Starbucks Analysis
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Introduction
This report was written by three Arnhem Business School students for the purpose of providing a full analysis of the Starbucks Coffee Corporation.
Although Starbucks is operating internationally, this report is mostly based on the United States, as this is Starbucks domestic market and until today its main operating market.
First, the internal analysis gives an overview about Starbucks as a company.
Second, the external analysis is used for analyzing the market Starbucks is operating in.
Third, the strategic options possible for Starbucks are analyzed.
Last, an explanation will be given on how Starbucks should implement the best strategic option available.
Introduction
1 Executive Summary
INTERNAL ANALYSIS
2 The Company and its strategy
2.1 History:
2.2 Mission Statement
2.3 Global Strategy
2.3.1 Customer service excellence
2.3.2 Product quality
2.3.3 Accessibility
2.3.4 Innovative Business Strategy
2.3.5 Brand recognition
3 The Marketing Strategy
3.1 Product
3.2. Price
3.3 Place
3.4 Promotion
Helping the environment and community is proven to be a powerful marketing tool for Starbucks. Firstly, Starbucks helps the community and the environment, and at the same time creates the image of being a socially responsible company that contributes to better living standards. Customers are aware of the fact that when they buy something from the company, they also do something good for the community.
In addition to that Starbucks uses a non-typical approach to promote its products. Starbucks products are neither advertised in TV nor radio commercials. Instead, Starbucks intents to build up a reputation and a strong brand image by using community programs and relying on word-to-mouth promotion.
4 Corporate Culture and Management Style
4.1 Executives
4.2 Board of directors
4.3 Employees
5 Financial Analysis
5.1 The first steps
5.2 The 1987-1992 period (private company)
5.3 The expansion (public company)
6 Conclusions Internal Analysis:
6.1 Strengths
6.2 Weaknesses
EXTERNAL ANALYSIS
7. Market Analysis
7.1 Demography
7.2 Economy
7.3 Technology:
7.4 Social and cultural:
7.5 Environmental:
7.6 Political:
8 Target groups
8.1 Young adults
8.2 Business people
8.3 Seniors
9 Competitor Analysis
9.1 Strategic group map
9.2 Caribou Coffee Company, Inc.
9.3 Diedrich Coffee, Inc.
9.4 Panera Bread Company (PNRA)
9.5 Other competitors US market
9.6 Competition in Europe and Asia
10 Porters 5 forces
10.1 Threat of new entrants
10.2 Bargaining Power of Customers
10.3 Bargaining Power of Suppliers
10.4 Threat of Substitute Products or Services
10.5 The Intensity of rivalry among competitors
11 Conclusion External Analysis
11.1 Opportunities
11.2 Threats
Volatile coffee markets
Market/lifestyle fluctuations
Fierce Competition
12.1 TOWS analysis:
12.2 Strategic options
13 Bibliography
Appendix 3
Further explanation Strategic Options:
Opportunities combined with Weaknesses:
Threats combined with Strengths:
Threats combined with Opportunities:
1 Executive Summary
Starbucks has become a well-known company for selling the highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans. Starbucks created a coffee for the coffee connoisseurs and got to great lengths to acquire only the highest quality of coffee beans. Store Managers of Starbucks coffees are extensively trained for one year. Starbucks has the distinction of being the publics educator on Espresso. They have also recently started to expand to packaged and prepared tea in response to the growing demand for this product. There are no other national coffee bar competitors in the same scale as Starbucks.
According to a 2004 report published by The World Bank, the term “specialty” coffee originated in the U.S.