DeanStarlingPerson852
I need a reply to this Starbucks is a specialty coffee…
I need a reply to this
Starbucks is a specialty coffee retailer. It roasts, markets, and retails specialty coffee. The company, through its stores, offers several blends of coffee, handcrafted beverages, merchandise, and food items. Starbucks began in 1971 near Seattle’s historic Pike Place Market. It was here where Starbucks opened its first store, offering fresh-roasted coffee beans, tea and spices from around the world for customers to take home. Ten years later, Howard Schultz become interested with Starbucks coffee from his first sip. After joining the company in 1982, Howard took a trip to Milan in 1983 where he first experienced Italy’s coffeehouses. He then returned to Seattle inspired to bring the warmth and artistry of its coffee culture to Starbucks. By 1987, Starbucks switched from brown aprons to the green ones they are known for today. Starbucks then expanded to Chicago and Vancouver, Canada and then on to California, Washington, D.C. and New York. Starbucks opened a store in Japan by 1996, Europe by 1998, and China by 1999. Over the past two decades Starbucks grew to welcome millions of customers on a weekly basis.
Course Concepts
Competitive Strategy
Starbucks does well with its competitive strategy as the company has a wide range of products to offer in store and through retail stores. By doing this it keeps interest in the company outside of physically being in in a Starbucks store.
Competition
Starbucks having competition locally, nationally, and internationally has pushed the company to create new products to offer in store and through retailers which helps the business stay neck and neck with other business and sometimes ahead of the competition.
Strategic Fit
Starbucks uses strategic fit to create collaborations with other brand or well known individuals to get current and new products out on the market. Starbucks also does this through partnerships to keep continuing their marketing through multiple sources.
SWOT Analysis
Strengths
Strong brand recognition
Commitment to sustainability
Strong customer loyalty
Global presence
Strong digital presence
Weaknesses
Limited international expansion in some markets
Possible negative impact of commodity price fluctuations
High prices compared to some competitors
Limited menu options for customers with dietary restrictions or preferences.
Opportunities
Expanding into new markets
Partnerships and collaborations with other companies or brands
Adopt Price Differentiation
Coffee Subscription
Adding new unique products
Threats
Competition from other coffee chains and independent coffee shops
Changes in consumer preferences/trends
Supply chain disruptions or sourcing challenges (Ex. 2020: COVID-19)
Employee turnover
Economic downturns/market instability (Ex. Stock fluctuations we have had over the past 3 years)
Current Status
Today Starbucks has around 258,000 employees and roughly 32,660 stores. Its stock price as of 4 PM on April 19, 2023 was at $107.16. At the end of its last fiscal year Starbucks had a consolidated revenue of $8.4 billion after seeing a large amount of sales in the last year. Overall in 2022 Starbucks grew their revenues to $32.3 billion. Starbucks revealed plans to spend $450 million on its “reinvention,” which includes investing in new equipment designed for better efficiency and simplicity. The capital injection will begin in Starbucks’ fiscal 2023 calendar and extend into 2024 and 2025, with a goal to reach 55,000 stores by the end of 2030. The “Reinvention Plan” and has already proved to have a measurable positive impact on business and operations, most notably for partner retention, increased speed of service, and elevating the customer experience.
