Starbucks, was created in 1971 after noticing how much some Americans love coffee, has now become the largest global network of "coffee houses". In 2005, the company had an average of four new stores opening a day, around the world. The rapid development of the sign is impressive. Market leader,Starbucks has managed in recent years to win the heart of millions of citizens, whether they are American, Asian or European.
Starbucks offers a range of products, wide and varied, based on coffee. To eat in or take-out, hot and cold drinks, sweet and savory cakes, accessories of all kinds related to coffee all available in a modern and relaxing setting. The concept has the advantage of creating a break with the traditional cafes. This is primarily a public space for discussion and sociability, and consumption but also for disseminating information.
The strength of this group is, in addition to the quality and variety of products offered in all the work done upstream. Strategies are studied in depth and strictly enforced at all points of sale worldwide.
In order to understand this success, this paper will develop the study as follows:At first, having traced the history of the advent of Starbucks, it will see how it has invested in the coffee market. Then it will study the type of network implemented that enabled its implementation, and finally, its place in this market. In a second step, it will first address the internal policies of the group, then will continue the analysis of external factors.
The internal analysis will define the strategies used by the group and so understand how Starbucks has managed, despite the barriers in front of it to become leader of the coffee market across the globe. Added to this internal approach, an illustration of its internationalization strategy will be developed through two examples.
The external analysis, in turn, will be made possible through the study of competition and the environment (environmental influences political, economic, sociological, technological, environmental and legal).Before concluding this matter, the paper will develop various criticisms in terms of strategies used in relation to the previous analysis.
Starbucks operates throughout the chain, from harvesting the grain to the marketing of coffee. The company cultivates its crops in the three coffee growing regions: Latin America, Indonesia and Africa. The company uses only premium quality coffees. Thus, it opened in 1971, its first roasting plant and has four so far located in Kent (Washington DC),York (Pa.), Carson Valley (Nevada) and Amsterdam.
The site in Amsterdam caters to the markets in EMEA (Europe, Middle East and Africa) and U.S. sites serving the North American continent and the Pacific region. Starbucks has its own network via retail outlets, but is also found in supermarkets, airports, bookstores and through authorized resellers.
Starbucks in France, is run by Starbucks Coffee France SAS, a company formed in a joint venture between Starbucks Coffee International and Grupo Vips, since September 2003. The multinational has chosen to grow only through a network corporate store and totally excluded the partnership or franchise. According to French officials, this development strategy is used to benefit from optimal management of retail outlets and customers and to ensure quality service .
Tags: Starbucks, international coffee chain, strategy analysis
[...] Another aspect turns out to be the questionable relationships with coffee producers. Starbucks advertises its social contribution to poor countries and its role in fair trade, but what is the reality? The fact is that Starbucks pays its Ethiopian farmers only $12 a kilo while the store sells for $ 42, representing a margin of 350%. It is important to remember that Ethiopia is one of the poorest countries in the world but it is also the country providing one of the best cafes. [...]
[...] Like any leader, Starbucks has some weaknesses that prevent it from growing in certain regions. Thereafter, as we read further it will allow us to understand the cultural barriers that hinder its growth. Moreover, the prices are extremely high, Starbucks a cup of coffee will cost you around € 2 .Still, Starbucks has no difficulty in imposing such exorbitant prices because all cannibalize around the company shows its monopoly in the field. We will therefore initially analyze the internal strategies of the group by treating each part of its marketing mix. [...]
[...] and other countries. • Stable government Starbucks has an interest in studying the political stability of countries in which it plans to invest. A change of government may lead to a change in taxation and legislation, even in a politically stable country. Thus, it seems obvious to thoroughly analyze any inauguration. Economy • International stability The international economy should be considered because it can affect the sales of Starbucks. The events of September 11 have undermined global economic stability. If the world market is in recession it is not the perfect time to go international. [...]
[...] Its communication In the beginning, the time and money spent by Starbucks in communication were fairly limited. The group had confidence in its customers' word of mouth that flowed and attractiveness of its stores that had a storefront. However, since its global expansion, Starbucks had expanded its budget. It uses medium including TV for advertising. For example, one can see the following link http://www.youtube.com/watch?v=ZcISp0mOIYY&mode=related&search one of its advertisements, which highlights a yuppie (the heart of its marketing target) waking up and sipping a double espresso shot and then going to work. [...]
[...] How dangerous is it? Despite the competition, it is important to remember that Starbucks is and still remains the market leader. The figures seem to attest since Starbucks has 35% market share, against 20% for bars and 14% for Internet coffee shop. The remaining market share is divided between other resellers. To start this external analysis, we will study the competitive environment of Starbucks using the Porter five forces to assess the competitive intensity. Intra-industry competition Starbucks identifies a wide range of competitors. [...]
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