Starbucks Econ

Topics: Coffee, Starbucks, Coffeehouse Pages: 11 (4069 words) Published: August 16, 2013
Introduction:
Starbucks Corporation, a global coffeehouse that reformed the coffee industry by introducing high-quality coffee under a pleasing and attractive environment. Coffee is the 5th most widely traded commodity in the world and it is believed that nearly 2.5 billion cups of coffee are consumed every day. Millions of people are directly and indirectly depends on the production, consumption and sales of coffee for their livelihood. The global market for coffee is characterized by volatile prices and production levels which impacts directly on the incomes of producers and prices facing consumers. Starbucks is the number one coffee retailer in the world market. Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks is a multinational, billion Dollar Corporation and is considered to be a multinational coffee house chain. With the help of economic concepts, theories and current statistics, this recent study provides the current business operations of Starbuck Corporation in a detailed and in depth manner. Starbucks Corporations: Company profile

Starbucks Corporation is the leading roaster, retailer and marketer of high quality coffee in North America. In 1971 it was founded by Jerry Baldwin, Zev Siegel and Gorden Bowker in Seatle. Howard Schultz has brought the Company in 1987 and turned the company as the giant in the world. The corporation is currently operating all over the world including UK, Canada, China, Japan, New Zealand Malaysia, Singapore, Philippines Taiwan, Thailand, and Lebanon. It has 2400 coffee shops and kiosk in the host country and more than 100 stores in UK. It is a Seattle based company considered to be world’s number one specialty coffee retailer in the world. In more than 40 countries, it has more than 17000 Company owned licensed stores .The outlet not only sells the coffee drinks, roasted beans, teas and coffee accessories but also Italian-style espresso beverages, cold blended beverages , ice shaken refreshment beverages, a selection of premium tea and its recently launched soluble coffee. Starbucks Corporation also sells some high quality fresh food items like pastries, prepared breakfast and salads, oatmeal, juices, sodas and bottle water. The objective of the Corporation is to create respected and recognized brand all over the world. Howard Schultz is the CEO of the Corporation. Schultz has engineered the exponential growth of the Corporation all over the world. Success Story of Starbucks Corporation

The marketing strategy of the Starbucks Coffee is a huge success story all over the world. It started as a small store in Seattle in 33 years ago but able to multiply their growth with thousand of stores in U.S and many other foreign countries. Their unique and unconventional marketing strategies help them to show such a tremendous growth and success over the years. They always gave high importance to their product quality. The Starbucks coffee, though pieced slightly high is famous for its rich delicious taste and aroma even today. Starbucks continuously put the innovative ideas on their product and services by adding different flavors to their coffee or became one of the firsts to offer internet capability in their stores. Actually Starbucks historical growth relied on a blend of authentic coffee shop atmosphere associated with sound marketing strategy. It is a quality driven company based on the customer loyalty and used mainly the psychographic segmentation. The careful crafted marketing strategy for accurate product positioning and sound operating infrastructure help the corporation to enjoy the competitive advantage. Moreover recruiting skilled labor force and their training and management also play a significant role to have the edge over the competitors. It is considered as an example of vertically integrated organization. Challenges faced by Starbucks:

Over the last few decades, globalization has...

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