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Transcript of Starbucks
tea, fruit juices, water, soda’s, energy drinks
home produced coffee
Bargaining Power of Buyers:
Moderate to Low Pressure
no single buyer can demand price concession.
vertically differentiated products
moderate sensitivity in premium coffee of consumers
President and CEO:
March 30, 1971,
to inspire and nurture the
human spirit – one person, one cup
and one neighborhood at a time.
Table of Contents
II. Environmental Analysis
- Porter's Five Forces
- SWOT Analysis
Threat of New Entrants:
Bargaining Power of Suppliers:
Low to Moderate Pressure
Intensity of Competitive Rivalry:
High to Moderate
Porter's Five Forces
-Expansion into Emerging Markets
-Expanding Product mix and offerings
-Expansion of retail operations
-New distribution channels
in the Global
-Developed Countries Market Saturation
-Developed Countries Economy
-Changing Consumer tastes and lifestyle choices
-Consumers do have any cost of switching to other competitors
-differentiation of premium products and service
-mature industry and growth rate has been moderately low
-forms a highly important part of the suppliers business
-supplier pose a low threat of competing against Starbucks
Penetrate the emerging markets:
Brazil, India, China, South Africa and Mexico
Strengthen core competencies and capabilities
from country to country
Take advantage of the
growth opportunity of
their Tea and Fresh
Juice products mix
Modify its menu
and expand to give
more healthy product
offerings in its mix.
Implement an effective hedging
strategy so that the future costs can
be managed to a greater extent.
Focus on getting
markets in the US.
to increase the
efficiency of this distribution channel.
Make significant investments in advertising and marketing initiatives
Further build and retain
customer loyalty by
having home delivery.
Strengthening their mobile app.
Loyalty points integration
is also recommended.
Thank you for listening.
-Anna Grace Papey
-Marie Jan Go
-Rizelle Arjane Cacho
consumers due to
-Diverse Product Mix
-Customer base loyalty
-Use of Technology
and Mobile Outlets
-Strong Market Position
and Global Brand
-Products of the Highest
-Location and Aesthetic
appeal of its Stores
-Self-Cannibalization through overcrowding
-Over dependence in the United States market
-Negative large corporation image
coffee culture clash
with that of other