Starbucks Industry Analysis

Starbucks Corporation

Part-I

Objectives/Strategies, Industry Analysis & Business Analysis

Objectives/Strategies

Objectives

• Starbucks’ objective is to maintain its position as one of the most renowned and esteemed brands in the world.

• The Company’s retail goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and related products, and by providing each customer a unique Starbucks Experience.

Strategies

Starbucks plans to achieve its goal through product differentiation and community’s relations.

Product differentiation will be attained by:

• Continuing to expand its retail operations

• Growing specialty sales and other operations

• Introducing new products and new channels of distribution

Community relations will be attained by contributing positively to the environment and helping the community through its Global Responsibility program.

Industry Analysis

Industry competition

Threat of competition for the industry is very high. Starbucks faces numerous competitors in all markets that it operates in. The rivals of the company range from small shops to large well established chains around the world. Almost all specialty restaurants, quick server places and well established chains serve coffee. On the other hand, the packaged coffee section of the business is also flooded with competition. The company has to compete with a number of specialty retailers that sell packaged coffee products at warehouse clubs and super markets.

Bargaining power of buyers

Bargaining power of buyers is high. This is due to the strong competition in the industry. The buyers have the ability to choose from a range of coffee providers. They may base their decision of choosing a coffee provider on product quality, taste, price, ease of access and other similar factors.

Bargaining power of suppliers

Bargaining power of suppliers is relatively...