Globalization Strategy And Growth Strategy: Starbucks

953 Words2 Pages
bulb-icon

Recommended: Starbucks target market

A.
Many people would assume that Starbucks has reached, or is fairly close to its saturation point. In just about any city, suburb, transportation hub, or college campus, there’s a Starbucks location to meet coffee drinkers needs. A likely investment for Starbucks would be to continue its expansion worldwide. Not only should Starbucks concentrate on expanding its footprint, but also continue to alter its stores. Rather than opening more dine-in restaurants, Starbucks should concentrate heavily on drive-thrus in urban and suburban areas. In addition, Starbucks is opening up express stores which are essentially walk-thrus in New York, Boston, and Seattle. This strategy is aimed at increasing the company’s store penetration into the coffee market.
With the coffee markets, continuous growth, Starbucks must position itself as the most preferred coffee company. Starbucks has been looking at several Roasteries, offering different types of coffee experiences such as: pour-over, siphon, clover, specifically roasted Reserve coffees on-site from a scoop bar, and interactive experience with bars and baristas. Targeting the upper-middle income group is essential to Starbucks success while still offering the premium Roastery experience but at a lower cost. Additionally, lunch hours, have been the fastest growing segment for a number of years. Improved food …show more content…

market should focus on getting additional penetration into untapped rural markets. Another growth sector is its packaged coffee packets and iced beverage products. Starbucks should build better relationships with big box retailers to get premium shelf space and increase the efficiency of this distribution channel. From their 10-K’s, we can see that Starbucks invest very little in advertising and marketing initiatives. It would be recommended that Starbucks makes significant investments in advertising and marketing initiatives in the face of increased competition in the

Show More
Related

  • Cost Drivers For Starbucks

    1738 Words  | 4 Pages

    In order to narrow the market structure, I decided to focus on the coffeehouse market structure of the company. Starbuck’s largest competitors in the coffeehouse market are Cairbou Coffee, The Coffee Bean, and Peet’s Coffee and Tea. All of these firms offer an enticing atmosphere and high quality beverages. A monopolistic competition is a market structure where firms have many competitors, low entry and exit costs, and offer different types of products to their customers. In detailing this, I believe that Starbucks falls under a monopolistic competition market structure. According to Prezi.com, Starbucks is also able to take advantage of economies of sale by purchasing dairy and paper products in bulk due to the enormity of the size of their operations (Kim, A 2014). This allows them to have an advantage of lower input costs and price their products on the elasticity of consumers. The company continues to pride themselves on the fact that their customers are not just purchasing a cup of coffee, but also the ambiance that comes with

    Read More

  • Starbucks’ Three Year Strategic Plan

    2697 Words  | 6 Pages

    Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop and visit should be on our “trial” market plan for the next few years.

    Read More

  • Economic Forces in Starbucks Corporation

    1412 Words  | 3 Pages

    The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).

    Read More

  • The Target Market: The Case Of Starbucks

    1025 Words  | 3 Pages

    With that store being there to help support new stores that would be entering the region. The goal was to have around 20 stores after two years of entering a market and have those stores expand even further into smaller cities and suburban locations. They also started to add drive-through because it made it more convenient for parents with small children. Some of the drawbacks of drive-through were that it took away from impulse buys and sometimes created bottlenecks in the line. Licensing the brand was also a great way that they expanded their business; by putting Starbucks in airports in malls they create a lot of foot traffic lead to successful stores. Starbucks carefully considered their image and the image they wanted to uphold when choosing licensees. The international market is now where Starbucks has the most potential to grow. As of right now Starbucks has plans to open 1,400 new stores in China. That’s more than half of the store it already has in China. The growth technique that I was most impressed with was that having two locations so close to each other would not saturate the market. The first store would see a drop in sales at first but would bounce back and the new store would grow. I notice we have that here, at Target in uptown you can actually see the Starbucks across the street while you are in line. Both seem pretty busy most of the time too.

    Read More

  • Marketing Research Plan: Starbucks in China

    1269 Words  | 3 Pages

    Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...

    Read More

  • Strategic Options Of Starbucks

    919 Words  | 2 Pages

    This strategic capitalises on weaknesses since will decrease the cost of coffee beans/beverages but also Starbucks operating cost which they regularly ship across the world to various stores. Starbucks can capitalise on this weakness to improve their brand options. It adds value in the inbound logistics activities, operations and procurements. Starbucks should consider this option since it will decrease their operating cost and therefore will reduce the prices on their menu. The attractiveness is the exact same as mentioned in option 1.

    Read More

  • Starbucks

    1328 Words  | 3 Pages

    Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.

    Read More

  • What Is Starbucks Supply Chain Strategy

    1078 Words  | 3 Pages

    Bruss (2001) argues that the company hopes as well to make new investments in new coffee types. Starbucks has recently developed a new type of coffee called green-coffee. These strategies are created with the objective of support Starbucks’ commitment to buy coffee that has grown and processed by suppliers. They meet certain conditions of social, economic and quality standards. In addition to that, the company is paying additional premiums to those vendors who meet the specific requirements that the company wants.

    Read More

  • Starbucks Case Study

    1287 Words  | 3 Pages

    With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.

    Read More

  • Starbucks

    1009 Words  | 3 Pages

    Expansion of Domestic and International retail markets: With the target of 2000 stores by year 2000, Starbucks is on an expansion mode. They are expanding into the international markets and simultaneously they are diversifying in the domestic markets also. Initiatives like Frappuccino and the Doppio cart are part of this.

    Read More

  • Schultz's Case Study: A Brief Background Of Starbucks

    1431 Words  | 3 Pages

    Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,

    Read More

  • Major Problems Facing Starbucks

    1881 Words  | 4 Pages

    One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).

    Read More

  • Starbucks Reflection Paper

    786 Words  | 2 Pages

    When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.

    Read More

  • Starbucks Coffee and Snack Industry Analysis

    1147 Words  | 3 Pages

    Opportunities available to Starbucks include growth of its supplier range, expansion to emerging economies, increased diversification of its product offerings and the growth of its retail operations; which are aimed at growing Starbucks’ profitability and market presence.

    Read More

  • Force Field Analysis: Force Field Analysis Of Starbucks

    1345 Words  | 3 Pages

    Starbucks has identified high value opportunity in China, India, Brazil and Japan. The large expansion opportunity of twelve billion in China alone is enough to drive Starbucks to expand globally. The organization has planned to double its footprint to 3000 stores in China by 2019 ("Starbucks Details Five-Year Plan to Accelerate Profitable Growth", 2014). Starbucks realizes that eventually there will be a diminishing return on their existing market within the US due to market maturity and there are only two ways to expand through diversification in their offerings and entering new markets. Given the international opportunity for growth and expansive tea market in Asia, the company will enjoy the benefits of the growth opportunity. Management’s decision to continue to grow globally is a driving force that has yielded

    Read More

More about Globalization Strategy And Growth Strategy: Starbucks

Open Document