...24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks some new and relevant elements for the future strategic direction of the...
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...business. Starbucks has analysed the marketing mix to develope their brand in many market mostly in the Western country. However, in Eastern one, specifically in Vietnam market, the marketing mix strategy have to be different. This report will talk about the individual elements of the extended marketing mix and how to use the marketing mix in different contexts of Starbucks Vietnam. Starbucks Vietnam Marketing Mix Report 1. The explaination of how Starbuck Vietnam developed products to sustain competitive advantage Product is something that sastisfies a set of want that customers have. In every companies as well as Starbucks Vietnam, when they want to develope new product, they have to follow the eight stages of new product development (NDP) process: Figure 1: New Product Development Process (adapted from learnmarketing.net: New Product Development (NPD), n.d) The first two stages are the idea generation and idea screening. When Starbucks wants to make new product, the company needs to have new idea and the idea needs to be sreen clearly. The idea of Starbucks Vietnam can come from many ways that are from their competitor, through the market analysis or from the holiday, season or popular event. As can be clearly seen that, through time to time, Starbucks has came up with many new idea to survive in Vietnam market. They analyse the coffee culture to create the Asian Dolce Latte to sell in Vietnam as well as Asian. They also has an idea to serve Starbuck tea in Vietnam...
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...Here is an analysis of the coffee shop industry. Power of buyers There is no, or very limited switching cost for customers, and there is an abundance of other substituting products that the ones offered by Starbucks. Even though this is a threatening fact for Starbucks business, this is what makes them unique buy offering the "Starbucks experience". This have shaped their success. However coffees addictive nature can also result in less rational decision which can overrule the need for a "Starbucks experience". Taking the arguments above into consideration, the buyers power is considered high. The threat of substitute products and services for Starbucks is substantial. Specifically, substitutes for Starbucks Coffee might include drinks like tea, juices, soft drinks, water and energy drinks, whereas pubs and bars can be highlighted as substitute places for customers to meet someone and spend their times outside home and work environments. However, Coffee is an important part of many people's lives and habits why coffee might be considered to be hard to substitute. Also Starbucks has shown their strengths in innovating related products why they are able to cover most related products in their product portfolio. Consequently, the threat of substitutes are considered moderately low. Suppliers power are considered relatively low. This is due to the fact that Starbucks might be a very important costumer to each of them. At the same time, Starbucks has a large numbers of suppliers...
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...Tugas Personal ke-1 Minggu 1 Answer for Toyota case : 1. In what ways is Toyota's new-product development system designed to customers ? Toyota owners want to keep making profit. The best way to do it is to make customers buy more cars of their brand. Only happy customers stick to a brand they've been happy with. It doesn't take lots of fat tires or fancy styling to keep them happy, most want just plain old reliability and most miles per their money spent (not just for fuel, but ALL costs). “Do that and you're the winner” that's the Toyota method. Toyota system responds also more quickly than competitors. The chief engineer have the responsible for the product to marketing. There are a number of features to this system that make it customer oriented. * The Toyota system responds more quickly than competitors, allowing the company to correct any mistakes and react to market trends faster than competitors. * The system has a chief engineer responsible for the product from design to marketing. This may allow consumer research to function as a direct input into engineering specifications rather than become a secondary concern after the product is designed. * Since the corporate philosophy is to serve customers, consumer inputs are more likely to be used develop better new products. 2. In what ways is Toyota’s manufacturing system designed to serve customers ? Toyota's manufacturing systems that are designed to serve customers, including : * Employees, even...
