Nobody downloaded yet

Starbucks - traditional coffee market - Case Study Example

Comments (0) Cite this document
The process of globalization and mergers have a major impact upon the future structure of coffee industry, but many regulatory and ownership barriers remain in force worldwide. Organizational 'type' has been dramatically influenced by the rise of globalization, and in this changing environment Starbucks is seeking to maximize its 'global reach', in the belief that those that offer a global service will be in the strongest competitive position.
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Starbucks - traditional coffee market
Read TextPreview

Extract of sample "Starbucks - traditional coffee market"

Download file to see previous pages These products are marketed through retail stores. It also markets coffee and tea products through other channels of distribution.
Starbucks relies chiefly on an efficient market system and product improvement. The traditional market for coffee is not in maturity one, and today it offers a limited opportunity for high profits, so it sets about developing products, that are both distinctive and could be sold at a premium price. A specialized product range, namely coffee beans necessitated a clear identification of target market. The original mission had made it clear that it was in the relatively unexploited 'adult' sector that Starbucks saw its clearest opportunity for innovation. Starbucks set out to create a range of high-quality products that were distinctive in shape, and especially appealing to people who had acquired a taste for coffee. A wholesome, appetizing and, at same time, slightly exotic taste experience was what Starbucks wanted to offer.
An insight into possible consumer reaction to product and packaging was obtained by arranging for big groups, drawn from the relevant market segments, to meet in a social setting where reactions could be observed and impressions and comments recorded. The favours were often an 'acquired' taste and the products were typically consumed with alcoholic beverages, at the night clubs and restaurants, including fast food.
Starbucks has maintained high-speed growth through continuous optimization of is product mix and constant technological innovation. It has also realized rapid expansion through capital injections. In addition, it had begun to follow a strategy of withdrawing from small markets with limited potential for its core products and to look for markets in countries with a major growth potential for coffee products. The main markets of Starbucks are the United States, Denmark, Finland, Holland, Germany.
If there are few, large competitors in the industry, it is likely that this is due to high entry barriers. Conversely, an industry of many, smaller competitors is likely to be the result of lower entry barriers. The nature of competition for Starbucks differs from other industries. The main competitors of Starbucks are: tea, juice, soft drinks, and alcohol products. Competitive rivalry on both a price and a non-price basis is higher in the industry comprising the more, and smaller, competitors. If the product is mature and the industry is subject to 'shake-out', then competition will be more intense. The main competitors in the industry are Peet's, Caribou Coffee, the Second Cup, Coffee Station, etc.
In general, Starbucks is well-positioned to take on this important global leadership role. It has the global resources and certainly has the technological capability. Clearly, some comapnies in the same industry are more successful than others, lending support to the view that competitive advantage is largely internally developed. Equally, however, there is a danger of ignoring the environment, as customers and their needs, competitors, changes in technology, etc., can play an important role in determining competitive success.
Bear in mind Porter's 5 P's or five "competitive forces" which include: the threat of entry of new competitors (new entrants); the threat of substitutes; the bargaining ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Starbucks - traditional coffee market Case Study”, n.d.)
Starbucks - traditional coffee market Case Study. Retrieved from
(Starbucks - Traditional Coffee Market Case Study)
Starbucks - Traditional Coffee Market Case Study.
“Starbucks - Traditional Coffee Market Case Study”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Starbucks - traditional coffee market

Starbucks Coffee Company Analysis

...? STARBUCKS COFFEE COMPANY ANALYSIS Table of Contents Table of Contents 2 Introduction 3 TASK A – Market Environment Analysis 3 PESTEL Analysis 3 Porter’s Five Forces Analysis 4 Critical Success Factors 5 TASK B – Starbucks Strategic Analysis 7 Strategic Capability 7 Resources and Competencies of Starbucks 7 Value Chain Analysis 8 Value Network Analysis 9 Task C – Strategic Fit Analysis 9 References 11 Appendices 13 Appendix – 1 (PESTEL Analysis) 13 Appendix – 2 (Porter’s Five Forces Analysis) 13 Introduction This report entails about the strategic fit analysis of Starbucks Corporation. The scope of this report is limited to the United States business segment of Starbucks which is one of the three reportable operating segments... of the...
12 Pages(3000 words)Essay

Marketing plan Starbucks Coffee company

...chocolate Channel of Distribution Starbucks' bread and butter distribution route is their stores. They thus have a direct model. But Starbucks definitely has a few other distribution strategies. They include Selling their beans for home-brewing Selling products like bottled frappucino mixes and coffee-energy drinks through traditional grocery stores: Indirect Partnering with grocery stores, malls, mega-marts and other business to offer a Starbucks inside the other business: A different kind of indirect Their market exposure is immense simply because they have storefronts everywhere. They have likely come close to market...
8 Pages(2000 words)Term Paper

