Starbucks Analysis

647 words - 3 pages

It is difficult for many to trade the taste and quality of Starbucks for cheaper alternatives such as the break room coffee. Yes, maybe the break room coffee is more convenient and free, but is it really that inconvenient to go grab a Starbucks? Also, is it really that expensive considering how wonderful the taste is? This is a common thought process of a frequent Starbucks coffee drinker. It is these thoughts that make power of rivalry moderate.
The power of the buyer is moderate to high. If a consumer is looking for a morning coffee or an afternoon pick-me-up they have many options to satisfy this demand. There is nothing, besides quality and variety, that forces frequent coffee drinkers to choose Starbucks. Starbucks is generally more expensive than the alternative, which gives the buyer the power to decide whether to spend the extra money and shop at Starbucks.
Although buyer power is high, Starbucks holds the largest share of coffee sales worldwide. Starbucks also holds many coffee related partnerships and subsidiaries making it the largest purchaser of coffee beans from coffee bean suppliers. Due to Starbucks’ position in the coffee industry, the success and existence of many coffee bean farmers, suppliers, and distributors relies on Starbucks being a customer. This gives the suppliers very little power.
The power of new entrant is low to moderate. Starbucks has built a strong image worldwide amongst its buyers and suppliers. It would be extremely difficult for a new entrant to compete with Starbucks. It seems like Starbucks coffee products can be found everywhere and/or used anywhere. Their products can be found at Starbucks coffee shops, licensed coffee shops, and subsidiary owned shops and retailers, and at many grocery stores. Starbucks has also developed many products that can be used in many different situations, such as coffee beans that can be ground and used at home, instant coffee that can be used at work, k-cups that can be used in a kurig coffee machine, and ready to drink...

Find Another Essay On Starbucks Analysis

SWOT analysis of Starbucks

3311 words - 13 pages ; hamburger and believe that they will grow up more and more as the dominant player on this market .With the help of the SWOT analysis and the BCG matrix the situation of Starbucks can be analyzed after finding out, why people pay more money for a coffee, than in other coffeehouses.What has suddenly made people across the world willing to pay three to four times more for a cup of coffee than they used to?Starbucks has created a new trend. They do not just

Starbucks Environmental Analysis

3329 words - 13 pages Environmental Analysis PAGE 1 Running Head: Environmental AnalysisMission, Vision and ValuesDonna TyreeUniversity of PhoenixMBA 580Jimmie MorganFebruary 11, 2008Today, when people say "Wake up and smell the coffee" they are not speaking about home made coffee. They are talking Starbucks, the world's #1 specialty coffee retailer. Starbucks was founded by Howard Schultz in 1985 under the name I l Giornale Coffee Company. In 1987 Howard changed

Starbucks SWOT Analysis

1537 words - 6 pages Starbucks SWOT Analysis Executive Analysis Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39

Starbucks Analysis Paper

4267 words - 17 pages PAGE PAGE 17 Starbucks Coffee Running head: STARBUCK'S COFFEE ANALYSISStarbuck's Coffee Analysis PaperJona Boney, Laurie Spivey, Suzi Hunt,Sky Borromeo, Jarrod Trantham, Billi Jo DoyleUniversity of PhoenixTEC/401Professor InlongApril 30, 2008Starbuck's Coffee Analysis PaperStarbucks Corporation is a transnational coffee and coffeehouse chain company based in the United States (Thompson, Strickland, 1999). Starbucks is the larges coffeehouse

Financial Analysis of Starbucks Corporation

1085 words - 4 pages calculation, Starbucks is a company that attract investor to put investment. References Matthew. (2014). Must know risk: why Starbucks should hedge its shrubs. Retrieved on May 15, 2014 from Starbucks Corporation (n.d.). retrieved on May 15, 2014 from

Target Market Analysis of Starbucks

2826 words - 11 pages & Deliver. [ONLINE] Available at: [Accessed 20 April 14]. Nithin Geereddy. 2013. Strategic Analysis of Starbucks Corporation. [ONLINE] Available at: [Accessed 18 April 14] Researchomatic ,Starbucks Market Segmentation And Positioning , Accessed January , 17 , 2012).

