Starbucks

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COMPANY PROFILE

Starbucks Corporation

REFERENCE CODE: E86AFA79-07E1-4115-AA0C-0016416541FE PUBLICATION DATE: 8 Jun 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

Starbucks Corporation
TABLE OF CONTENTS

TABLE OF CONTENTS
Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4

Starbucks Corporation © MarketLine

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Starbucks Corporation
Company Overview

COMPANY OVERVIEW
Starbucks Corporation (Starbucks or "the company") is a premier roaster, marketer and retailer of specialty coffee. The company operates in over 55 countries across North America, Asia Pacific, the Europe Middle East Africa (EMEA) region, and Latin America. Starbucks is headquartered in Seattle, Washington and employs 149,000 people. The company recorded revenues of $11,700.4 million during the financial year ended October 2011 (FY2011), an increase of 9.3% over FY2010. The increase in net revenues was due to an increase in company-operated retail revenues during the year. The operating profit of the company was $1,728.5 million in FY2011, an increase of 21.8% over FY2010. The net profit was $1,245.7 million in FY2011, an increase of 31.7% over FY2010.

KEY FACTS
Head Office Starbucks Corporation 2401 Utah Avenue South Seattle Washington 98134 USA 1 206 447 1575

Phone Fax Web Address

http://www.starbucks.com/

Revenue / turnover 11,700.4 (USD Mn) Financial Year End Employees NASDAQ Global Select Ticker September 149,000 SBUX

Starbucks Corporation © MarketLine

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Starbucks Corporation
SWOT Analysis

SWOT ANALYSIS
Starbucks is a premier roaster, marketer and retailer of specialty coffee. By investing in enhancing the in-store experience and offering value-added services, the company is building strong customer connect. However, challenges related to declining raw materials in future could affect the company’s product quality, production costs and overall profit margins in future. Strengths Building strong customer connect through value-added services Leveraging technology to build a robust distribution channel strategy Consistently strong financial and operating performance Opportunities Entry into the health and wellness space Growing presence in key Asian markets Expanding presence in the growing single-serve coffee market in the US The growing office coffee marketplace Weaknesses Weakening potential in the US Product recalls adversely affect brand image

Threats Lower supply of raw materials in the near future and rising prices may increase company’s costs Introduction of Verismo machines could impact the company’s in-store traffic and additional food sales

Strengths

Building strong customer connect through value-added services Starbucks operates in the highly competitive foodservice retail space that demands consistent delivery of quality service to either retain existing customers or to attract new ones. Apart from selling its world-renowned coffee blends in a variety of flavors, the company is focused on providing a coffee-drinking experience to its in-store customers. In the past several years, the company has been focusing on meeting its customers’ unstated demands by offering various value-added services such as, entertainment on premises. Starbucks offers free, instant and unlimited Wi-Fi connectivity at all its company-owned stores across the US and Canada. Customers, who come for a drink or a snack, are encouraged to spend more time inside the store through free access to internet and the Starbucks Digital Network – a news and entertainment web portal offered in association with Yahoo.com. The Starbucks Digital...
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