Starbucks’ STRATEGY AND PEST
ANALYSIS
NEVROZ GÖSTERİCİ
Established in 1971 at Seattle, Washington Famous for its quality fresh-roasted coffee beans and stylish atmosphere. Over 9,000 stores worldwide Product lines include :
− beverages (coffee, Tazo tea, soda, juices)− pastries− whole coffee beans− coffee-related hardware and equipment− merchandise (mug, CDs)
Overview
Starbucks’ Strategy
Rapid store expansion strategy• Domestic store expansion• International store expansion• Employee Training and Recognition• Real Estate, Store Design, Planning, and Construction• Store ambience
Product Line
Coffee purchasing strategy
Starbucks’ Strategy
Rapid store expansion strategy
• Domestic store expansion− A three-year expansion strategy− “Starbucks everywhere” approach
• International store expansion− Company-owned and company-operated stores or licensing − Created a new subsidiary, Starbucks Coffee International− Expanded its consumer products channel in South Pacific region
Starbucks’ Strategy
• Employee Training and Recognition− Systems to recruit, hire and train baristas and
store managers screening training programs awards for partners
• Real Estate, Store Design, Planning, and Construction− A broad range of store formats (the right image and character)− A “stores of the future” project team− High-traffic, high-visibility store locations− Control of average store opening costs− Wi-Fi availability at stores
Starbucks’ Strategy
• Store ambience− The concept of “everything matters”
− Assessment of standards
Starbucks’ Strategy
Product Line
•Wide range of products choices•Special product promotion•Selling music CDs •Joint ventures
PepsiCoDreyer’s Grand Ice Cream Jim Beam Brands
•Acquisitions Hear Music Ethos Water
•Starbucks Cards•Partnership with Bank One
Starbucks’ Strategy
Coffee purchasing strategy
• Building relationship with growers and exporters, checking on agricultural conditions and crop yields, and searching out varieties and sources that would meet Starbucks’ standards.
• Using fixed-price purchase commitment and purchasing coffee future contracts
• Contributing to the sustainability of coffee growers and helping environment conservation
• Purchasing and marketing Fair Trade Certified coffee• Promoting coffee cultivation methods that protected biodiversity and
maintained a healthy environment
PEST Analysis
Political Influences
− Relationships between U.S. and countries producing coffee beans
− Environmental regulations− Industry-specific regulations
Economic Influences− Demand for food and beverages− Customers’ buying power− Exchange rate & taxation
PEST Analysis
Social Influences− Trend− Consumer preferences− Changes in lifestyle and occupation− Education
Technological Influences− advances in manufacture− biotech and agricultural development
− IT developments
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