Starbucks Business Ethics Case Analysis

1544 words - 6 pages Starbucks Business Ethics Case Analysis INTRO Ethical issues in business are a common placed every day occurrence that will never cease to exist. We will discuss an ethical issue that involves a large American corporation and its practices when dealing with suppliers of produce that is essential but not solely used by this business. We will present several point of views backed by literary findings that suggest ethical practices may or

Starbucks Environmental Analysis - Marketing OCC - Paper

1042 words - 5 pages Environmental Analysis: Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 75 countries. Starbucks purchases and roasts high-quality coffees that are sold, along with handcrafted coffee, tea and other beverages and a variety of high-quality food items, including snack offerings, through company-operated stores. Starbucks also sells a variety of coffee and tea products and license our

Starbucks: An Analysis with Focus on the Financial Function

2251 words - 9 pages environmental factors that influence and affect a company. I will use the “PESTLE” analysis to identify and understand the macro economical factors that Starbucks must consider when conducting its business. Political: • Taxation policies – High taxation imposed by a country’s government on the coffee bean farmers may ultimately lead to Starbucks having to pay a higher price for the coffee they wish to purchase, which may be passed on to the customer

Starbucks - An analysis with focus on the financial function

974 words - 4 pages use the “PESTLE” analysis to identify and understand the macro economical factors that Starbucks must consider when conducting its business. Political: • Taxation policies – High taxation imposed by a countries government on the coffee bean farmers may ultimately lead to Starbucks having to pay a higher price for the coffee they wish to purchase, which may be passed on to the customer. • Government stability – Starbucks must consider and

Michael Porters Analysis Of Starbucks

2650 words - 11 pages Michael Porter, a Harvard Professor introduces his ideology of the Five Forces model that shapes the competition in the industry. Each force is interrelated and therefore leads into the other to show the elements directly involved in the further success or ultimate success of the firm.      Starbucks Coffee Co. throughout its existence since 1971, with its great management team, innovative style of thinking and strong

Similar Essays

Starbucks Analysis

8255 words - 33 pages Starbucks Corporation (A) Starbucks Corporation is a Seattle, Washington-based coffee company. It roasts and sells whole bean coffees and coffee drinks through a national chain of retail outlets/restaurants. Originally only a seller of packaged, premium, roasted coffees, the bulk of the company's revenues now comes from its coffee bars' where people can purchase beverages and pastries in addition to coffee by the pound. Starbucks is credited

Starbucks Coffee Company Analysis

3960 words - 16 pages challenge ahead in order to reinvent and make anew.ConclusionOne of the recurring themes in this analysis is that Starbucks is clearly the leader in this industry despite a significant downturn in the economy. This has been achieved despite being confined to a monopolistic competitive market. Starbucks have achieves this by influencing consumer demand through superior product positioning - not just for their main product sold (high-quality coffee), but

Starbucks Marketing Analysis

3210 words - 13 pages Starbucks Marketing Analysis Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. The goal of Starbucks is to establish the company as the premier purveyor of the finest coffee in the world while maintaining the organization’s uncompromising principles. In addition, Starbucks wants to develop its brand beyond being the preferred outlet from which to purchase coffee to becoming the preferred

Starbucks Financial Analysis

979 words - 4 pages slides and play houses. Moreover, using a clown “Ronald McDonald” to attract youngsters is quite brilliant. This type of marketing is setting the bar for the next generation to keep customers for generations to come. Starbucks needs to take a step back and reevaluate their advertising market. There should be an analysis to see where the “Frappuccino” lost its appeal. Target Marketing Is the younger crowd the target for Starbucks? According to