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    Starbucks Danny

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    DanielDanny
    Starbucks is a global coffee company founded in 1971 in Seattle, WA with 182,000 employees across 19,767 stores in 62 countries. Their mission is to inspire and nurture the human spirit through high-quality coffee, tea and other beverages. They have a 38.7% market share in the US, higher than competitors like Dunkin' Brands. Their strengths include their strong brand recognition and quality products. Threats include expensive products and market saturation in developed countries. Their strategy focuses on product differentiation, strategic acquisitions, and international expansion. Their financial performance has been strong with revenue growth and increasing operating margins.

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    Starbucks Danny

    Uploaded by

    DanielDanny
    92 views20 pages
    Starbucks is a global coffee company founded in 1971 in Seattle, WA with 182,000 employees across 19,767 stores in 62 countries. Their mission is to inspire and nurture the human spirit through high-quality coffee, tea and other beverages. They have a 38.7% market share in the US, higher than competitors like Dunkin' Brands. Their strengths include their strong brand recognition and quality products. Threats include expensive products and market saturation in developed countries. Their strategy focuses on product differentiation, strategic acquisitions, and international expansion. Their financial performance has been strong with revenue growth and increasing operating margins.

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    Star bucks case analysis presentation in pdf

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    Starbucks is a global coffee company founded in 1971 in Seattle, WA with 182,000 employees across 19,767 stores in 62 countries. Their mission is to inspire and nurture the human spirit through high-quality coffee, tea and other beverages. They have a 38.7% market share in the US, higher than competitors like Dunkin' Brands. Their strengths include their strong brand recognition and quality products. Threats include expensive products and market saturation in developed countries. Their strategy focuses on product differentiation, strategic acquisitions, and international expansion. Their financial performance has been strong with revenue growth and increasing operating margins.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    92 views20 pages

    Starbucks Danny

    Uploaded by

    DanielDanny
    Starbucks is a global coffee company founded in 1971 in Seattle, WA with 182,000 employees across 19,767 stores in 62 countries. Their mission is to inspire and nurture the human spirit through high-quality coffee, tea and other beverages. They have a 38.7% market share in the US, higher than competitors like Dunkin' Brands. Their strengths include their strong brand recognition and quality products. Threats include expensive products and market saturation in developed countries. Their strategy focuses on product differentiation, strategic acquisitions, and international expansion. Their financial performance has been strong with revenue growth and increasing operating margins.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    Introduction:

    • Founded in 1971 in Seattle, WA,


    • 182,000 employees across 19,767 company
    • licensed stores in 62 countries.
    • Revenues
    • Deal in roasted and handcrafted high-
    quality/premium priced coffees, tea, a
    variety of fresh food items and other
    beverages.
    • channels such as licensed stores, grocery
    and national foodservice accounts.
    Mission:- inspire and nurture the human spirit- one person, one cup
    and one neighbour at a time
    Vision:- Starbucks as the premier purveyor of the finest coffee in the
    world while maintaining uncompromising principles while we grow
    Industry Overview and Analysis:

    Market Share

    38.7 36.7

    24.6

    Star Bucks Dunkin Brand Other Competitiors


    Industry Demand Determinants and Profitability Drivers:
    Porters Five Forces Analysis for Starbucks
    Threat of New Entrants: Moderate
    Threat of Substitutes: High
    Bargaining Power of Buyers:
    Moderate to Low Pressure

    Buyers
    Bargaining Power of Suppliers: Low to Moderate Pressure
    Intensity of Competitive Rivalry: High to Moderate
    Starbucks Core Competence
    SWOT ANALYSIS

    STRENGTH
    1. Strong market position and global Brand recognition
    2. Products of highest quality
    3. Location and aesthetic appeal of its store
    4. Human resource management
    5. Good will among consumers due to social responsibility initiatives
    6. Use of technology and mobile outlets.
    7. Customer base loyalty
    1. Expensive products
    2. Self cannibalization
    through over crowding
    3. Overdependence in the
    united states market.
    4. Negative large corporation
    image
    5. American European coffee
    culture clash with that of
    other countries.
    1. Expansion into emerging markets
    2. Expanding product mix and offerings
    3. Expansion of retail operations
    4. Technological advances.
    5. New distribution channel
    6. Brand extension
    THREAT
    1. Increased competition
    2. Price volatility in the global coffee market
    3. Developed countries market saturation.
    4. Developed countries economy
    5. Changing consumer tastes and lifestyle
    choices
    Key strategy • One of the key strategy that Starbucks followed since its
    inception is that of product differentiation offering
    differentiators such as premium product mix, locations,
    coffee beverages reputation and supreme customer service
    that translated to building a premium valued brand which is
    costly to imitate for competitors.
    • Starbucks followed strategy of strategic alliance and making
    smart acquisitions.
    • Starbucks didn’t follow franchising model and operated
    company oriented stores and joint ventures in international
    markets.
    • Starbucks has made some key acquisitions such as Teavana
    (Tea products), Bay Breads (premium bread products),
    Evolution Fresh (fresh juice products) etc. to use the product
    diversification strategy.
    Starbucks Financial Performance Analysis:
    • Looking at a six year period ratio & growth analysis
    of Starbucks’s financials from 2008 to 2013, we can
    see that the revenue growth of the company has
    experience a drop of -5.9% during the 2008/09
    recession but from then on,

    • Starbucks posted a healthy revenue growth of from


    FY2010 to FY2013 with posting a great growth of
    13.7% in FY2012 and currently posted revenues
    $14.9 billion for FY2013.

    • The operating income margins have increase


    substantially from 4.9% in FY2008 to a high of 15%
    in FY2012.
    Presented by: Saraswati Bishoyi,
    Ch. Bhagyashree,
    Biswajit Biswal &
    Daniel Nayak

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