Starbuckscase

Starbucks is an international coffeehouse chain established since 1971 in Seattle, Washington. The company is considered the world’s biggest specialty coffee chain. Today, the company has more than 17,000 locations in over 50 countries.

The case presents an analysis of the specialty coffee industry and the current situation of Starbucks in terms of its strategy and business system. The main goals of the company are focused on growth and becoming the most recognized and respected coffee brand in the world. The case also focuses on a request by McDonald’s to start serving Starbucks coffee.

In 1994, the growth rate in specialty coffee consumption was 15% per year. Coffee companies use exporters who buy coffee from small farmers. There is a particular distinction between specialty and basic coffee, where beans of higher quality are generally used for specialty coffee. The price is also determined by quality and quantity of coffee. Consumption of specialty coffee has notably increase because people nowadays is adopting healthier lifestyles, looking for places to socialize, enjoying affordable luxuries and knowing more about coffee. In terms of competition, the coffee industry has to deal with other type of drinks alcohol and non alcohol, as well as flavored coffee. There is plenty of room for coffee retail outlets and very low barriers to enter them. Second Cup is the second industry competitor who has many competitive advantages among the others coffee companies.

To better understand the position of Starbucks here is a SWOT analysis based on the main points presented in the case:

Strengths

*Profitability and leadership position as a global coffee brand that offers fine products and services.

*Large number of highly trained employees that are considered dedicated partners

*Innovative roasting and manufacturing equipment and unique process to avoid copy cats.

*Integrated manufacturing and distribution process that maximizes efficiency.

*High brand equity...