GOING GLOBAL FAST
Group One Members
1. 2. 3. 4. 5. 6. Company Profile Company Performance SWOT & Industry PEST Analysis Profile of USA, Japan, and China Operations Conclusion Q&A
Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide. It offers brewed coffees, Italian-style espresso beverages, cold blended beverages, various food items, and a selection of premium teas, as well as beveragerelated merchandise and equipment, through its retail stores. In addition, Starbucks Corporation produces and sells ready-to-drink beverages, which include bottled beverages, espresso drinks, chilled cup coffees, and ice creams. Its brand portfolio includes Starbucks, Seattles Best Coffee, Tazo, Frappuccino, Starbucks DoubleShot, Starbucks Discoveries, Starbucks super-premium Tazo Tea, and Starbucks superpremium. As of September 27, 2009, the company operated 8,800 retail stores. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington.
5 year stock performance
• Well-recognized Brand Having made public since 1982, The Starbucks coffee brand is the most well recognized coffee brand in the world. With its strong brand awareness from its consumer, Starbucks coffee even has its own loyal consumers. Branches Everywhere The expansion of so-called blanketing the area with stores proven to be succeeded and has made this coffee shop ubiquitous and has increased the level of satisfaction of its consumers.
• Attractive, Comfortable and Entertaining Stores Well-equipped with comfortable chairs, wireless internet connections, and even selection of music, make Starbucks as one of the coziest hangout place for having a discussion with friends, searching for inspiration a and even rendezvous spot. Innovative Ways to Attract Consumers Innovations on its products including Technology Innovations, ex: Starbucks Express, new varieties of coffee and pastries each month and also have a special service such as the ability to burn your own music CD from the sample online music you hear in the counter.
• Expensive Price Being positioned as a premium coffee brand, an average price of a cup of Starbucks coffee is considerably expensive. $3 for a cup of coffee will make its pricesensitive buyer will look for other brand that is less cheaper but offer the same value (ex: Coffee Bean & Tea Leaf, 85 degree). High Employee Turnover Nowadays, working in Starbucks has not been the greatest experience ever again. Since the pay of the workers doesn’t come close with the daily workload they have to handle. This thing will also affecting on Starbucks reputation. With their premium brand positioning, they supposed to have delivered its employee a better salary.
Strong brand image in customer mind about coffeeshop Fastest global brand – Best Global Brand ( 90th place in 100 Global Brand Rank 2009 )
Operates 1,200 stores build overseas – plenty room to grow the business Opening stores in Vienna, Zurich, Madrid, Berlin, Jakarta, Mexico, Puerto Rico - new opportunities to expanding to other countries and new target market
Target of terrorism, as a symbol of free-market capitalism. Self cannibalism – because so many stores close together Experience saturated and mature market
Growing competition in rival coffee chain. Demographic shift – baby boomer ’90 to future consumers
INDUSTRY PEST ANALYSIS
Industry PEST Analysis
• Political Influences
– Relationships between coffee producing nations and US – State & Local government controls
• Economic Influences
– Constant demand for food and beverages – Changes in disposable income could influence purchase levels
• Social Influences
– Consumer preferences could shift from coffee to other beverages