Starbucks Case Analysis
1.Analyze Starbucks as a company and identify their competitive advantage
Starbucks is a company that produces and serves high quality coffee beans as well as produces and sells high quality coffee bean products and fresh pastries within each Starbucks location. The main competitive advantage that Starbucks maintains is an upper scale classy coffee bar providing a warmth with European design and furnishings. Also Starbucks sustains a competitive advantage because the company continuously looks for new products, ideas, new experiences and new locations and markets to enter into. The company also maintains a competitive advantage in the differentiated features such as their unique and distinct high quality coffee beans and flavours that cannot be imitated by its competitors. Starbucks consistently monitors trends in current locations as well as new locations that could be potential markets of entry to ensure they are providing the best quality with the most differentiation to keep customers satisfied.
2. Analyze the Indian coffee industry and India as a potential market for Starbucks.
There are both positive and negative aspects when looking into the Indian coffee industry as a potential market for the entry of a Starbucks.
Positive aspects and/or benefits
- India has reduced tariffs
- Reduction in barriers oppressing the entry of foreign companies and potential businesses which could increase India’s economy
- Government policies have been changed to attract foreign business into the country which are beneficial to outside investors and businesses
- Large boom in modern retails channels as seen from the 14% increase in sales volume over the 2005 fiscal year
- The market for coffee and tea consumers is already vast in India
Negative aspects and/or challenges
- Starbucks must research into trends and tastes of local consumers into which they intend to develop a Starbucks in
- Must ensure their product mix meets the needs of local consumers
Starbucks is a company that produces and serves high quality coffee beans as well as produces and sells high quality coffee bean products and fresh pastries within each Starbucks location. The main competitive advantage that Starbucks maintains is an upper scale classy coffee bar providing a warmth with European design and furnishings. Also Starbucks sustains a competitive advantage because the company continuously looks for new products, ideas, new experiences and new locations and markets to enter into. The company also maintains a competitive advantage in the differentiated features such as their unique and distinct high quality coffee beans and flavours that cannot be imitated by its competitors. Starbucks consistently monitors trends in current locations as well as new locations that could be potential markets of entry to ensure they are providing the best quality with the most differentiation to keep customers satisfied.
2. Analyze the Indian coffee industry and India as a potential market for Starbucks.
There are both positive and negative aspects when looking into the Indian coffee industry as a potential market for the entry of a Starbucks.
Positive aspects and/or benefits
- India has reduced tariffs
- Reduction in barriers oppressing the entry of foreign companies and potential businesses which could increase India’s economy
- Government policies have been changed to attract foreign business into the country which are beneficial to outside investors and businesses
- Large boom in modern retails channels as seen from the 14% increase in sales volume over the 2005 fiscal year
- The market for coffee and tea consumers is already vast in India
Negative aspects and/or challenges
- Starbucks must research into trends and tastes of local consumers into which they intend to develop a Starbucks in
- Must ensure their product mix meets the needs of local consumers