Starbuck Information System Essay

2647 Words May 15th, 2012 11 Pages
Contents Introduction 3 PEST Analysis 4 References 8 Picture references 9 APENDIX A 10 APENDIX B 11

Introduction

The coffee industry is a multi-billion dollar industry which is getting bigger and bigger each year. Coffee is a huge industry and is the second most traded product in the world after oil. Even though there is an economic crisis going on in many countries, there strong demand for coffee keeps rising. All the major companies including Starbucks are repeatedly raising prices and consumers are spending as normal.
Starbucks is an international coffee chain and is the largest such company in the world. The industry that Starbucks can be placed in is within the speciality coffee industry. Starbucks total net
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The many small independent coffee shops like Starbucks are also inviting customers in to sit down and enjoy their coffee. These small independent coffee shops rarely have big marketing funds and it’s not necessary for them to spend money on marketing. This is because it’s just one shop in one specific location. The main mass audience would rather go to a place they’ve heard of seen and advert for. Thus these small coffee shops are not a big threat to Starbucks as their success lies in local awareness. Starbucks, Caribou Coffee and Costa Coffee are seen to be more premium brands compared to 7-eleven, Dunkin Donuts and McDonalds and this is reflected in the prices of the coffee. Customers who are price conscious may tend to opt for 7-eleven, Dunkin Donuts and McDonalds but then they don’t get the coffee house experience which is what Starbucks is all about. It seem that Starbucks has become synonymous with word Coffee and if you ask anyone to name a coffee shop then the majority would say Starbucks. This is a very reassuring thing for Starbucks as it means their marketing strategies have worked and that they have a strong brand name and image which is very important and beneficial in business.

PEST Analysis

The PEST framework provides a comprehensive list of influences on the possible success or failure of particular strategies. PEST stands for: political, economic, social, technological.

Political
All over the world countries are

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