Starbucks was established in Seattle, USA in 1971 and today, there are 17,009 stores in 50 countries. The present CEO of Starbucks, Howard Schultz joined this company in 1982, however, he left it for a short time and started own Italian style coffeehouses. After that, he returned in 1987 for purchasing Starbucks with the help of local investors.
B2C: Business to Customers
Starbucks sell coffee, handcraft beverage, merchandises, fresh food, consumer product and brand portfolio, however, we focus on coffee in this paper. The number of employees is 142,000 in the world and 111,000 in US. Sales in 2010 was US$10,71billion in the world and US$7,56billion in US. As you can see from this number, US is the biggest market for Starbucks and it accounts for approximately 70% of sales.
Firm’s global scope
In US, there are more than 11,000 shops. Starbucks are in 50 countries such as UK, China, Mexico, NZ, Russia, Brazil etc. Basic menu of beverage is 6 types which are Brewed coffee, Chocolate Beverages, Espresso Beverages, Frappuccino Blended Beverages, Kid’s Drinks and Teas, however, the rage of menu depends on the countries. That is why there is wide rage of menu in the world. For example, tastes of Sakura in Japan.
The local competitor for Starbucks is Cuppy’s coffee which was established in Florida, USA and there are more than 60 franchised locations nationwide. This company focus on gourmet ingredients, however it sets average price of coffees less than 75 cents compared with Starbucks. It means, Cuppy’s coffees are high quality and affordable price. Those are big advantages for this company. Cuppy’s customers are people like to drink high quality coffees with affordable price. The global competitor is McDonald’s. It is we-known the leading global foodservice retailer and there are more than 32,000 local restaurants in 117 countries. This company’s main strength is convenience which stores are everywhere....