Situation Analysis for Starbucks Company

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Company and Product Overview

Starbucks Company is a multinational company is a marketer, roaster and retailer of coffee that operates in over 60 countries. There are four segments of the company which it operates: Middle East, Europe, Africa, Asia pacific and the channel development. The company purchases coffees and roasts before selling them, along with the handcrafted tea, coffee and other beverages in addition to different fresh food items. These are done in their stores that are operated by the company. Furthermore, Starbucks Company sells a variety of tea and coffee products. The company also licenses its trademarks through channels like the licensed stores, national accounts for food service and groceries (Bussing-Burks, 2009).

Starbucks Company has been the most successful company in the industry of coffee in the few decades that has passed. The company uses aggressive strategies for expansion to push out most of its competitors. It has focused on forming a dense stores network around United States, while opening up other new locations around the globe. Michelli (2007) pointed out that currently Starbucks is the leading coffee market retail selling coffee at a premium price to maximize their profitability.

Read also: Starbucks Corporation marketing mix

According to Sica (n.d), Starbucks Company surpassed the major competitor, Wendy and Burger king to become number three restaurant by posting $9.07 billion in sales last year. The company is also projected to gain in as one of the day parts of restaurant that is fast growing for breakfast. The estimated media budget of the company is a fraction of the total expenditure of other top chains in the industry. Bussing-Burks (2009) indicated that Starbucks company spend $94.4 million on media compared to the media expenditure of MacDonald of about $887.8million in 2010 in united States only.

The major competitors of Starbucks Company include Caribou coffee, MacDonald’s and Dunkins donuts. When comparing Dunkin donuts verses Starbucks, Americans who are hard working prefer Dunkin donuts .............


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