Malaysia Coffee Case Study

Coffee Crafters manufactures fluid bed coffee roasters using a patent pending chaff extraction system that allows for low temperature venting and easy installation. Mission: to manufacture the world's best coffee roaster in its class. The global coffee industry generates combined revenue of close to $10 billion a year. Approximately 25 million people depend on the coffee industry worldwide for their livelihood. The coffee industry is very concentrated at the top and fragmented at the bottom with the top 50 companies taking up to 70% of the sales.

While the average coffee lover drinks 23 gallons of coffee every year, a tea enthusiast would generally drink 10.3 gallons a year. With this amount being consumed each year, what effect does it have on the human body? Coffee is the first thing that people associate with instant energy on a groggy morning. “In the U.S., coffee is king of beverages” (Reinke) Research has been done that has named coffee as an addiction to the people who consume large quantities of it. Coffee was named the top source of antioxidants.

Mountain Dew is the soda that contains the highest amount of caffeine. Tea is another way of consuming caffeine but, it only contains 47 milligrams of caffeine. This is not nearly as much as coffee, that’s why people rather go with coffee anyways. If you don’t want to have soda, coffee, or energy drinks you can always take a caffeine pill. Caffeine pills are a great way to get your daily caffeine dose, they are also much cheaper than coffee or energy drinks.

All around the world, millions of people start their busy days with a cup of coffee. It is a staple and often an addiction to those living in modern society. People rely on the miracle caffeinated drink to help through their day to day lives. With such a high demand for coffee, there is no surprise the industry is worth $100 billion dollars worldwide (businessinsider). Coffee is grown all around the world and many countries rely on the beloved bean as their main source of income.

Coffee People drink 225 billion cups of coffee a day. That is more that is more than 30 per person. (Avey) Why do people love coffee so much? Why is it such a valuable commodity? Coffee is a drink that has influenced world economy from the start.

Starbucks has over 8,700 retail locations in North America, Latin America, Europe, the Middle East, the Pacific Rim and is continuing to grow. When coffee is considered Starbucks has developed a worldwide name for itself and has become a huge success. An article in the Seattle Post, describes the alliance that Starbucks is making to ensure that a sustainable supply of high quality of coffee is produce in Latin America. "Starbucks President and CEO Orin Smith said the alliance is partly his company's effort to pass on the "high price" of a cup of coffee to farmers." (Lee, 2004).

• Economic Barriers – Starbuck’s beverages are notably high priced and of extremely high quality. However, countries like China have higher-than usual operating costs and as a result the prices of Starbucks beverages sold there are more than half of what is sold in the United States. Additionally, in nations like India, their domestic beverages can be sold for a smaller percentage of what a Starbucks beverage could be sold for. Starbucks has been my favorite coffee shop for many years of my late teens/adult life. I have a rewards membership with them that after twelve beverage/food items bought I’m rewarded with a temporary reward to get a free beverage or food item.

Distribution is the deciding of who and where goods and services will be sent. Starbucks is a global company with over 18,000 stores in 63 countries.They use sell over 4 billion cups of coffee globally each year. They are also responsible for 70,000 to 80,000 deliveries per week worldwide. Starbucks specifically targets areas where wealthy neighbors and shopping centers are. Since the drinks can be a bit costly a more affluent area would ensure

Robusta beans are largely popular in Asia and they are used in instant coffee and supermarket brands. Vietnam is the 2nd largest coffee producer but 90% of is production is Robusta, rather than Arabica beans typically used in European-style espresso and Starbucks coffee. Compared to Arabica, which has a sweeter and more mellow taste, the taste of Robusta is

There is potential growth for expanding in overseas and that will also Starbucks to be stability in the United States market. Starbucks has seen expansion International has been massive in the recent years. Starbucks has opened 1,744 locations throughout the region such as Japan, Australia, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea and Thailand (https://mena.starbucks.com). In Japan, the Starbucks has 1,000 stores which have the second largest market in the retail sales. The Starbucks has been growing massively internationally.