Success of Starbucks

Topics: Coffee, Starbucks, Coffeehouse Pages: 11 (3724 words) Published: April 12, 2013
Key Success of STARBUCKS

Introuction of Starbucks

Nowadays, most of the industries around us are competitive in every minute. They are trying to stand out, hand over its competitor with its competitive advantages. One of the most competitive industries in the world is the food and beverages companies. Being one of the shopping and tourist capitals in the world, Hong Kong has many competing companies in these industries. The coffee market in Hong Kong has been markedly flourishing in the past decades leading to the increase in the number of coffee shops in the country. The coffee drinking culture in Hong Kong has been one of the most eclectic from ‘gourmet’ to the local blends served in coffee houses. In Hong Kong, there are 2 competing coffee shops: Starbucks and Pacific coffee. It can be said that this type of industries can be considered to have a strong competition in the market. In this paper, I would attempt to identify how Starbucks competes through its marketing strategies and business strategies. And how Starbucks stands out with its resources and capabilities. Moreover, we’ll also look into the profitability in the recent years.

Introduction of Starbucks
Starbucks Coffee is known as one of the fastest growing brands in the international level. In 2000, it opened its first store in Hong Kong at launched at Central's Exchange Square. The second store was opened at Hysan Avenue in Causeway Bay (, 2002). At the end of 2000, Starbucks had already nine coffee houses in Hong Kong and continue to grow in the following years. By the end of 2001, there are already 24 branches and 60 by the end of 2005. As of today, the company has opened close to 65 branches in the country and are now located at shopping and entertainment, commercials and residential sites across the countries. The operations of the said coffee shops were instigated by the joint venture of Starbucks Coffee Company International and Maxi’s Caterers Ltd under the name Coffee Concepts (HK) Ltd. .

Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, 164 in Thailand and 3 in India.

Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety of beers, wines, and small bites after 4pm. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.

As of November 16, 2012, Starbucks is present in 61 countries. In October 2012, Starbucks announced plans to open 1,000 stores in the United States in the next five years. The same month, the largest Starbucks in the US opened at the University of Alabama's Ferguson Center.

The firm was named by Fortune magazine as one of the top 100 companies to work for in 2013, listing reasons that employees of the company were offered stock rewards for working 20 hours/week, and that "There is potential for anyone to move up the ladder.” I can definitely say that, It’s not unusual to see people coming to Starbucks to chat, meet up or even work. They are a neighborhood gathering place, a part of the daily routine.

However, its competitor, Pacific coffee, has around 110 branches in Hong Kong, as well as branches in Beijing, Shanghai, Macau, Foshan, Shenzhen, Guangzhou, Hangzhou, Nanjing, Shenyang, Suzhou, Xi'an, Singapore, and Malaysia. Obviously, the number shows that its operation scale and the number of branches...
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