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Strategic Analysis: STARBUCKS - Essay Example

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This report provides a strategic fit analysis of Starbucks, the multi-national coffee house and coffee company based in Seattle, Washington. You'll get to know about specific activities contributing to strategic successes, a model of value network functions relevant for Starbucks and so on…
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Strategic Analysis: STARBUCKS
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Download file to see previous pages .......................... Figure 3: A model of value network functions relevant for Starbucks...... Table 3: Financial analysis.............................................................................. Figure 4: Ansoff Matrix and Starbucks position........................................... Strategic Analysis: Starbucks 1. Introduction This report provides a strategic fit analysis of Starbucks, the multi-national coffee house and coffee company based in Seattle, Washington. Currently, Starbucks holds the largest market share in the coffeehouse market, maintaining over 13,000 coffee houses and cafes in the United States. Starbucks has evolved from its earliest business model of providing only premium coffee products in-store to a well-diversified, innovative organisation that now consists of a product line that includes a variety of hot and cold beverages, hot and cold sandwich products, coffee beans, Starbucks-branded ice cream, and merchandising of Starbucks-branded mugs and coffee cups. Diversification of product and service has opened new market opportunities for the company, expanded its revenue-earning capacity, and has served to position the company under premiumization models that justify higher-than-industry-average pricing structures. Brand loyalty was established with Starbucks in key target markets long ago, giving opportunities to use existing brand equity to achieve better marketing-based results. The United States market is a saturated and mature market with many competitors, including McDonald’s, Nestle and Dunkin Donuts. Consumers in the United States have ample opportunities for substitutes, with many competitors offering lower prices to penetrate new markets and, thus, attempting to undercut Starbucks under price...
This report provides a strategic fit analysis of Starbucks, the multi-national coffee house and coffee company based in Seattle, Washington. Currently, Starbucks holds the largest market share in the coffeehouse market, maintaining over 13,000 coffee houses and cafes in the United States. Starbucks has evolved from its earliest business model of providing only premium coffee products in-store to a well-diversified, innovative organisation that now consists of a product line that includes a variety of hot and cold beverages, hot and cold sandwich products, coffee beans, Starbucks-branded ice cream, and merchandising of Starbucks-branded mugs and coffee cups. Diversification of product and service has opened new market opportunities for the company, expanded its revenue-earning capacity, and has served to position the company under premiumization models that justify higher-than-industry-average pricing structures. Brand loyalty was established with Starbucks in key target markets long ago, giving opportunities to use existing brand equity to achieve better marketing-based results.
The United States market is a saturated and mature market with many competitors, including McDonald’s, Nestle and Dunkin Donuts. Consumers in the United States have ample opportunities for substitutes, with many competitors offering lower prices to penetrate new markets and, thus, attempting to undercut Starbucks under price positioning in marketing. Price sensitive consumers affected by lingering economic impacts from the 2008 to 2010 recession are significant considerations in this mature market environment when competitors attempt to seize market share from Starbucks. ...Download file to see next pagesRead More
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