Situational Analysis Of Starbucks

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Starbucks is the world’s leading retailer of specialty coffee beverages and accompanying confectionery items. Starbucks was established in 1971 in Seattle by Jerry Baldwin, Zev Siegal and Gordon Bowker. Currently, Starbucks has over 21,000 stores and operates in more than 63 countries. The company’s mission is to provide an opportunity for people to enjoy a good cup of copy and engage in a good conversation. The following situational analysis provides a detailed look at the current business situation of Starbucks Corporation by providing an in-depth qualitative analysis of the company’s current product, market, opportunities, and challenges. Current products Starbucks offers specialty and high quality coffee at premium market prices. Starbucks’ …show more content…

Beverages include non-coffee blended drinks like Tazo tea, Viviano Smoothies and Ethos water. Starbucks coffee products come in different forms that include; fresh brewed coffee, hot and iced espresso beverages. Starbucks coffee comes in the form of dark roast, blonde roast, medium roast and flavored roast. The company’s confectionary portfolio consists of baked pastries, sandwiches, premium ice cream, oatmeal yoghurt, fruit cups and salads. Coffee making equipment include: coffee grinders, coffee brewers and espresso machines. The newest product portfolio of Starbucks includes music, books, packaged goods and gift items. The best performing product category is the beverage group while the single-serve category has recorded the highest growth in the past few years. The single-serve packaged category has helped to offset the decreasing coffee sales and rising costs of coffee beans experienced in the beverage industry in recent years. The recent trends in the coffee industry have made coffee making machines rather obsolete and …show more content…

Starbucks has an established brand and standard that allows its products to fetch premium market prices which customers are willing to pay. However, this has come at a price for the company. Starbucks has various competitors that include: McDonalds, Caribou Coffee, Dunkin Donuts, Costa, Coffee Nero, among other companies. There are also smaller countless coffee retailers that Starbucks competes with. Although these companies sell a similar product which is coffee, there is a lot of product differentiation. Each company is different in terms of what they offer their customers. Starbucks specializes in specialty coffee and sells its products at high market prices compared to other retailers in the market. The competition can be stiff and Starbucks has been a casualty to the existing industry rivalry. For instance, while Harrison & Hoole successfully entered the market with the support of Tesco, Starbucks exited the Australian market for failing to gain a considerable market share. Current

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