External Analysis of Starbucks 1 Running Head: Starbucks

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External Analysis of Starbucks 1 Running head: STARBUCKS

External Analysis of Starbucks Nancy Vu MGMT 4340 Strategic Management Dr. Uchenna Nwabueze March 6, 2011

External Analysis of Starbucks 2 Table of Contents

1.0.0. Executive Summary ...............................................................................................................4 2.0.0. Company History ...................................................................................................................5 2.1.0. Background ...........................................................................................................................5 2.2.0. Purpose of this study .............................................................................................................6 3.0.0. External Analysis ...................................................................................................................7 3.1.0. General Environmental Analysis ..........................................................................................8 3.1.1. Demographic Segment ..........................................................................................................8 3.1.2. Economic Segment .............................................................................................................10 3.1.3. Political/Legal Segment .......................................................................................................11 3.1.4. Socio-Cultural Segment ......................................................................................................12 3.1.5. Technological Segment .......................................................................................................13 3.1.6. Global Segment ...................................................................................................................14 3.1.7. Summary of General Environment Analysis ......................................................................16 3.1.8. Driving Forces ....................................................................................................................16 3.2.0. Industry Analysis ................................................................................................................19 3.2.1. Description of the Industry .................................................................................................19 3.2.2. Industry Dominant Economic Features ..............................................................................20 3.2.3. Market Size .........................................................................................................................22 3.2.4. Market Growth Rate ...........................................................................................................22 3.2.5. Industry Trends ...................................................................................................................24 3.2.6. Five Forces Analysis ...........................................................................................................26

External Analysis of Starbucks 3 3.2.6.1. Threat of New Entrants ....................................................................................................28 3.2.6.2. Power of Suppliers ...........................................................................................................28 3.2.6.3. Power of Buyers ...............................................................................................................29 3.2.6.4. Power of Substitutes ........................................................................................................29 3.2.6.5. Intensity of Rivalry ..........................................................................................................31 3.2.7. Summary of Industry Analysis ...........................................................................................32 3.3.0. Competition Analysis...
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