Starbucks 's Market Strategy For Starbucks Essay

Starbucks 's Market Strategy For Starbucks Essay

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Starbucks Corporation is a coffeehouse chain that began in Seattle in 1971. Since that time, Starbucks operations have grown and there are now over 22,000 retail stores throughout 67 countries. Starbucks strives to offer customers a comfortable, “home-like” environment while remaining conscious of ethical behaviors and social responsibility. It can be argued that Starbucks dominates the coffeehouse market, and much of this may be due to a grand strategy with a focus on growth. Using a growth strategy, Starbucks attempts to increase its market share and revenues by increasing the number of its stores and the number of locations it serves. So far, Starbucks has enjoyed much success with this strategy.
One of the areas in which Starbucks is currently facing a challenge, however, is in its attempt to expand internationally. While Starbucks has seen success in the United States and the Asian-Pacific regions, its sales are lacking in the regions of Europe, Africa and the Middle East. While much of this difficulty can be attributed to the lacking economies of these regions, the fact still remains that Starbucks has an uphill battle when it comes to expanding its chains. (Sun, 2015).
Despite the challenges, Starbucks is a well-known coffeehouse chain; it roasts and sells coffee drinks and snack foods and, in fact, is a leader in this industry. Starbucks has many competitors in this field including eateries, retail stores, and fast food chains. Its primary competitors, however, include Dunkin’ Donuts, McDonald’s, Krispy Kreme and Keurig. (Yahoo! Finance, 2015). Starbucks attempts to get a leg up on these competitors by differentiating their products and offering higher quality drinks and snacks than do many of their competitors....

... middle of paper ...

...uding teas, coffees and juices
o Other environments exist where customers can feel “at home” and socialize
• Bargaining Power of Suppliers: Moderate
o Partnering with Starbucks is desirable due to their status
o There are a limited number of geographic regions from which coffee beans are produced
o Starbucks offers support to farmers through Coffee and Farmer Equity Practices (C.A.F.E.) which offers incentive to partner with Starbucks
• Bargaining Power of Buyers: Moderate
o Switching costs are low
o Many substitute brands and products are offered
o Starbucks offers high quality products and competitive pricing
• Competitive Rivalry: High
o Many competitors offer similar, almost identical products
o Many competitors offer product substitutes
o Starbucks offers high-quality products and differentiation
(Dudovskiy, 2014) (Geereddy, n.d.) (Starbucks Corporation, n.d.)

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