Starbucks Analysis

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Table of Contents

1.0 Executive Summary03
2.0 Company Overview04
2.1 Company Structure 04
2.2 Mission Statement 05
2.3 Financial Analysis06
3.0 Competitive Analysis06
3.1 Second Cup 06
3.2 Timothy's 08
3.3 The Symposium Cafe09
3.4 Tim Hortons10
4.0 Competition in Canada10
4.1 Direct Competition10
4.2 Indirect Competition11
5.0 Starbuck's Current Positioning 13
5.1 Retail Positioning Matrix 13
6.0 Strengths and Weaknesses14
6.1 Strengths 14
6.2 Weaknesses15
7.0 External Factors16
7.1 Political / Legal16
7.2 Socio - Cultural 16
7.3 Economic16
7.4 Demographic17
8.0 Internal Factors17
9.0 Future Outlook18
9.1 Financial Summary 18
9.2 Market Expansion 19
9.3 Product Diversification19
10.0 Strategic Issues19
10.1 Consistency and Quality in Products and Services 19
10.2 Protection of Suppliers and Future Supply 20
10.3 Product Diversification20
10.4 Remaining Innovative 21
10.5 Identifying New and Untapped Markets 21

1.0 Executive Summary

Starbucks Coffee Company was founded in 1971, when it opened its first location in Seattle's Pike Place Market. Starbucks was named after the first mate in Herman Melville's Moby Dick and is the world's leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim.

In Canada, Starbucks is a major player within the specialty coffee market. The top speciality coffee retailers in Canada are: Second Cup, Timothy's Coffee, Starbucks, Symposium Café, and Tim Hortons. Other direct competitors include: Williams Coffee Pub, Cupps, Just Desserts, Country Style, Coffee Time, and Dunkin Donuts. Starbuck's top indirect competition mostly serves smoothies, juices, yogurt drinks, and ice cream related beverages. Their top indirect competition is: Yogen Fruz, Orange Julius, Baskin Robbins, Bubble Tea, and Jugo Juice.

There are several Strengths for the Starbucks Coffee Company. They have a strategic use of their core competencies, they have a diverse coffee line, they have strategic supplier relationships, an excellent customer service strategy, a committement to community, and strategic new venture initiatives. They also have a few weaknesses involved in their business. They have an expensive pricing strategy; they are in an over-saturated market, and changing market trends.

There are a few political/legal issues that are related to Starbucks. These issues include: product definition and labelling, health policies regarding caffeine and coffee, and custom regulations and trade policies. People's values are changing as they would rather pay a premium for quality coffee as opposed to purchasing cheap coffee. The coffee industry can be very unstable as well it is important to study an area before opening a store to make sure that the culture or income of the area can afford speciality coffee.

As important as the external factors are, the internal factors that are involved with the company are also very important. There are a few internal issues involved with Starbucks. They are: global expansion, technology and systems (knowledge-based), employees, and reputation. These issues are extremely important for Starbucks to make sure they handle them properly.

Starbucks is planning on opening a record number of new stores, with the ongoing popularity of its core beverage and food items, and the enhancing of the customer experience through unique offerings in music and consumer products, they are appealing to a broad and diverse global consumer base. Starbucks has set its sights on entering new markets with an aim of achieving a first mover's advantage and building brand loyalty. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its...
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