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Starbucks: A Chain Of Coffee Company In The United States

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Starbucks is the name of a chain of coffee company in the United States, was established in 1971, the worlds largest coffee chain, its headquarters is located in the city of Seattle. Its retail products including more than 30 kind of the worlds top coffee beans, handmade EXPRESSO and more coffee, hot and cold drinks, pastries food and commodities such as coffee machine and coffee cup. Starbucks began their international business, very early in the global implementation of three business organization structure: joint venture, licensing, owned proprietary. Starbuckss strategy is more flexible, it according to the market situation and take corresponding cooperation mode. Do not take a stake in, such as Singapore starbucks just pure authorization …show more content…

The threat of potential competitors:
Coffee industry technical content is not high, it into the BARREL is not very big, but also is a relatively independent coffee industry, the specialization of capital, strategic relevance, affective disorders, and government, social constraints, its a better opportunity to exit the BARREL, so no real grasp, new entrants also dare not rashly enter. Even if there are new entrants, starbucks brand advantage is not easy to be replaced, threat of new entrants to starbucks, and it was similar to the environment must be provided and brand identity, therefore new entrants threat to starbucks.
2. Substitution threat:
Coffee substitute threat is fruit juice, tea, etc., but starbucks has now increased product line, including soy milk, beverages, tea, delicate snacks, even custom beverage according to customers requirements. Although the street is filled with selling fruit juice, milk tea shop, but the stores are usually only retail drinks do not provide a seat, and starbucks sells is not only coffee, juice drinks, such as selling an experience is also a kind of atmosphere, so the threat of substitutes. In supermarkets, shops and other retail market substitute threat; But in the chain store market, has no …show more content…

The degree of competition:
• large and balanced competition:
Competition: (1) coffee chain or franchise store (such as Seattle coffee, is coffee, duolun coffee) and gradually enter the market of the coffee shop and independent open coffee shop.
(2) the convenience store competition: convenience stores at tin, aluminum cans packaging coffee brewed coffee, convenient type.
(3) the fast food restaurants sell coffee: Hamburg, KFC fast-food restaurants such as McDonalds, Texas for convenience of coffee machine brewed coffee. (4) designated coffee machine: set up in the airport and other places, for convenience, with a cup of coffee brewed coffee machine, or tin coffee, aluminum foil packing.
Starbucks and Costas most competitive at present, the shop is very close to, not only in such aspects as decorate a style, coffee quality is competitive.
, a chain of coffee shops, and occupy most of the world market, as mainstream brands in the world, starbucks has a competitive advantage.
Coffee industry out of the barrel is not high, in the very period can improve profitability by way of turn off part of branches. Starbucks through diversified way to reduce the risk to exit the

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