Starbucks Coffee Company was founded in Seattle in 1971, Pike Place Market by Jerry Baldwin, Gordon Bowker and Zev Siegl, with a vision to educate the consumers about fine coffees. Starbucks began to expand when Howard Schults took it over in 1987. Since then, Starbucks grew from a small, regional business into the undisputed leader in the specialty coffee industry, and privileged to connect with millions of customer every day with 18,000 retail in 60 countries
2. STARBUCKS MACRO ENVIRONMENTAL & MICRO ENVIRONMENTAL FORCES
2.1 Starbucks macro environmental force (Cultural factor)
2.1.1 Singapore community structure
Singapore is known for its diversity, made up of various ethnic groups: Chinese, Malays and Indians. The most practiced religions are Buddhism, Islam, Christianity and Hinduism. The main languages are Malay, Chinese (Mandarin), Tamil and English. English is the language of administration, while Malay is the national language. With a moderately high cost of living, Singaporeans are able to indulge in luxury goods. Much of Singapore’s entertainment is influenced by Western culture. According to Singaporean social commentator Francis Yim, “Coffeehouses are a sign that Singaporeans have achieved the status of a developed nation and we are breaking new ground in the area of becoming a cultured society.” In the past during the construction of Singapore, Singaporeans did not have the time to enjoy their cup of Java. The first Starbucks coffee outlet in Singapore opened on December 14, 1996, in Liat Towers, with the help of BonStar Pte. Ltd. Bonvests is an ideal partner for several reasons. Bonvests has acquired expertise in running food businesses, like the local Burger King chain. They also know and understand the local consumer market, government regulations, and the local real estate market.
2.1.2 Singapore influence on Starbucks Marketing
Starbucks chose Singapore for its entry in the Southeast Asian market because of the highly “westernized” ideas and lifestyles it had adopted. Some have described Starbucks as being another American icon, like McDonald’s. Slowly, but surely, gourmet coffee bars have been penetrating into the food scene in Singapore. It is estimated that Singaporeans drink more than 10,000 gourmet cups a day. In addition, the market in Singapore has tremendous growth potential. In addition, the market in Singapore has tremendous growth potential. According to Bruce Rolph, head of research at Saloman Brothers Singapore Pte. Ltd., “People should increasingly focus on Singapore not as a mature market with low earnings and growth potential, but as a uniquely positioned beachhead to get leverage over what’s happening in Asia.” Finally, the Singaporean market still has no clear leader in the specialty coffee industry. This meant that Starbucks had a good chance to become one of the top contenders in this market, and gradually Starbucks has become the biggest chain of gourmet coffee outlets in Singapore.
Starbucks has also capitalized on big internet savvy culture in Singapore. Singapore has one of the highest tablets and smartphones users, so Starbucks uses online marketing aggressively to reach out to its consumers. The Starbucks app is one of the more powerful features in their marketing arsenal. Once the app is downloaded one can use the phone to pay for products, reload funds on a card, and find stores.
2.1.3 Commitment to the community and it's influence on the brand image
Despite becoming extremely profitable, Starbucks has not lost sight of being socially responsible. Starbucks has contributed to local communities, by encouraging their partners to become responsible neighbors and active participants in the places where they live, work and play. It is an important part of Starbucks company’s culture and values. For example, on 14th July 2012, Starbucks did an event – ‘A Very Special Walk’ (Pathlight School’s annual fund raising event...
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