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...Coffee: “Buy Low and Sell High” Katrina Joy S. Leoncio California InterContinental University Abstract As simple and delightful as it may sound, buy low and sell high has it’s own advantages and disadvantages. It may be beneficial to one but can cause damage to another. We have to take into consideration that to have a long, lasting and healthy economic condition, all parties involve in one process or cycle will benefit and provide for each other. Buy low? How low, is low? What would be the effect of purchasing low items to those who produce it? Sell high? How high? Can the consumer bear it? Coffee: “Buy Low and Sell High” It is common to think that when price of a certain product drops, there will be a domino effect of conveniences and savings. As a consumer, seller of coffee products, or coffee farmer, can they sense this favorable situation? What causes the price to decrease? Who then will really benefit if the price of coffee beans drops? Let us consider first the game players in our commodity network that is vital and important to each other. Producers or our coffee farmers first invest their time, money and effort to produce coffee beans which later on sold to restaurant owners and retailers. Consumers then purchase them for consumption. Each one is important for each survival and maintaining the balance for continuance is a must. The increase in supply or overproduction of coffee beans creates an excess supply causes equilibrium price to fall, thus...
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...environmental elements that have to be considered by an organization when developing strategies. Political From the discussions of Thomson, Shah and Thomas (2006), the withdrawal of the USA from the International Coffee agreement that set limits of coffee exported could have a major impact on Starbucks operations. Furthermore, political stability in coffee producing regions like Zimbabwe will have huge impact on Starbucks operations as farmers can be able to concentrate on producing quality coffee beans. Economical High inflation rates in the countries where Starbucks have established presence might result to low sales as potential customers might not afford to regularly buy coffee. Since Starbucks exports coffee from various countries, fluctuating exchange rates might result to reduction in profit margins. Finally, slow economic growth rate in countries where Starbucks has established presence as already highlighted might result to low consumer purchasing power implying decrease in demand for coffee. Social Since coffee is now accepted throughout the society, it is now easy for Starbucks to sell coffee in various regions than it was in the past when the company was established. Technological The advancement of Information Technology means that Starbucks can be able to make use the technology to achieve efficiency in the corporation’s operations. In addition, advanced technology can be used to improve Starbuck’s Research and Development team. Legal Three Year...
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...unit of the Nestlé group based in Switzerland. Since the 90’s Nespresso sell machines, which have a market success. Packaged portions of espresso coffee are one of the fastest growing segments of the coffee market. It has between 20 and 40% of the value of ground coffee sales in the European coffee market, which totals USD 17 billion. Nespresso sales have been growing at an average of 30% per year over the past 10 years and more than 20 billion capsules have been sold since 2000 at a current selling price equivalent to about USD 0.43 to USD 0.62 per capsule. Furthermore, Nespresso reported annual sales of USD 3,22 billion in 2011, growing by 20% during the fiscal year. The aim of Nespresso is to become the icon of the perfect coffee worldwide and to be established at the super premium brand. 2. 5 FORCES, MODEL OF PORTER a. Rivalry among competiting sellers Competitive intensity of the market is strong because of the many multinational that manage the market and who have a couple of coffee brands each one. Furthermore, Nespresso did have a patent for his capsules. But now, different companies have the right to manufacture capsules. Nespresso has not the monopoly on the portion capsules market now, and the rivalry is constantly increasing between the giants of the coffee market. b. Buyers Buyers have no bargaining power with brands that manufacture and/or distribute this portioned coffee. These are brands that are mostly multinational companies leading dance...
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...chosen: Starbucks [pic] 1. Brief introduction to the company and its supply chain. Company Profile In 1971, a humble coffee house was opened in Seattle by three person- Jerry Baldwin (English teacher), Zev Siegel (History teacher) and Gordon Bowker (writer). The coffee house was named “Starbucks Coffee, Tea, and Spice”, inspired by the Melville’s Classic Novel “Moby Dick”. The original logo of Starbucks was a two-tailed mermaid circled by the name “Starbucks Coffee Tea Spices”. The company expended slowly and by 1980s, it had a roasting plant and 4 retail stores. In 1987, the owners decided to sell the business. Howard Schultz bought the company and became the president and CEO. Since then, Schultz brought in the experienced person, Howard Behar and Orin Smith to build the company. (1) By 1991, the company had over 100 stores and went listed in 1992. By 2011, Starbucks Corporation has 17,009 stores; 8870 owned stores and 8139 licensed stores. As of December 28, 2014, the total stores worldwide reached 21,878 in 66 countries. Products of Services Starbucks offers variety of premium products that customers can enjoy in the stores, at home, at office and on the go. The products offered are categorized into Coffee, Handcrafted Beverages, Merchandise, Fresh Food and Consumer products. In Coffee category, there are more than 30 blends and single-origin premium coffees offered. In Handcrafted Beverages category, Starbucks provides...
