The Seattle-based coffee company called Starbucks has been dominating the coffee industry all over the world. With its business running for more than a decade now, Starbucks has become a household name through its popularity in its stores worldwide. Starbucks has elevated the standard of coffee by turning it from a coffee drink to a coffee experience. The company earned its worldwide fame through their strategy of revolutionizing the world of coffee drinking. Their efforts became a huge success. The company expansion has been speaking of its achievements; for today, Starbucks has 15,011 stores scattered in different parts if the world.
[...] Threats A looming threat to the growth of Starbucks is the plans of expansion by food company giants like McDonald's. Recently, there have been reports that McDonald's plans to expand its offerings by including gourmet coffee and by putting up coffee bars in its branches (“McDonald's Elbows Starbucks Out Of The In an article written by Andrew Wilkinson for the Forbes Magazine, Wilkinson said: Elsewhere McDonald's has used global branding and great strategy to penetrate the Middle Eastern and Asian markets at twice the rate at which it's growing global sales. [...]
[...] Another strategy according to the company is: Shultz is pushing for a return to his original vision of Starbucks with a highlight on premium coffee, and a customer focus. This also means changing the machines that are used to brew the coffee. Starbucks announced on Wednesday the acquisition of The Coffee Equipment Company and its Clover brewing system (“Starbucks Enhances Coffee ‘Experience'”). But the key strategy that will come into play for the Starbucks company is when Schultz was reported to reassume his position in the grand latte chain as chief executive to spin the wheels back to where the company goals should be directed: people company, serving coffee.” Conclusion In spite of the setbacks the company has faced throughout the years, Starbucks has maintained to be at the top spot for coffee consumers. [...]
[...] This provides the customers easy access to their favourite Starbucks drink just at the turn on the corner. Weakness However, it is also said that one's strength can also be one's weakness. The rapid expansion of the company in the global scene also led to its setbacks. In the last quarter of 2007, Starbucks' stock has sunk 90 cents in trading which has fallen almost 35% year-to-date (“Starbucks Earnings: Not Grande”). Founder and former company president Howard Schultz has reassumed the role of chief executive, based on reports this year. [...]
[...] The perfect ambience also adds to a holistic coffee experience which is also a trait that Starbucks possess. Its preference in entertainment has added to the volume and texture of the surroundings in each of the company's store worldwide. The company has continually selected the best in music, books, and film from both emerging and established talent, offering Starbucks customers the opportunity to discover quality entertainment in a fun, convenient way (“Company Fact Sheet”). This aspect has also created the mood for the customers to sit and enjoy their conversations or moments over coffee. [...]
[...] Over the past years, Starbucks has broadened its customer base, which now enables the coffee conglomerate to cater a large number of blue collar, less affluent customers who are more likely to react to economic pressures by scaling back visit frequently (“Starbucks Earnings: Not Grande”). Competition As mentioned earlier, other companies are trying to gain leverage against Starbucks by introducing gourmet coffee in their expansion plans. One food giant in particular is McDonald's, who, according to an author, is now planning to expand its coffee offerings (“Starbucks Earnings: Not Grande”). [...]
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