Starbucks Case Study Nowadays Essay

Table of Content

Based in Seattle, Washington, Starbucks Corporation is a worldwide chain of coffeehouses. It is renowned globally as the largest company in its field and offers a diverse range of products including drip brewed coffee, hot espresso-based beverages, cold drinks, snacks, and merchandise such as mugs and coffee beans. Additionally, Starbucks has exclusive items tied to specific locations or seasons while also selling branded ice cream and coffee in grocery stores. The company’s success can be attributed to its wide selection of Italian-inspired coffee and espresso drinks, teas, pastries, and sweets; positioning it as a prominent player in the retail industry and the premier specialty coffee chain across the globe.

Starbucks aims to achieve global recognition and respect as a brand, while also striving to become a national company with strong values and guiding principles that employees can take pride in. Their vision is to be renowned worldwide as the leading coffeehouse, earning high regard from individuals of diverse backgrounds. Additionally, Starbucks prioritizes employee satisfaction, ensuring their happiness.

This essay could be plagiarized. Get your custom essay
“Dirty Pretty Things” Acts of Desperation: The State of Being Desperate
128 writers

ready to help you now

Get original paper

Without paying upfront

Starbucks Corporation utilizes product differentiation as a key element of their marketing strategy. They provide an extensive range of beverages, such as different coffee and tea blends and flavors. They have also expanded their offerings to include food, coffee machines, mugs, and various merchandise items. When it comes to marketing, Starbucks follows six guiding principles: fostering a positive work environment and treating individuals with respect; valuing diversity in business practices; and upholding high standards in sourcing, roasting, and delivering fresh coffee.

We are committed to ensuring customer satisfaction and promoting our products and services, while also making positive contributions to the community and environment. We recognize the importance of profitability for our long-term success.

When analyzing the environment using Porter’s Five Forces, we see intense competition in the coffee market as many established coffee shops compete for customers. Local coffee shops are offering appealing promotions that attract potential customers. Restaurants are adapting their schedules to serve busy customers. Convenience is crucial, with 85% of North American customers preferring take-out coffee.

The low initial costs pose a significant risk of new competitors entering the market. McDonalds can expand its services by offering specialty coffee, which will help them enter the specialty coffee market. If they succeed in entering this market, each store has the potential to generate $125,000 in annual revenue. Compared to coffee, water is a healthy and cost-free substitute option. Buying bottled water is also a more affordable alternative. With the increasing focus on healthier lifestyles, water is ultimately the preferred choice.

There is a greater amount of bargaining power for suppliers of technological innovations like automated coffee machines, latte and espresso machines, and more. The number of suppliers for these types of equipment is lower compared to coffee beans. When it comes to premium coffee like Starbucks, customers have minimal bargaining power. Starbucks’ business strategy diminishes the bargaining power of any individual group of buyers. The main issue is that Starbucks has become the most coveted corporation, motivating competitors to strive for similar success.

The coffee industry has become highly competitive due to the increase in coffeehouses and fast food restaurants prioritizing coffee sales. As a consequence, Starbucks has been negatively impacted by oversaturation. The excessive number of Starbucks stores has altered consumers’ perception of the brand, transforming it from an upscale coffee shop to a more widely available choice. This widespread availability of Starbucks products has consequently diminished consumer admiration for the company.

The expanded accessibility of Starbucks has caused customers to view their visits as less special. Moreover, health-conscious Americans are cutting back on their caffeine consumption. To tackle this issue, Starbucks should focus on expanding globally and utilize its presence in 44 countries to enter fresh markets. However, in the US market, Starbucks has reached a saturation point, leading to a decline in the worth of its product.

The corporation should prioritize international market expansion over domestic growth in order to increase product value, boost global sales, introduce new markets, and attract new customers. This shift could potentially raise the stock prices of Starbucks Corporation. Despite the brand’s familiarity among Americans, focusing on international growth would yield more advantages compared to expanding domestically. The only drawback to consider is the associated cost.

One possibility for Starbucks Corporation is to distinguish their product by introducing fresh and nutritious lines, then marketing them to health-conscious consumers. This approach has the potential to increase sales and draw in new customers. Yet, with an expanded product range comes heightened competition for Starbucks. Additionally, there is a concern that consumers may view Starbucks as straying from its authentic coffeehouse identity.

Cite this page

Starbucks Case Study Nowadays Essay. (2017, Feb 21). Retrieved from

Remember! This essay was written by a student

You can get a custom paper by one of our expert writers

Order custom paper Without paying upfront