Business Analysis: Starbucks Corporation

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Starbucks Corporation is one of the world's largest coffee roaster, marketer, and retailer of coffee. In 1971, three entrepreneurs, Jordan Bowker, Zev Siegel, and Jerry Baldwin opened first Starbucks store in Seattle, WA. In 1982, Howard Schultz joined Starbucks as a marketing director. He came up with the idea to make Starbucks a coffee house chain but Starbucks founders rejected the idea and he left the company in 1985. Later, Schultz started his own coffee bar named “Il Giornale”. In a couple of years, he was able to buy Starbucks Corp. from its original owners. He renamed his coffee bars "Il Giornale" as Starbucks. In 1987, Starbucks opened its first store outside the Seattle in Vancouver and Chicago. In 1996, Starbucks opened its first international store in Tokyo, Japan. [1,2]

Sales & Revenue

Currently, Starbucks has its footprint in more than 70 countries, operating over 23,000 company and …show more content…

American fast food chains like ‘Dunkin Donuts and McDonald’s are expanding their coffee business both in the US and abroad. Earlier Starbucks and McDonald’s used to compete in different spectrums but with the revamping of McCafe, McDonald’s has started a direct fight against Starbucks. [7] Companies like Costa Coffee are still ahead of Starbucks in UK and Indian markets. Costa Coffee holds a share of 47% in the UK compared to only 25% share of Starbucks. [8]

Starbucks is also facing a tough competition from a lot of specialty coffee shops due to the perception of better quality and store ambiance (in comparison to Starbucks coffee shops being ‘third-place’). One of such examples is Mikel Coffee Company, a Greece-based company. It has opened 154 stores in eight years and has started expanding internationally with its first international store in Dubai. Mikel Coffee Company has plans to expand further in UAE, Egypt, UK, Gulf countries and the US.

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