Price Analyst in Marketing
Q1,
According to Starbucks performance in global market during the last a few years, and the current global tough economic situation, it suggests that Starbucks should really focus on how to maintain the current exist stores more sustainable in profitability and environment friendly instead of rapidly increasing growth as to reach 40000 stores target. First, according to the case of “Starbucks-A paragon of Growth and Employee Benefits Faces Storm Clouds “ study, we found Starbucks has closed almost 7100 stores in USA market because of economic clash. It also mentioned that the raising of strong competition of MCD, who provide much cheaper price of coffee. The heavy pricing completion from competitor and slowing economic drives Starbucks’ market fluctuation. Moreover, the article also stated that since financial crisis, it has result Starbucks’s market stock price dropped 50% of its value in 2008, which is not a positive sign of a company. Nevertheless, it does have better performance in some Asian countries, especially in china; it has experience rapid expansion even though during the world economic downturn, Starbuck Case Study reports. From all these facts, we conclude that Starbucks should (1) lower the cost of operation fee to provide a more competitive price of coffee to gain and maintain the market;(2) start to prepare and adjust a strategy to maintain domestic market and global more sustainable and avoid closing more stores to lose revenue and company’s resources ; (3) if the company looking for expansion, Starbucks should reposition its focus to Asian developing countries because these countries relative have high potential to grow than developed nationals. I believe Starbuck should follow above three primary goals to maintain company currently owned number of stores to keep long term sustainability for the company instead of reach the goal of opening 40000 stores.
Q,(1)
What market strategies has worked for Starbuck and what
According to Starbucks performance in global market during the last a few years, and the current global tough economic situation, it suggests that Starbucks should really focus on how to maintain the current exist stores more sustainable in profitability and environment friendly instead of rapidly increasing growth as to reach 40000 stores target. First, according to the case of “Starbucks-A paragon of Growth and Employee Benefits Faces Storm Clouds “ study, we found Starbucks has closed almost 7100 stores in USA market because of economic clash. It also mentioned that the raising of strong competition of MCD, who provide much cheaper price of coffee. The heavy pricing completion from competitor and slowing economic drives Starbucks’ market fluctuation. Moreover, the article also stated that since financial crisis, it has result Starbucks’s market stock price dropped 50% of its value in 2008, which is not a positive sign of a company. Nevertheless, it does have better performance in some Asian countries, especially in china; it has experience rapid expansion even though during the world economic downturn, Starbuck Case Study reports. From all these facts, we conclude that Starbucks should (1) lower the cost of operation fee to provide a more competitive price of coffee to gain and maintain the market;(2) start to prepare and adjust a strategy to maintain domestic market and global more sustainable and avoid closing more stores to lose revenue and company’s resources ; (3) if the company looking for expansion, Starbucks should reposition its focus to Asian developing countries because these countries relative have high potential to grow than developed nationals. I believe Starbuck should follow above three primary goals to maintain company currently owned number of stores to keep long term sustainability for the company instead of reach the goal of opening 40000 stores.
Q,(1)
What market strategies has worked for Starbuck and what