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...1- Problems/Challenges that Starbucks faces Problem 1: Stuck in the middle of the market segment No clear position- More expensive than competitors like McDonalds but less expensive than xxx. Support Graph: showing the Starbucks pricing compared to competitors. Problem 2: Long term viability of the industry Stagnant market for Coffee? Main business model under threat due to declining/stationary daily coffee consumption. Support graph- Showing the change in trend of coffee consumed SLIDE 2- Recommendations/Solutions Solution to problem 1 Create a Premium Brand -We move upscale by developing a new upmarket brand (photoshop a classy looking logo; show chart similar to Matra with the range of Starbucks-owned brands) Advantages: -Starbucks’ current brand does not get diluted. -Variation in store aesthetics will reinvigorate interest- New upmarket stores should have classier and more stylish/suave renovations & furnishing, older/classic machines, better-trained baristas. (Currently only 4 variations of store designs and lack of depth in barista training) -tap into the higher end/upscale market segment currently ignored. Problem 2 Why is coffee consumption reducing? 1.Greater health consciousness/awareness 2.Customers moving on to substitutes- Tea, Redbull etc. 3.(We discussed it but I cant remember!) 4. Economy downturn (spending on coffee declined- 2008 shows a big decline in consumption) 5. A rise in Coffee beans and dairy products?? ...
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...Shereice Brown SWOT Analysis Section one Starbucks has been around since 1971 when it first opened its doors in Seattle. It has since then came a long way with its customer loyalty and products. Starbucks used to only sell hot drinks and teas, it has now expanded its products with sandwiches and other treats. The Starbucks customer base gets bigger every day. You can usually find a Starbucks every few miles; it is a huge corporation and continues to grow. “To inspire and nurture the human spirit-one person, one cup and one neighborhood at a time” (Starbucks.com). Section two Starbucks is internationally known, has a strong valuable brand. The most well recognized coffee brand in the world, Starbucks has strong brand awareness. There is not one person that does not know what Starbucks is. Starbucks stands out in the coffee market; it is one of the leading food chains. Its brand says a lot about the company and how it is ran. Starbucks has the largest coffeehouse chain in the world. The company operates around 20,000 coffeehouses in 60 countries, making it the largest coffeehouse chain in the world (Garcia). People are usually pretty eager to have a Starbucks close to them. Starbucks is growing in different countries. They are having an aggressive growth overseas and china. Customer base loyalty is what gives Starbucks their success. Starbucks is known for their membership rewards program. This attracts a lot more customers because there are a lot of perks to being a member...
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...Starbucks Change in Strategy By Brandon L. Chow Dr. Darryl Mitry National University School of Business & Information Management October 22, 2008 Executive Summary The following report and presentation is an inside look at Starbucks Corporation’s strategy and how it is currently affecting their sales and the long-term results. This will be accomplished by exploring four concepts of strategic business, the process for crafting a strategy, components of a macro-environment, five forces of competition and a SWOT Analysis. Analyzing the information and making recommendations based on the information gathered will show how Starbucks should keep or change their strategic plans. Focusing on principle concepts will systematically uncover what Starbucks has done well in the past, what current areas could be improved, and if the new changes ultimately weaken Starbuck’s market share in the long term or strengthen them. OVERVIEW Starbucks Corporation: Starbucks is constantly reinventing their stores to keep and attract customers. With coffee houses popping up in every nook and cranny, Starbucks has to be fresh and innovative. New technology that allows coffee customers to download the music playing in Starbucks stores to their iPhones is just the start of a wave of options for impulse purchases. Starbucks has roasters and brands of specialty coffee operating in North America, Latin...
