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Starbucks Case Study Analysis

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Starbucks case study analysis


Starbucks is an international coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,435 stores in 58 countries,

The first Starbucks opened in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. The three were motivated to sell coffe with a high quality to the customers.

Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches, pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.

And current situation Environment

Starbucks as a well known café in the world has a great contribution in the society which is operating in , which was represented by the donations which was made to the charity foundations and also by the voluntary working hours which exceeds 400000 hours which give a good impression and image for this corporation in the customers mind , accordingly this corporation has won a variety awards.

Regarding the environment starbucks are operating in a highly competitive environment around the world with a competitors have a creative ideas to improve their work and dramatically change and improve their products as some of them introduce the coffee beside their mainly products and concentrate on the quality of the coffee provided to the customers as for example the coffee provided in McDonalds.

These challenging environment makes starbucks to think widely about improving and creating brilliant ideas and products to stay away from competitors and to keep improving their profits which rapidly increased.

Starbucks has achieved a great net earnings since the 90th decade until the year of 2008 for example the gain in 2007 673 billion $, but in the year of 2008 starbucks suffered from declines in it's stock market price due some strategies errors which we will discuss later.

Situation Analysis

- Strengths

Starbucks has established high brand name recognized from a widely customers around the world during the long past years which reflected into a strong financial background caused by this recognition from their customers and purchasing their products.

Also starbucks had an obvious visibility in choosing the location of their brand inside US and around the world , as the choose it in a places where they can attract more customers interested in their products.

A major strength in this corporation is investing in their employees by offering training courses and favorable workplace in order to motivate them to serve and deal with their customers in an excellent manner, in addition to that they gave them competitive salaries along with other privileges including stock options in order to increase the loyalty for the corporation, all these issues was reflected by less turnover which considered as a good indictors for the companies.

Along with that they maintain a good relations with their suppliers to maintain their leadership in coffee market as they are considered from their customers and suppliers.

All of these strength points made starbucks attractive to the customers and it becomes as a third place for them between the home and work place

- Weaknesses

The wide a expansion and opening many stores



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