Starbucks Case Study Essays

904 Words Mar 14th, 2011 4 Pages
Starbucks Case Study
Overview
Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain.
Starbuck’s vision statement is to establish Starbucks as the
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There are local coffee shops offering specials to lure potential customers in. Restaurants are opening earlier and closing later to accommodate customers on the go. With the 85% North American customers taking their coffee to go, convenience is a major factor.
There is a great deal of risk of entry by potential competitors due to the low start up costs. McDonalds is able to add specialty coffee to their existing services to tap into the specialty coffee market. There is potential of $125,000 per year in revenue to be made by each store if they are able to successfully enter the specialty coffee market.
Water is a substitute which is healthy for us and it is free. The option to buy bottled water is also inexpensive compared to coffee. With the focus on healthier living, water is the ultimate choice.
There is more bargaining power for suppliers of technological innovations such as automated coffee machines, latte and espresso machines, etc. There are not as many suppliers for such equipment as there are for coffee beans. Customers do not really have bargaining power when it comes to premium coffee such as Starbucks. Starbucks’ business reduces the bargaining power of any single group of buyers.
Key Problem Starbucks has become the corporation most envied, pushing competitors to compete in hopes of achieving some of their similar success. The

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