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...Coffee Supply and Demand It was always well known that there is very high demand of gas in United States! After gasoline the next product that is high in trade with other countries is coffee. It grows in more than 55 countries across the world and supports lives of around 23 million people in farming sector. More than 115 million people in the world have their involvement in business of coffee. Growth, process, trade, and retail of coffee are the different stages all these people are involved in. In 2002, people around the world bought 14 million lbs of coffee, while around 17 million lbs was grown. This over production isn’t usual and leads to variation of price in the entire coffee industry. A world wide known firm, Starbucks, is the most popular corporation in today’s market. It is known for controlling a major part of coffee that’s being produced. In fact, Starbucks is the lead corporation in retailing of this product. It offers people a special braded coffee. They start by purchasing, roasting and then finally selling whole coffee beans and rich brewed coffee, espresso drinks, cold-blended drinks, and a variety of fresh made items, equipments, and a wide variety of high-quality teas. They have more than 9000 retail locations worldwide. When people consider coffee, Starbucks has gained a worldwide name by leading with high success. It was mentioned in a news article that Latin America is where Starbucks has been producing huge amounts and quality of coffee for ensuring...
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...1.0 INTRODUCTION Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Employees : 176,000 in 2008 Revenue for 2008 : US$10.383 billion CEO : Howard Schultz (Founder of Starbucks coffeehouse) Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. 1.1 BACKGROUND OF THE COMPANY 1.1.1 Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice in Touristy Pikes Place Market in Seattle. The three were inspired...
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...Bargaining power of suppliers Because of rapid growth in coffee industry the bargaining power of suppliers increased compare to 1980's. In the past farmers were not connected to each other so their bargaining power was low. Today majority of farmers are connected to each other by an initiative know as Fair Trade Certified Coffee which is designed by Transfair US. The purpose of this initiative is to ensure that farmers will get reasonable return on their crops and we can say suppliers are powerful today. But Starbucks has already made a long term contract with some of suppliers so supplier bargaining power will be less effective for Starbucks. In starbuck their bargaining power of suppliers is low because Starbuck already control as much of the supply chain as possible in market. Starbuck get highest-quality coffee in world, that sourced from the Africa, Central and South America and Asia- Pacific regions. It is because Starbuck have various suppliers so that they can negotiate with a reasonable price. Starbuck tak perlu resau tentang utk mdpt bekalan bahan mentah, jika salah satu supplier mereka tidak mau membekalkanya.ini adalah kerana starbuck mempunyai pilihan lainh utk suppy mereka bmentah. PROBLEMS Product innovation New products were launched on a regular basis for example, Starbucks introduced at least one new hot beverage every holiday season, but its seems not meet their customers satisfaction. Refer to Exhibit 10, customers that satisfied with new and innovation...
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...Starbucks – Strategy of a global brand * Table of Contents 1 Preface 2 2 The McKinsey-7S-Model 2 2.1 Strategy 3 2.2 Structure 3 2.3 System 3 2.4 Skills 4 2.5 Shared Values 4 2.6 Staff 5 2.7 Style 5 3 The Five Forces Model 5 3.1 Bargaining power of buyers 6 3.2 Bargaining power of suppliers 6 3.3 Threat of new entrants 7 3.4 Threat of Substitute products 7 3.5 Rivalry among competing firms 7 4 PEST Analysis 8 4.1 Political Influences 8 4.2 Economic Influences 8 4.3 Social Influences 8 4.4 Technological Influences 9 5 SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 10 5.4 Threats 10 6 Entry Strategies for new markets 11 6.1 Establishing a subsidiary 11 6.2 Arrange joint ventures 11 6.3 Licensing 11 7 Conclusion 12 8 Reference List 13 Preface The following analysis of Starbucks will focus on how internal as well as external factors influence this company. Internal factors will be highlighted by the McKinsey-7S-Model. External analysis will conclude Porter’s Five Forces model to outline the threats Starbucks faces in its industry. The SWOT Analysis will show Strengths, Weaknesses, Opportunities, and Threats to Starbucks business model. Furthermore the PEST Analysis will give explanation how external factors influence the company. Finally this paper will outline what strategies Starbucks uses to penetrate markets in new countries. The McKinsey-7S-Model Because...
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