able to expand its business throughout the world. In 2006, Starbucks won a trademark infringement lawsuit in China against Shanghai Xingbake coffee shop. The Chinese company used a green and white logo and used the name “xingbake” in its mark, which referenced Starbucks because in the Chinese the word xing means star and the letters ba ke, when it’s pronounced, sound similar to bucks.
Starbucks international entry strategy for China was basically two-fold. The first phase of the entry was to build the brand. In the initial stages Starbucks tested the waters by offering free cups of Starbucks coffee to hotel guests within the city of Beijing. This allowed Starbucks to see how coffee would sell in a primarily tea drinking market. With the combination of foreigners familiar with brand and the Chinese willing to blend-in with the western ways, Starbucks soon realized they had something brewing and pursued the China
“The total number of coffee shops in the US is forecast to grow by just 2.17 percent this year, the slowest growth rate seen in the last six years” (Mintel study). The Company has been fast expanding in sales of its own bottled drinks and other coffee assortment at supermarkets and other locations. the company continues to find growing through other beverages, such as tea, beer and wine. Starbucks has as well continued to emphasis on its café presence through a widespread variety of food options, stylish restaurant remodeling, a revamped rewards program partnership with Chase and Visa, launching its first co-branded reward credit card to allow consumers to earn Starbucks reward points when they shop elsewhere. “Americans” increasingly on-the-go lifestyle is leading to a surge in demand for ready-to-drink beverages.
This strategy and approach keeps the company on the top and customers coming back for more. Starbucks sells high quality food and brands for affordable prices. Recently, the company launched a wine collection in addition to the coffee. Now, customers can enjoy a coffee in the morning and a wine after work. This strategy will bring more revenue to the company and will put the Starbucks on the map with other great small shops.
Starbucks Corporation is an America Coffee organization and café chain. Starbucks was established in Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker. Starting at 2017, the organization has 27,339 outlets around the world (statista.com). The PEST analysis tool demonstrates the huge impacts on Starbucks considering qualities of the macro-environment. As the world 's greatest café organization, Starbucks keeps on coming out on top in reasonable business and development.
They make amazing coffees from the finest quality of Arabica beans thus they are able to maintain their focus.The closed down all their entertainment studios and began focusing solely on coffee.Then is opportunity.Without opportunities,Starbucks wouldn’t have been able to expand it’s business globally.Originally,Starbucks coffee shops are only used for short hours but now there are also stores that are open for 24 hours but most stores are open atleast until 10pm.This gives Starbucks an opportunity to sell their food and beverages for a longer time thus can use their materials efficiently to gain higher profit.Besides that,Starbucks took the opportunity to expand their business into Asian countries as Asians love coffees and teas and then into Europe countries.Starbucks also open their stores in busy places such as malls,near colleges and