Starbucks is a company that is active and popular in the coffee market. The name Starbucks is synonymous with the word coffee. The Company manages the production line from the choice of coffee, through roasting, until the sale of finished product in a cup. With more than 15,000 stores worldwide, Starbucks is clearly the market leader.
From this status, one can analyze the various aspects of their development. The threat of potential entrants is coffee shops outside the home and the barriers to entry are rather small. Financial barriers are low because the investment is meant to open a store. With regard to trade barriers, the best location in the market is crucial. Barriers to resources and skills are minimal, since anyone can enter into a coffee industry, as coffee is not a scarce commodity.
The bargaining power of buyers is relatively low as the buyers are considered customers. Buyers can not decide, but can influence prices. Starbucks is usually quite expensive, and there are several kinds of coffee, however, they are considered low cost. In the case of Starbucks suppliers are producers themselves and lead the value chain from beginning to end.
The threat of substitute to services or products are those that can replace coffee tea, juice, hot chocolate and all other kinds of beverages. However, coffee has a fad in western society that creates an increase in consumption year after year.
There are several major competitors to Starbucks including MacCafé, a component of the brand McDonald, Dunkin Donuts in addition to donuts makes coffee and Tim Hortons is a fast food restaurant chain specializing in coffee and donuts.
They also benefit from very good locations in large cities. The government also plays the role of a deterrent in several countries. Starbucks is having franchise problems and has to face many barriers while making its entry into the Indian market.
Tags: Starbucks, development strategy, development marketing analysis
[...] As service is one of the primary functions of each outlet, quality service will have a positive impact. The second act was increasing the size of the branches. The Chinese respond more to the concept of the Starbucks experience rather than the mechanical purchase of coffee. The most important party are the customers, the idea of Starbucks is to create a unique environment that suits the habits and quirks of their customers. Infrastructure was modified to meet expectations and make the value chain more efficient. [...]
[...] However, in 2008, Schultz decided to refocus the company on its original product: coffee. Question Briefly describe three activities of (a)Corporate Social Responsibility / CSR of Starbucks and specify the orientation of each stakeholder and function of the chain value, they refer to "Corporate social responsibility defines how an organization exceeds its minimum obligations to its stakeholders. " In February 2008 Starbucks closed more than 7,000 stores in the United States for a day. This is the first act of social responsibility. [...]
[...] The creation of the foundation aimed to improve the image of Starbucks in China, this intervention was part of the development of integrated communications technology development. Question How has Starbucks adapted its chain to suit the Chinese market? The strategic decisions taken by Starbucks that changed its initial establishments are mentioned chronologically: In 1990, its entry into China was characterized only by the function of production and supply. Marketing, logistics and service was guaranteed by the Beijing Mei Da Coffee, wholesaler serving in hotels and restaurants. [...]
[...] Then the company strengthened its position by educating employees and customers in the 'coffee experience', translating the Starbucks name into the local language and after some time, expanding its stores to their Chinese customers who have begun to enjoy their coffee. To strengthen its image in China, Starbucks decided to make itself known mainly through its commitment to charity. New products and services: In 2008, Starbucks introduced a new formula of coffee in supermarkets. In China, Starbucks began to introduce new products such as tea based drinks and local pastries because its Chinese customers like to eat something with their coffee. [...]
[...] In early 2008, after only 37 years, Starbucks already had 15,000 stores in over 40 countries. The expansion of brand Starbucks in all these countries and the strategic locations of its outlets (before a station for example) has enabled the brand to establish itself on the international market. Unfortunately, the saturation of the U.S. market and the fact that the stores were getting too close to each other led to cannibalization Customer loyalty through quality: The company works directly with manufacturers of coffee and not through wholesalers or importers. [...]
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