Starbucks Case Study Essay

Starbucks Case Study #1
Mendy Varga

Description of the case
Starting from 17 coffee shops in Seattle, to a company with over 19 thousand shops in 58 countries over only 15 years is impressive in any business. As of 2016, they have over 25 thousand locations (https://www.statista.com/statistics/266465/number-of-starbucks-stores-worldwide/). Along with that, they have experienced an increase of sales by an average of 20% annually since they went public. They have purposely flooded cities with their stores, even employing hard tactics to push out, or keep out, other competitors.

Challenges they are facing is that younger consumers do not agree with Starbucks prices and yuppie persona. Starbucks attracts a more affluent customer base, who feel

Their challenge now is how to change their processes so that they can continue to see this large amount of growth into the

with regards to younger consumers. Interestingly, as of 2014, the city with the largest number of Starbucks is Seoul with 284, with New York City coming in at a close second with 277 stores. (https://www.statista.com/statistics/306896/cities-with-the-largest-number-of-starbucks-stores-worldwide/)

There are many challenges to expanding globally, including imitation, different regulations, labor expectations and cultural challenges. To be successful, they also need to customize their product to fit the expectations of each country, including adjusting their drinks to be less sweet, etc.
Since this case study was published in June 2016, it is interesting to see how it is changed in the 11 years since the case study.

I found in interesting that the company exploits a relatively small amount of marketing, less than 1 percent of revenue. They are able to keep a tight hold on their brand as most of the stores are company-owned.

They are financially sound, with relatively low debt. They are able to open a store in an impressive 16 weeks, and can recoup the initial investment in 3 years.
Succinct