Starbucks
Strategic Analysis Of Starbucks Corporation
Strategic Analysis Of Starbucks Corporation
By: Nithin Geereddy (ID: 80842082)
Strategic Analysis Of Starbucks Corporation
1) Introduction:
Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier roaster, marketer and retailer of specialty coffee around world. Starbucks has about 182,000 employees across 19,767 company operated & licensed stores in 62 countries. Their product mix includes roasted and handcrafted highquality/premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts.1 Starbucks also markets its products mix with other brand names within its portfolio of companies, which include Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks
Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks had total revenue of $14.89 billion as of
September 29th, 2013.2
2) External Environment Of The Retail Market For Coffee & Snacks:
2.1) Industry Overview and Analysis:
Starbucks primarily operates and competes in the retail coffee and snacks store industry. This industry experienced a major slowdown in 2009 due to the economic crisis and changing consumer tastes, with the industry revenue in the US declining 6.6% to $25.9 billion. Before this, the industry had a decade of growth consistent. Due to the economic slump, consumers spent less on luxuries like eating out, choosing to purchase
3
low-price items instead of high-priced coffee drinks due to shrinking budgets. The industry grew at a low annualized average growth rate of 0.9% from 2008 till 2013 with current industry revenues at $29 billion in the
US. The industry is now forecasted to grow at an annualized rate of 3.9% over the next five years, with a potential to reach $35.1 billion revenues in the
Strategic Analysis Of Starbucks Corporation
By: Nithin Geereddy (ID: 80842082)
Strategic Analysis Of Starbucks Corporation
1) Introduction:
Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier roaster, marketer and retailer of specialty coffee around world. Starbucks has about 182,000 employees across 19,767 company operated & licensed stores in 62 countries. Their product mix includes roasted and handcrafted highquality/premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts.1 Starbucks also markets its products mix with other brand names within its portfolio of companies, which include Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks
Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks had total revenue of $14.89 billion as of
September 29th, 2013.2
2) External Environment Of The Retail Market For Coffee & Snacks:
2.1) Industry Overview and Analysis:
Starbucks primarily operates and competes in the retail coffee and snacks store industry. This industry experienced a major slowdown in 2009 due to the economic crisis and changing consumer tastes, with the industry revenue in the US declining 6.6% to $25.9 billion. Before this, the industry had a decade of growth consistent. Due to the economic slump, consumers spent less on luxuries like eating out, choosing to purchase
3
low-price items instead of high-priced coffee drinks due to shrinking budgets. The industry grew at a low annualized average growth rate of 0.9% from 2008 till 2013 with current industry revenues at $29 billion in the
US. The industry is now forecasted to grow at an annualized rate of 3.9% over the next five years, with a potential to reach $35.1 billion revenues in the
References: 1 Starbucks 2013 10-K Form for FY ended on September 29th, 2013 2 Starbucks 2013 10-K Form for FY ended on September 29th, 2013 9 Starbucks 2013 10-K Form for FY ended on September 29th, 2013 10 Starbucks 2013 10-K Form for FY ended on September 29th, 2013 16 Starbucks 2013 10-K Form for FY ended on September 29th, 2013 17 Starbucks 2013 10-K Form for FY ended on September 29th, 2013 23 Starbucks 2013 10-K Form for FY ended on September 29th, 2013