CURRENT STATUS
Throughout Starbucks’ history it has been forced to evolve. As of 2015, Starbucks has an array of products that include coffee, tea, other beverages, and fresh food items. In addition, it sells coffee and tea products and licenses its trademarks in licensed stores, which include grocery and national foodservice stores (Starbucks Corporation, 2015). Therefore, as the company continues to grow it must diversify and improve its existing product line. In addition to Starbucks evolving, it has improved its strategy. The company is currently more focused on international expansion as its domestic market has become saturated.
(1a): Analyze the specialty coffee café industry using Porter’s Force & What are the key success factors in this industry?
Businesses throughout history have thrived by focusing on efficiency, effectiveness, and …show more content…
This relates to Starbucks need for premium coffee beans, especially the Nariño Supremo, which is a product of Colombia (Hill et al., 2015). Therefore, Starbucks’ selling process begins with obtaining coffee beans. According to our text, Starbucks’ bean procurement standards are demanding because the company conducts vigorous tests or experiments to get the proper balance of flavor, body and acidity (Hill et al., 2015). Therefore, if quality standards decrease Starbucks may need to look for other suppliers of the Nariño Supremo or other types of coffee beans such as the Arabica. The potential decrease in quality that the company’s products may face could in effect deter loyal customers from purchasing this product. As a result, a threat of substitute products or the buying power of customers switching to other competitors may affect the company’s sales in the short-term. To optimize its product Starbucks should ensure that its supply of coffee beans is well intact through forms of storage or through multiple
Throughout Starbucks’ history it has been forced to evolve. As of 2015, Starbucks has an array of products that include coffee, tea, other beverages, and fresh food items. In addition, it sells coffee and tea products and licenses its trademarks in licensed stores, which include grocery and national foodservice stores (Starbucks Corporation, 2015). Therefore, as the company continues to grow it must diversify and improve its existing product line. In addition to Starbucks evolving, it has improved its strategy. The company is currently more focused on international expansion as its domestic market has become saturated.
(1a): Analyze the specialty coffee café industry using Porter’s Force & What are the key success factors in this industry?
Businesses throughout history have thrived by focusing on efficiency, effectiveness, and …show more content…
This relates to Starbucks need for premium coffee beans, especially the Nariño Supremo, which is a product of Colombia (Hill et al., 2015). Therefore, Starbucks’ selling process begins with obtaining coffee beans. According to our text, Starbucks’ bean procurement standards are demanding because the company conducts vigorous tests or experiments to get the proper balance of flavor, body and acidity (Hill et al., 2015). Therefore, if quality standards decrease Starbucks may need to look for other suppliers of the Nariño Supremo or other types of coffee beans such as the Arabica. The potential decrease in quality that the company’s products may face could in effect deter loyal customers from purchasing this product. As a result, a threat of substitute products or the buying power of customers switching to other competitors may affect the company’s sales in the short-term. To optimize its product Starbucks should ensure that its supply of coffee beans is well intact through forms of storage or through multiple