Starbucks Strategy and Environment

Starbucks Strategy and Environment

Introduction

With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years.

In 1971, a coffee bean retailing store named Starbucks was opened by Jerry Baldwin, Zev Siegl and Gordon Bowker in order to sell specialty whole-bean coffee in Seattle. And the name "Starbucks" was from mate Starbuck in the novel Moby Dick. In the decade, Starbucks had five stores and a small roasting facility in Seattle till 1981. In 1982, Schultz joined Starbucks as marketing manager. In 2001, Interbrand (a brand management consultancy) had named Starbucks as one of the 75 global brands of the 21st century. In 2002, Starbucks had 5689 outlets in 28 countries. By early 2006, Starbucks had more 11,000 stores around the world. Starbucks had turned coffee from a commodity into an experience to savor. (Business Management Updates and Resources [online])

Starbucks has been struggling amidst a faltering economy, its own rapid growth (international expansion and growing presence in 43 countries) and increased competition from cheaper rivals. Starbucks wants to turnaround its business by providing customers with the distinctive Starbucks Experience and building on Starbucks legacy of innovation. (Business Management Updates and Resources [online])

Strategic Issues

To the drinking industry, the soul of keeping the brand forever is the “experience”, rather than the “flavor”, which means a lot to every corporation. “The...

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... strategies and environmental analysis, there always been a long distance for Starbucks to go.

Reference

Business Management Updates and Resources, 2008. Will restructuring help Starbucks Turnaround? Available at: http://industryweek.blogspot.com/ (Accessed:1st March 2008)

Ball, DA, McCulloch, WH, Frantz, PL, Geringer, JM & Minor, MS (2001) International business: The challenge of global competition, 8th Edition, McGraw-Hill/Irwin

De la Torre, J, Doz, Y & Devinney, T (2000) Managing the Global Corporation, 2nd Edition, New York: McGraw-Hill

Johnson, G & Scholes, K (2002) Exploring Corporate Strategy Text and Cases, 6th Edition

Starbucks Coffee Company, 2007. Starbucks Launches New Warm Food Offerings in New York Metro Area. Available at: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-02-2006/0004443111&EDATE=(Accessed:1st March 2008)