Starbucks Information for a Strategic Plan
Starbucks, important information for a strategic plan
Starbucks, originally based in Seattle, was established in 1971 and today with more than 6,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, Starbucks Coffee Company established itself as the dominant and most aggressive retailer in the coffee house segment. The company has transformed a simple beverage into a lifestyle accessory with as much elegance as the latest fashion (Starbucks.com). It offers whole bean coffees, espresso beverages, confectionery and bakery items and equipment in its retail stores. The retail strategy has been to put a coffee shop on every corner and to make fresh-brewed coffee by selling only the highest-quality products and charging a premium price. However, the product mix has changed significantly over the years, with beans accounting for about 15% of the chain's sales. Meanwhile, Starbucks is expanding its offerings with a line of ice cream for supermarkets and a joint venture with Pepsi Cola to market, frappuccino. The quality of the product has attracted a loyal and growing following among consumers.
Starbucks enjoyed phenomena growth; net sales for fiscal year 1996 have rocketed to $696 million. This marks the ninth consecutive year that Starbucks revenue has increased by 50% or greater (Starbucks.com). The company's objective is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the company plans to continue to rapidly expand the business through new distribution channels. The US coffee market is considered saturated, with bigger chains facing threatening competition among themselves and also from smaller coffee bars. Additionally, the increase of coffee costs lead to lower margins, intensifying competition in what has become a crowded market. Recognizing this, Starbucks has turned its attention to foreign markets for continued growth, especially the Asia-Pacific Region
Starbucks, originally based in Seattle, was established in 1971 and today with more than 6,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, Starbucks Coffee Company established itself as the dominant and most aggressive retailer in the coffee house segment. The company has transformed a simple beverage into a lifestyle accessory with as much elegance as the latest fashion (Starbucks.com). It offers whole bean coffees, espresso beverages, confectionery and bakery items and equipment in its retail stores. The retail strategy has been to put a coffee shop on every corner and to make fresh-brewed coffee by selling only the highest-quality products and charging a premium price. However, the product mix has changed significantly over the years, with beans accounting for about 15% of the chain's sales. Meanwhile, Starbucks is expanding its offerings with a line of ice cream for supermarkets and a joint venture with Pepsi Cola to market, frappuccino. The quality of the product has attracted a loyal and growing following among consumers.
Starbucks enjoyed phenomena growth; net sales for fiscal year 1996 have rocketed to $696 million. This marks the ninth consecutive year that Starbucks revenue has increased by 50% or greater (Starbucks.com). The company's objective is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the company plans to continue to rapidly expand the business through new distribution channels. The US coffee market is considered saturated, with bigger chains facing threatening competition among themselves and also from smaller coffee bars. Additionally, the increase of coffee costs lead to lower margins, intensifying competition in what has become a crowded market. Recognizing this, Starbucks has turned its attention to foreign markets for continued growth, especially the Asia-Pacific Region