Economic Risk and Appropriate Ways to Mitigate Starbucks Coffee is not void risk when operating in the current economic and political state, which is volatile. “Create jobs for the USA was specifically designed to give Americans a simple, specific way to take action and be part of a solution to our national job emergency. Our initial process tells us that we can continue to grow this public-private initiative and that the emotional appeal of Americans helping Americans resonates, especially when our fellow citizens know that their participation contributes to their own communities in sustainable ways.” Howard Schultz Within the domestic region, Starbucks faces risk such as market saturation, losing customers, and marketing to Generation X. Generation X is considered the younger generation. Starbucks had 17 retail shops located in Seattle when they opened 15 years ago. Starbucks has since they have expanded in more than 40 countries. At one point, Starbucks had a coffee shop for every 9,400 people within Seattle. Market saturation has been a concern for investors and also a concern for their employees wanting advancement and growth within the company. Losing customers is one major risk for Starbucks and their future growth. Some of the market share is concerned about the products offered by Starbucks, leaving few options for consumers. Global expansion is a goal, and one of their core goals, but because Starbucks mostly has retail shops with local partners, Starbucks risk is making less capital in global markets. In 2008, America’s economic meltdown forced many companies to downsize, including Starbucks to close numerous retail outlets. Even with fewer stores, the concern for market saturation still exists. The focus now is on strengthening their basis with the United States by…
succeed in its business.
1. Starbucks is a worldwide coffee retailer. The company sells coffee from its own network of company owned coffee shops, other retail stores licensed to sell Starbucks, and a very limited number of franchised locations. The coffee industry is a massive worldwide business. It is worth $100 billion and coffee is the second most valuable commodity in the world. Coffee beans are grown in over 50 countries, and over 67% of the world’s coffee is produced by the American continents…
March 2, 2013
As the world’s number one specialty coffee retailer, Starbucks first opened in 1971 with a single store in Seattle’s Pike Place Market. As of July 1, 2012, they had 17,651 retail stores in 60 countries.
This report will look at Starbucks organizational goals; current and past business strategies; relevant functional strategy and how they link to the effectiveness of their business/competitive strategy; various…
Starbucks Corporation gradually became the leader in specialty coffee provider since Howard Schultz purchased the Starbucks name with his I1 Giornale in 1988 (Kachra, 1998). Despite the successful performance based on providing high quality roasted coffee beans, implementing a unique marketing strategy of add ‘experience’ as a premium and differentiation, and cooperating with companies such as Pepsi, Starbucks in 1997 are facing issues whether the company was…
Starbucks has addressed the threat of substitutes in regards to the stitching costs on many fronts to mitigate the potential of loss of its customer base. Consider that a majority of coffee drinkers will not substitute away from coffee or coffee related beverages such as espresso or blended drinks for substitutes such as energy drinks or soda. This focuses the switching cost of substitutes to tea products, home brewing, and comparative alternative stores.
The most direct non-coffee substitute…
Thirty years ago, Starbucks was a single store in Seattle’s Pike Place Market selling premium-roasted coffee. Today it is a global roaster and retailer of coffee with some 17,000 stores, 40% of which are in 50 countries outside the United States. In 1995, with 700 stores across the US, Starbucks began exploring foreign opportunities. The first target market was Japan. The potential for coffee sales in Japan is significant. The Japanese economy is the third to the United States…
Starbucks – Marketing Audit
Table of Contents
Starbucks Marketing Audit 3
Executive Summary 3
Environmental Aspects 4
The growth rate of the US has been between 1.10% and .90% from 1999-2003. The market demands are constantly increasing. Their unique approach to expansion goes beyond the traditionally accepted methods. Starbucks has broken the rules and set a new standard amongst its competitors. Starbucks primarily chooses…
success of a core business goal or objective.
2. Critical to the development or maintenance of a core competency or other source of competitive advantage.
3. Blocks a competitive threat.
4. Creates or maintains strategic choices for the firm.
5. Mitigates a significant risk to the business.
The essential issue when developing a strategic alliance is to understand which of these criteria the other party views as strategic. If
either partner misunderstands the other’s expectation of the alliance, it…
perspective there really isn’t much wrong. They do have a highly concentrated profit stream as evidenced by the large percentage of money that is brought in by TEL sales, which isn’t necessarily a problem (for example, Starbucks probably makes a much higher percent of their profit from coffee sales, but that is perfectly fine for them). The reason it is listed as a weakness in the case of Great Lakes is because of the volatility surrounding the TEL industry; the possibility that it could be banned from…
impractical, such as in an old building. A wireless LAN
also permits users of mobile devices such as handheld or
laptop computers to connect to the LAN (and thus the
Internet) whenever they are within range of a wireless
access point (WAP), such as in a coffee shop or an airport
terminal. A wireless LAN is less secure than a wired LAN
and more susceptible to interference, which might increase
the error rate and force the wireless LAN to operate at a
slower data rate. Most wireless LANs operate in the…