Starbucks Coffee Company

...and drink coffee. This is a persistent human behaviour, whether there was Starbucks or not. Some people go to bars, but coffee shops provide a great alternative. The fact that Starbucks took this behaviour and institutionalized it was a strategic success. b. Development of long-term buyer-seller relationships (Griffin, 2011: 498) Starbuck’s aim was ‘to create a relevant, emotional and intimate experience’ in order to build trust with the consumer (Jain, 2009: 3). By creating a unique relationship that cannot be matched by having just another cup of coffee in another coffee shop, customers seek to relive the pleasant...
4 Pages(1000 words)Research Paper

Starbucks Coffee Company

...on further expansion to regions such as Asia where coffee beverages gaining wider acceptance. However, improved management should accompany the expansion. Therefore, Starbucks should consider increasing the management team. This could be through categorizing its stores into regions and creating regional managements. This will ensure that the different regions are managed appropriately. Moreover, enhanced management will ensure that the internal matters affecting the company are addressed. Although the location of Starbucks stores is an important marketing strategy, Starbuck should start focusing on enhancing its advertisement through different media....
6 Pages(1500 words)Essay


...? Starbucks Coffee Starbucks is a business which was established by three friends in 1971 and has grown to become the largest business of its kind on the planet. It is one of the most recognizable brands globally, and this has contributed significantly to its success in the market as well as facilitating its swift expansion all over the world. This company can be found in about sixty-two countries and has more than 20,000 stores all over the world, and in fact, in most of the developed world, it is one of the most recognizable brands, which has made it extremely popular with the consumers in these countries. Starbucks is a company which has throughout its...
5 Pages(1250 words)Essay

Starbucks Coffee Company

...?Starbucks Coffee Company THESIS MENT The study aims to reveal different pertinent facts associated with Starbucks Coffee Company in accordance with its expansion in the Indian retail market. A detailed study of the team of Board of Directors and the top management has been evaluated. The complete scenario related to their expansion process and the challenges faced during the course of internationalization have been determined. Conclusively, a few of the useful strategies have been recommended to the company which it could have implemented in their expansion process. II. STRATEGIC MANAGERS Board of Directors. Starbucks...
5 Pages(1250 words)Essay

Starbucks Coffee Fair Trade and Coffee Productions

... regarding the consequences of the production plants on environment due to physical, aerial, water and land pollution. Fair Trade especially focuses on coffee, tea, beverage, wine, honey, flowers, chocolate and others. Since Starbucks sincerely cares for the comforts, promotion and benefit of its employees, it also strongly believes in the sound health of the users and consumers of its products. It is therefore it has entered into a contract with Fair Trade for the fair price as well as preparation of hygienic coffee products. Starbucks Coffee Company and TransFair USA have formed an innovative alliance in which Starbucks will market Fair Trade Certified coffee in over 2,000 retail locations across the United States and through... the...
3 Pages(750 words)Essay

Starbucks Coffee Company

...Starbucks Coffee Company: A Term Paper As a specialty eatery, Starbucks Coffee has been known in the market as the leading coffeehouse that offers a good ambience and a variety of coffee products. Starbucks has expanded to more than 16, 600 coffee shops in various countries. Each branch offers coffee variants, coffee accessories, roasted beans, teas and food items. Particularly, the store specializes at selling brewed coffee, hot and cold drinks, snacks and other gift able items like mugs (Starbucks, 2010). Its industry basically suits...
2 Pages(500 words)Essay

Starbucks Coffee Marketing Plan

...This paper will delve into the discussion and analysis of a marketing plan of Starbucks Coffee, which is a service-oriented business. Although the description of a service-oriented business appears to be those businesses that deal in services only, its actual definition encompasses firms that focus on the needs of the consumer when delivering a particular product. Service industries include banks, restaurants, the media, and even the retail stores. A marketing plan entails the outline of the marketing operations of a particular company. The marketing plan includes a marketing mix, which includes the four Ps- product, promotion, pricing, and place. This essay will look at the marketing plan for Starbucks Coffee Company. Starbucks... . This is...
7 Pages(1750 words)Research Paper

Coffee market

...Coffee Market Question Producer cartels act as intermediaries between the producer and the consumer. However, unlike other stakeholders such as wholesalers and retailers who add value through storing and supplying the products, their aim is just to make profits. They achieve this aspect by ensuring that the producers and consumers do not meet in order to discuss on the prices of the commodities (Barro 2010). As a result, they are able to dictate the prices of the product in the market. In addition, they are able to control the amount of money that is reaching the producers. Cartels thrive because of lack of information. For instance, in 1980s, many of the major producers of...
4 Pages(1000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Starbucks - traditional coffee market for FREE!

Contact Us