Starbucks, Case Study - 2099 Words

December 3, 2012 December 3, 2012 Andrei Gavriluta Strategic management Birkbeck, University of London Andrei Gavriluta Strategic management Birkbeck, University of London Starbucks in the us: too much coffee spilling all over? Coursework - Essay Starbucks in the us: too much coffee spilling all over? Coursework - Essay Table of Contents I. SUMMARY1 II. CASE STUDY ANALYSIS 1 i. STRATEGIC POSITIONING AND MARKETING MIX1 ii. PORTER’S FIVE FORCES2 iii. SWOT ANALYSIS3 iv. EXTERNAL ENVIRONMENTAL FORCES – PEST ANALYSIS3 III. CONCLUSIONS4 IV. REFERENCES5 I. II. SUMMARY Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it†¦show more content†¦Additionally, promotion can be considered as a marketing strategy which helps the increase in sales (Shimp 1997:42). Starbucks attempted to establish a national monopoly without having to use advertising. They relied on organizing events and promoting their brand – by using mugs and T-shirts on which they printed artworks that were a reflection of a city’s personality. ii. PORTER’S FIVE FORCES According to Michael Porter, â€Å"Every industry has an underlying structure, or a set of fundamental economic and technical characteristics, that give rise to these competitive forces† (Porter 1998:23). The forces mentioned above are: industry rivalry, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of buyers. Additionally, Porter mentioned that: â€Å"Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda or action† (Porter 1998:22). By applying the industry rivalry concept, although Starbucks has other competitors, they are comparatively smaller and they often focus their business in certain areas or regions. Some of Starbucks’ competitors are Coffee People, Gloria Jean’s, Second Cup, which are currently expanding or planning to expand their businesses nationally or internationally. Starbucks is undoubtedly dominating the coffee industry, however that does not exclude the entry of new rivals. For example, McDonald’s, BurgerShow MoreRelatedStarbucks Case Study : Starbucks1148 Words   |  5 PagesStarbucks Case Study Throughout the United States and Asia, Starbucks is renounced for their expertly crafted coffee, so much so that an immensely large portion of the nation at least recognizes the logo and the name. This success to this day keeps producing higher returns for investors especially over this last third quarter of 2016. The third quarter had set many new records with Starbucks for both the American markets as well as the Asian markets causing a big boom for the company and sparkingRead MoreStarbucks Case Study : Starbucks904 Words   |  4 PagesSTARBUCKS CASE STUDY Starbucks was started by three former students of the university of San Francisco named Jerry Baldwin, Zev Siegl and Gordon Bowker. Their plan was to sell high quality coffee beans and roasting equipment but did not expect the success that their company would achieve in the future. The first Starbucks store was opened in March 30, 1971 in seattle, Washington. Their first store was located at 2000 Western Avenue and it sold roasted whole bean coffee till 1976. Soon they shiftedRead MoreStarbucks Case Study794 Words   |  4 PagesStarbucks Case Study - What factors accounted for the extraordinary success of Starbucks in the early 1990s? Building a successful brand with multiple stores opening. Selling whole beans and premium priced coffee. 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