Starbucks : A Coffee Shop Power House Essay

Starbucks : A Coffee Shop Power House Essay

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I choose a company called Starbucks because they are a coffee shop power house. They control more of the market than any other coffee place in the US. The consumable products that are made by Starbucks are coffees, teas, iced and hot drinks, smoothies, specialty and customizable drinks, cookies, croissants and so much more. They also have a line of products like reusable cups, mugs, gift cards and packaged coffees and teas. Not only do they have a significant market share, they also have a large market mix. Their main source of business comes from sales of beverages and food. The secondary source of business revenue is the sale of their accessory products mentioned before. Starbucks was founded in Seattle’s Pike Place Market where it opened its first store in 1971. The company went from there, opening more stores, providing their coffee in expensive restaurants and expresso bars. They saw the opportunity with expressos, so the company under Howard Schultz’s supervision began serving brewed coffee and expresso drinks made solely from Starbucks coffee beans. By 1987 Starbucks already had 17 locations, including Chicago and Vancouver, Canada. The company was rapidly expanding, and in 1991 opening their first licensed store at an airport in Seattle’s International Airport. It also became the first private company owned in the US that offers a SOP for employees, even part-time workers. By 1996, Starbucks opened its firsts stores outside North America in Japan and Singapore. In that year the company had expanded to 1015 stores. The following year it opened a location in the Philippines, and the next move was to extend their products to grocery channels across the US. That same year was launched, the CUP fund was establishe...

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... someone has never been to a Starbucks location they don’t know what to expect from that new place, but if that person saw an ad for a competitor shop, he/she would choose the competition. One other threat to Starbucks is the economy itself. If there was to be a crash in the market, people would become more aware of their spending, and probably cut down on expensive coffee drinks like the ones at Starbucks.
I personally recommend Starbucks products as they really are high quality. Their stock is also great to invest in since it is always growing ever since it went public in the 90’s. I did not expect that a coffee shop can have such huge revenues just from sales of drinks. Later in the future I will know what to look for when investing in a company. This research has given me insight into how a company operates and what a company needs to do to be successful.

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