ipl-logo

Starbucks Industry Analysis Essay

886 Words4 Pages
bulb-icon

Recommended: Starbucks strategic position

Industry Analysis A. Basic description of the industry. 1. In Seattle in 1971 Starbucks was founded as an American corporation. 2. Starbucks is a retailer, marketer, and premium roaster company. They are known for their specialty coffee around the world. 3. Starbucks has approximately 182,000 employees in 62 countries around the world. 4. The geographic location of Starbucks is worldwide. 5. Revenue for Starbucks is $16.45 billion. B. Factors that influence demand. 1. Starbucks makes up much of the market share, and this gives them a lot of market power in determining the industry trends. 2. The industry has it rough when we are discussing demand. Starbucks demand is driven by the attitudes of people at the time according to how they are …show more content…

Since the size of Starbucks to so large they have the power to take full advantage of suppliers. This makes the power of suppliers low. ii. The size of Starbucks also helps keep the power of the suppliers very low because they are a major part of their suppliers company. They buy so much from them that they would never want to lose the business that they have with Starbucks. Starbucks keeps their business going so their power remains low. 5. Intensity of Competitive Rivalry- High i. There is no cost at all to the consumer for switching to a different coffeehouse to purchase their coffee in the morning. This shows that competitive rivalry in the industry is high. ii. Starbucks has done very well to keep a slight competitive advantage over other coffeehouses. They have continued to change and grow their product line and they also have the most premium coffee that there is. Also they have kept a very friendly staff across the board so that helps people want to come to that atmosphere opposed to somewhere else. D. Opportunities in the industry. 1. Starbucks could extend the supplier network. They do not grow their own coffee beans therefore, they have to buy them from different suppliers. There are many factors that go into getting good beans from different countries. The need to extend the supplier network to ensure the supplies necessary for

Show More
Related

How Does Walgreens Affect The Retail Pharmaceutical Industry?

1598 Words | 7 Pages

“In Porter’s five forces, supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products.” (Wilkinson). When it comes to the drug store industry, pharmaceutical companies dictate the prices causing there to be a high switching costs for Walgreens. According to Bell, 55.7 percent of suppliers feel they are not in an equally beneficial relationship, this is indicative of retail pharmacy buying power. (Bells).

Read More

Research Paper Mod/440 Week 3 Starbucks Business Development Plan

535 Words | 3 Pages

Starbucks Latarsha Reid MOD/440 June 7,2017 Kameke Payne Starbucks Starbucks is one the largest successful business running in the United States. However, the business still faces issues in the process of development of the business under the effect of the economic recession.

Read More

Pantry Case Study Summary

3865 Words | 16 Pages

Their prices on petroleum allow them to be a substantial substitute in the industry because of the low switching costs. Consumers are also able to go to other quick service restaurants that either stand alone or operate in another convenient store. Bargaining Power of Suppliers The bargaining power of suppliers is high because the industry is heavily controlled and the products that are needed are imperative to the company’s operations.

Read More

Naics Code: Except Frozen Manufacturing Industry

703 Words | 3 Pages

The Coffee Creamer Production industry (OD4978) has grown in the past five years, boosted in part by rising coffee consumption. Although many companies and individuals temporarily downgraded their coffee creamer by buying a private-label product or using less of it daily, demand for coffee creamer bounced back quickly because it is a relatively low-cost product. Additionally, the price of coffee creamer rose during the past five years as companies marked up products to account for rising input costs, especially the price of milk. Higher prices also offset the slight decline in coffee consumption. As a result, industry revenue is estimated to grow at a 2.4% annualized rate to $1.8 billion during the five years to 2016, including a 2.8% increase in 2016 alone (McCormack, 2016).

Read More

Starbucks And Tim Hortons Case Study

784 Words | 4 Pages

Starbucks and Tim Hortons Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.

Read More

Howard Schultz Essay

155 Words | 1 Pages

Back in 1971, the store was opened in Seattle, Washington that sold just coffee beans and coffee making equipment. In 1982, Howard Schultz was hired as a director of retail operations and marketing. Starbucks begins to provide coffee to the fine restaurants and espresso bars. In 1983, Schultz travelled to Italy and get impressed with the popularity of espresso bars in Milan. He wanted to introduce the espresso bars in United States as well.

Read More

Rhetorical Analysis On Starbucks

239 Words | 1 Pages

In his blog post, Joe’s Rhetoric Finding Authenticity at Starbucks, Greg Dickinson introduces the materiality of rhetoric by analyzing a Starbucks coffee shop. Many people drink Starbucks coffee in their daily lives. Dickinson argues that Starbucks uses green color in its logo and shapes and materials related to nature to influence its consumers to buy coffee. While Starbucks emphasize its naturalness, many consumers do not notice the rhetoric in Starbucks. Creating the naturalness through the sight, sound, smell, and materials, people are influenced to drink Starbucks coffee.

Read More

Macroeconomic Factors Affecting Starbucks

707 Words | 3 Pages

Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.

Read More

Porter's Five Forces Analysis Apple

908 Words | 4 Pages

Bargaining power of suppliers – Moderate. Depending on where along the supply chain a supplier is, his bargaining power varies from low to moderate. There are many suppliers for consumer electronics industry, therefore companies tend to be more elastic. However, if the supplier is unique and provides highly differentiated materials, like Intel supplies its processors, there might be moderate power. In the case of Apple, they contracted with competitors like Samsung and Toshiba that supplied them with components, thus cutting the costs and concentrating on what they do best.

Read More

Starbucks Target Audience Analysis

1087 Words | 5 Pages

Customers tend to stay for longer periods at Starbucks as free Wi-Fi is provided, making Starbucks outlets a prime location for doing work away from the office or home. With its

Read More

Ethical Issues In Starbucks

831 Words | 4 Pages

It is the long-term self-interest of Starbucks. Conclusion In conclusion, Starbucks only concern and goal is to generate profit. Thus, to achieve their goal, Starbucks is selfishly putting the small coffee retailers out of business to gain more profit and disregarding the effect that it could cause to the various stakeholders.

Read More

Porter's Five Forces Analysis: Calm Coffee

707 Words | 3 Pages

In this section, we use the Porter’s 5 forces model to evaluate the attraction of the industry when focus on the following 5 forces, Calm coffee faces the impact of the 5 forces, as outlined in Porter’s model. These five forces have different intensity or advantage based on Calm coffee position, as follows: This part of the 5 Forces analysis shows that competition is one of the most important of Calm Coffee need to concern. The businesses have many competitors, which have different sizes, specialties and strategies. For example, Calm faces the competitive force of McDonald’s and Starbucks, as well as other specialty coffeehouse. The strong force of competition is also because of the low switching cost, which means that the customers can easy

Read More

Starbucks Value Proposition

1586 Words | 7 Pages

Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.

Read More

Starbucks Ethical Sourcing Case Study

945 Words | 4 Pages

Ultimately, Starbucks innovation aimed to achieve a

Read More

Starbucks Differentiation Strategy

1607 Words | 7 Pages

If a differentiation strategy is successfully implemented the firm will be able to do one of the following: command a premium price for its products, increase unit sales, and/or gain buyer loyalty to its brand. Starbucks has some of the highest prices for the type of products they offer and people tend to be extremely loyal to whatever coffee they are used to purchasing, because they trust the

Read More

More about Starbucks Industry Analysis Essay

Related Topics

Open Document