Efdew Essay

1895 Words Sep 27th, 2014 8 Pages
Coffee Supply and Demand

It was always well known that there is very high demand of gas in United States! After gasoline the next product that is high in trade with other countries is coffee. It grows in more than 55 countries across the world and supports lives of around 23 million people in farming sector. More than 115 million people in the world have their involvement in business of coffee. Growth, process, trade, and retail of coffee are the different stages all these people are involved in. In 2002, people around the world bought 14 million lbs of coffee, while around 17 million lbs was grown. This over production isn’t usual and leads to variation of price in the entire coffee industry.
A world wide known firm, Starbucks, is
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Comparing it to three or cups every day in the 1960’s, lead to a huge decrease in consumption. At the same time, it is important to note the rise after 1990. On a beneficial side, in North America people started replacing alcohol with coffee, in the name of healthy lifestyle. In fact, it started becoming a healthy luxury within the budget.

Building the business as an “anti fast food” joint
A downturn in economy and growth in competition have been pushing the coffee house giant to view the virtues of acting as a stream lined competitors, today. The first starbucks, which has stated in 1971 in Seattle, has been going through very high competition. The competitors are McDonald’s and Donuts, who have been trying hard to attract consumers with new, cheap and variety of specialty coffee beverages.
A new thrift among customers
In early 2008, a poll of 1700 consumers showed that more than 30% explained that they were able to save upto 20% few months earlier. This made the company change their strategy. The demand for this brand of this coffee started declining during the downturn of economy. Customers were trying to minimize their habit of over-spending at the times of economic stress. As a result, Starbuscks had to re-adjust their business…

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