Environment and Market Strategy Firstly, looking at environmental factors and in particular the changes in the overall external macro environment. Such changes cannot always be pre-determined and can be seen to effect organisations on various differing levels strategically. (Brooks & Weatherson, 2010) One example of a colossal environmental factor which affected not only Starbucks but organisations globally lies within the global financial crisis of 2007-08. Prior to the 2008-2009 period, Starbucks had not posted a loss for fifteen years. (Lee, 2008) Leading on from the global recession, Starbucks found themselves in a state of struggle with stock prices throughout the company at an all-time low. (Lee, 2008) Comparatively, revenues from
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Starbucks finds itself in a highly competitive market place and as such it is essential to set itself apart competitively in order to gain an increased consumer base. (Swan, 2014) As a means of entering an uncontested market place, the ‘’Blue Ocean’’, Starbucks has worked tirelessly as an organisation to transform the overall coffee shop experience and environment for consumers, Starbucks wished to make the service more so a way of life rather than a onetime purchase. (Swan, 2014) Larson further reiterates that Starbucks aim to provide a feeling of a ‘’third place’’ for customers whereby it is possible to escape from work and home life. (Larson, 2008) As to achieve a perfect ‘’Blue Ocean’’ strategy throughout the coffee industry, Starbucks announced a partnership in late 2007 with iTunes, allowing customers an accustomed music service when entering a Starbucks branch. (Fleshman, 2007) Starbucks also changed the landscape and led the way when it came to launching offering free Wi-Fi services in 2010 throughout each chain. (Warren, 2010) The overall aim was to enhance the overall experience for existing customers whilst also creating demand from a potentially untapped customer base, further widening overall position in the ‘’Blue Ocean’’. (Swan, …show more content…
Since 2008, the coffee shop market size has increased year on year. Appendix 1 demonstrates market growth between the years 2009-2013. (Market Line, 2012) As a result of increasing market size, competition is rife throughout the coffee industry with competition not only coming from other well established coffee chains for example Costa Coffee and Café Nero but also other well established businesses such as McDonald’s have latched on to the expanding demand from consumers. Consequently, McDonald’s increased their product line and have sold speciality coffee throughout its globally recognised chain since 2008. (Market Line, 2014) McDonalds launched itself in to the coffee and intended to be seen a cheaper alternative for consumers, some have even claimed that it would ultimately prove a ‘’game changer’’ for Starbucks. (Lim, 2014) Despite the competition, Starbucks have remained defiant and global sales have grown consistently year-on-year since 2008. (Lim,
Starbucks finds itself in a highly competitive market place and as such it is essential to set itself apart competitively in order to gain an increased consumer base. (Swan, 2014) As a means of entering an uncontested market place, the ‘’Blue Ocean’’, Starbucks has worked tirelessly as an organisation to transform the overall coffee shop experience and environment for consumers, Starbucks wished to make the service more so a way of life rather than a onetime purchase. (Swan, 2014) Larson further reiterates that Starbucks aim to provide a feeling of a ‘’third place’’ for customers whereby it is possible to escape from work and home life. (Larson, 2008) As to achieve a perfect ‘’Blue Ocean’’ strategy throughout the coffee industry, Starbucks announced a partnership in late 2007 with iTunes, allowing customers an accustomed music service when entering a Starbucks branch. (Fleshman, 2007) Starbucks also changed the landscape and led the way when it came to launching offering free Wi-Fi services in 2010 throughout each chain. (Warren, 2010) The overall aim was to enhance the overall experience for existing customers whilst also creating demand from a potentially untapped customer base, further widening overall position in the ‘’Blue Ocean’’. (Swan, …show more content…
Since 2008, the coffee shop market size has increased year on year. Appendix 1 demonstrates market growth between the years 2009-2013. (Market Line, 2012) As a result of increasing market size, competition is rife throughout the coffee industry with competition not only coming from other well established coffee chains for example Costa Coffee and Café Nero but also other well established businesses such as McDonald’s have latched on to the expanding demand from consumers. Consequently, McDonald’s increased their product line and have sold speciality coffee throughout its globally recognised chain since 2008. (Market Line, 2014) McDonalds launched itself in to the coffee and intended to be seen a cheaper alternative for consumers, some have even claimed that it would ultimately prove a ‘’game changer’’ for Starbucks. (Lim, 2014) Despite the competition, Starbucks have remained defiant and global sales have grown consistently year-on-year since 2008. (Lim,