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's high-end brand image is maintained by the firms generic strategy. Over the years, the prices tend to rise a little due to coffee means, dairy and some other raw material increasing in cost. Starbucks aims to keep or even make the prices for espresso and some other beverages lower, whilst increase the prices for labor-involving and bigger-in-volume drinks. They have both affordable and high-premium coffee offers, for instance, they may have a counter offer for one dollar for a coffee item and a seven-dollar offer for an exquisite Costa Rica coffee which is expensive to purchase
Starbucks strategically chooses store locations and sets up shop in prime, premium, high visibility locations such as Retail malls, Business centers, Student dense locations and shopping streets, earning them a competitive advantage over its less famous competitors and an edge to tap prime markets. With free Wi-Fi, music, great service and importantly, a warm atmosphere, the stores are modern, welcoming, inviting and are a familiar place for people to connect (Starbucks, 2015). Starbucks has been rated in the best places to work for by rating agencies across the world including Fortune (Fortune, 2013). Starbucks is known for the benefits it provides to its employees such as stock options, retirement benefits among others, translating into exceptional customer service. A diverse product mix (Starbucks, 2015) that caters to diverse groups and its “Socially Responsible” tag (Starbucks, 2015) have helped accentuate the
Weaknesses High priced products: Starbucks is being differentiated with the high quality of products but during the economic recession, consumers might have to switch costs to competitor products that the prices of their products are low. The premium prices can create weaknesses to the company that is trying to succeed in less developed countries. High dependence in the U.S. market: Starbucks operates 7.049 stores in the U.S. while 8.078 stores are being operated in total America and 2.116 stores internationally. The percentage of stores operated in U.S. is 69% which diminishes long term growth of Starbucks. file:///C:/Documents%20and%20Settings/marketing/%CE%A4%CE%B1%20%CE%AD%CE%B3%CE%B3%CF%81%CE%B1%CF%86%CE%AC%20%CE%BC%CE%BF%CF%85/Downloads/Starbucks%20Fiscal%202013%20Annual%20Report%20-%20FINAL.PDF
Starbucks and Tim Hortons Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.
The statement which was previously mentioned shows that Starbucks does not solely concentrate upon their profits, but their stakeholders’ well beings and the environment as well. This firm tries to launch many campaigns based on the three factors of the Triple Bottom Line. As a result, when it comes to Triple Bottom Line framework, Starbucks was given the opportunity to appraise and monitor its operations. Interestingly enough, Starbucks is globally well known by people around the world. In a month, Starbucks’s customers roughly call
There is another coffee shop, the Indian Coffee House, which has been solely dependent on word-of-mouth advertising until now. It has been hugely successful because its patrons either blog about it and spread the word or suggest it to their friends. And the role of marketing communication in this case would be thus remind the consumer of the rich heritage of ICH by extending their word of mouth strategy through tools such as PR, social media and good will of the patrons. ICH marketing communication will worked for the overall goals of the business by developing strategic campaign and helping ICH to increase sales, retain existing customer with their quality service and help the brand gain credibility solely through word of mouth. Also ICH used public relation
It is an American company founded in 1971, it is a leading retailer and marketer of specialty coffee around the world and according to (Starbucks, 2016) it has a majority of market share having 32,8% in U.S. alone. This is a brand that has grown from a small retailer to a multibillion-dollar company and gained global recognition and worldwide success. Starbucks has opened over 20,000 operated and licensed stores in 70 countries and currently has employed over 180,000 employees (ibid.). Starbucks product assortment consists of premium coffee, high variety of beverages, fresh food and healthy snacks as well as offering an upbeat environment in their coffee shop. This research paper uses SWOT as analytical tool to examine internal and external factors, which affect the operation process of this coffee industry leading company.
Starbucks capacity management strategy enables the firm to identify underused products and reallocate its excess capacity to where it can be utilized and monitor the impact. Furthermore, the organization can match its supply of raw material to its demand to effectively run the company operations. By applying this strategy Starbucks saves money and uses these extra funds to develop new products and services. Fluctuation in demand is an inevitable matter that faced by all business. Starbuck cope with this issue by creating loyalty card program through mobile phones that can be used by customers to collect points and take advantage of promotions.
Introduction Starbucks is a US based corporation that has established itself as the market leader in the coffee industry with its unique portfolio of around 87,000 unique drink offerings that mainly consist of different variants of coffee, & also includes tea, a range of fresh foods, & other beverages. Their exhaustive chain of coffee shops offer a social experience combined with high quality coffee & beverages, have significantly contributed to their success. With over 21 billion US$ in 2015, 19.286 billion more than it's nearest competitor, Costa Coffee, the company has been growing by reinventing itself through clear understanding of evolving customer expectations & changing market trends. Starbucks managed to recover from the impact