Starbucks Case Analysis
Introduction
The general environment of the coffee industry is affected by many different factors. From their first store in Seattle, WA Starbucks learned that customers wanted a place to sit down and have a cup of coffee, while other customers wanted to get coffee quickly by utilizing a drive-thru. Both of these options have been added to appeal to a larger customer base. When Howard Schultz first entered the Starbucks business, he was struck by the philosophy of Starbucks. Starbuck not only stood for good coffee, but also for the dark-roasted flavor profiles. Top quality, fresh-roasted, whole-bean was the company’s differentiating feature. After Howard Schultz joined the company, he expended the Starbucks’ differentiation strategy and help company pass through the difficult economic period.
External Analysis
Nowadays, globalization has changed worldwide trend of doing business. Government pays more attention on coffee bean business. The government will levy coffee bean export quotas and issue some regulations to protect local farmer. Also, government will publish trade restriction to limited exports. These regulations provide Starbucks Company a stable global environment and price.
During 2008 to 2009, the global market suffered economic crisis. Starbucks company net revenues fell from 8,771.9 to 8,180.1 million. The international coffee bean market increased the demand for coffee bean. Moreover, coffee bean price were affected by cultivation and weather. These factors affected Starbucks cost of sold.
Coffee becomes a popular beverage around the world. The customers have different demands for their life, someone need a place to enjoy their coffee time and another one wants drive-thru for fast life.
Internal Analysis
SWOT Analysis
Strength:
Market Position and Brand Recognition: Starbucks has a significant geographical presence across the globe and maintain a 36.7% market share in the United States and has operations in over 60 countries. The strong market
The general environment of the coffee industry is affected by many different factors. From their first store in Seattle, WA Starbucks learned that customers wanted a place to sit down and have a cup of coffee, while other customers wanted to get coffee quickly by utilizing a drive-thru. Both of these options have been added to appeal to a larger customer base. When Howard Schultz first entered the Starbucks business, he was struck by the philosophy of Starbucks. Starbuck not only stood for good coffee, but also for the dark-roasted flavor profiles. Top quality, fresh-roasted, whole-bean was the company’s differentiating feature. After Howard Schultz joined the company, he expended the Starbucks’ differentiation strategy and help company pass through the difficult economic period.
External Analysis
Nowadays, globalization has changed worldwide trend of doing business. Government pays more attention on coffee bean business. The government will levy coffee bean export quotas and issue some regulations to protect local farmer. Also, government will publish trade restriction to limited exports. These regulations provide Starbucks Company a stable global environment and price.
During 2008 to 2009, the global market suffered economic crisis. Starbucks company net revenues fell from 8,771.9 to 8,180.1 million. The international coffee bean market increased the demand for coffee bean. Moreover, coffee bean price were affected by cultivation and weather. These factors affected Starbucks cost of sold.
Coffee becomes a popular beverage around the world. The customers have different demands for their life, someone need a place to enjoy their coffee time and another one wants drive-thru for fast life.
Internal Analysis
SWOT Analysis
Strength:
Market Position and Brand Recognition: Starbucks has a significant geographical presence across the globe and maintain a 36.7% market share in the United States and has operations in over 60 countries. The strong market