Initiatives like Frappuccino and the Doppio cart are part of this. 3. New Products: Right now, Starbucks is not targeting the younger generation well because the youth are not avid coffee drinkers. For this purpose they could launch a range of new products like flavoured coffee which the youth prefers. Analysis of Options While thinking in terms of collaborating with new speciality partners, we have to take care that the brand does not get diluted.
Social Responsibilities: 1. Health Aspect a. Find better ways to cut down on fat and calories Is Starbucks adding to the growing weight problem with American society? You be the judge. I personally was shocked at the nutritional facts on their products (Figure 1).
Since there has been such a drastic increase in coffee the last decade, there is needed to be more production for it around the world; “Not all coffee beans are created equal through the eyes of sustainability. Organic shade grown coffee on smaller farms is ideal. The reality is that working conditions, pesticide use and many other factors vary greatly in this industry” (Lozanova 122) Since there is such a big market for coffee, there was a lot produced which lead to price going down. This caused a downfall for people who did this for a living and couldn’t compete anymore. This problem has been solved when Starbucks eventually collaborated with Coffee and Farmer Equity Practices (C.A.F.E.
In 2002, revenue increased by a mere 4.6%.There are several flaws and problems in the company that may decrease revenue sales. B. Competition There are six major competitors: Gevalia, Illy Café, Millstone, Peet's Coffee and Tea, Seattle's Best and Starbucks. Starbucks seems to have a strong share in the available market. Starbucks is highly aggressive in the retail market and will have an enormous impact on future sales and profit of Green Mountain Coffee.
EMPLOYEES Employees are wh... ... middle of paper ... .... It will need to understand cultural differences in order to bring customers what they. Starbucks needs to adapt to appropriate employee ethics providing appropriate work hours and conditions. Learning from past mistakes and strategically avoiding the same mistakes occurring, is the main key to global success of a company that is already globally renown. If Starbucks does not resolve the underlying issues, it risks to more outlet closures and less global expansion; therefore only becoming a successful company within its home-market; America.
For their work with ethical sourcing, the major partnership Starbucks has is with Conversation International, an NGO focused on helping Starbucks with C.A.F.E. P... ... middle of paper ... ... No one company can truly be perfect; therefore, it is essential to recognize the mistakes Starbucks has committed. However, in regards to being an ethical company and actively being socially responsible, Starbucks is still a leading competitor in this market. They lack significantly in vital areas of their responsibility, but the reality is that Starbucks has a bountiful of stakeholders that they must please. Unfortunately, the majority of their stakeholders are more concerned with Starbucks’ public relations, so Starbucks stresses their social responsibility work with concerns of the average consumer like the environment and ethical sourcing instead of labor rights.
Starbucks should make significant investments in advertising and marketing initiatives in the face of increased competition in their market. I do not recall ever seeing a commercial or hearing a radio ad for Starbucks or their products. I have heard of Tim Hortons, a coffee chain and a Starbucks competitor, in the Northern areas of the United States. Another factor would be costs of products. With competitors like McDonalds and other coffee shops offering similar products cheaper customers may switch to the lower priced products due to the current economy.
Places like Donkin Doughnuts or McDonalds serve coffee at much lower prices which causes some people to choose the lower price over the quality. Another weakness is the dependency on the suppliers. Any disturbance in the delivery can create an inconvenience for the customers and potentially cause Starbucks to lose some customers. Another dependency weakness is their source of business is solely structured on coffee based products. If one day there was a research liking coffee drinking with medical issues of some sort, that would cause Starbucks to completely run out of business.
Starbucks has many competitors that they must face, but the most recognizable would be McDonalds, Dunkin’ Donuts, and Keurig. With Starbucks dominating the coffee market these days, it’s no surprise that other businesses such as Dunkin’ Donuts have been revamping their products as well as their marketing strategy just to be able to keep up with Starbucks. This isn’t to say that Starbucks is always the constant leader in this market however. “Last year McDonald’s coffee was rated higher than Starbucks’ brew in a Consumer Reports test and now McDonald’s has announced that it will install its own coffee bars with baristas serving cappuccinos, lattes and other coffee beverages in 14,000 U.S. locations” (Morris, K. (2008, January 9). Starbucks faces stiff competition.
The main one, however, is their supply chain operations. This hasn’t caused any problems yet but they mention that handling four business units is becoming challenging. They have yet to come up with a long-term solution for such possible problems. As mention earlier Starbucks has many opportunities of which it can take advantage. These include a joint venture with McDonald’s, where the restaurant giant would supply its customers with Starbucks coffee.