Summary On Starbucks

University of the Punjab
Gujranwala Campus
Name:
Saleem Abbas
Roll no.:
BBA18-052
Assignment:
Marketing Management
(Summary on Starbucks)
Submitted to:
Sir Abdullah
Summary of Case-Study-Starbucks
Starbucks Coffee Company is North America's leading roaster and retailer of specialty coffees.
Headquartered in Seattle, WA, Starbucks has 931 retails stores and 75 major airport locations. The
Company's objective is to establish Starbucks as the most recognized and respected brand of coffee
in the world. To achieve this goal, the Company will continue to rapidly expand its retail
operations, grow its mail order and specialty sales operations, and selectively pursue other
opportunities to leverage and grow the Starbucks brand through the introduction of new products
and the development of new distribution channels.
Starbucks was founded by Jerry Baldwin, Gordon Bowker, and Zev Siegel, opening its first store
in 1971 across the street from the historic Pike Place Market in Seattle. As the largest coffeehouse
in the world, Starbucks is seen to be the main representation of the United States' second wave of
coffee culture. Nowadays, many of the major global companies are interested in working with
Starbucks in joint ventures which brings in good news for the company with a hope of further
spreading its roots strongly in the world market, strengthening the aim of the company to become
a leading coffee retailer in the world, which further strengthens the mission to become one of the
leading specialty coffee retailers in the world.
Starbucks faced its own struggles and its new strategy was to refocus on some area that decrease
risk and invest in advance, means to share risk and costs with the help of partnership with foreign
stores. Though CFO Troy stated that they had obstacles in 2007-08 but when they worked with
Seattle’s coffee and products, there was less investments.
Their major or key activities are: coffee beans, seasonal products, complementary products and
pastry. The key resource functions are Starbucks are its functions in the organization which include
financing, human resources, facilities, coffee equipment and accessories and their suppliers.
Increasing the business operations and reducing risks in a business calls for a buyer supplier
relationships.
A SWOT analysis of Starbucks Coffee Company (Starbucks Corporation) shows a strong global
position to address weaknesses and opportunities. The company must innovate and use its
strengths to address threats in the external business environment of the coffee and coffeehouse
industries. Starbucks has high price points that maximize profit margins but reduce the
affordability of its products. This internal strategic factor is a weakness because it limits the
company’s market share, especially in areas with relatively lower disposable incomes.
Starbucks has gone through development stage, introduction stage, and growth stage and finally
its situation is root into maturity stage. There are always strength and weakness in business. Even
a perfect business company, they have a weak point. Starbucks value-chain analysis is an analytical
framework that assists in identifying business activities that can create value and competitive
advantage to the business. The major challenge that Starbucks is dealing with is the current
financial crisis in the world economy forcing them to call closures of many stores around the world.
Another challenge that Starbucks is dealing with is competitors. Every Starbucks store was
designed to highlight all quality aspects to its customers. The images, music, surfaces and the
coffee at the store is based on the customer satisfaction to create a sense of brand loyalty.
To keep away from competition which includes McDonalds and different coffee chains, they may
want to create new price innovation via enhancing the client experience by means of making an
investment in online content and interactivity. Rather than creating extra new products, I suppose
their power lies in their logo and by means of improving the connection to their loyal customers;
they will separate themselves from McDonalds and others.

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