Starbucks Research paper
FINC 431
Company Research Paper
Starbucks Corporation
Company Background
Starbucks started in 1971 as a single store in Seattle’s historic Pike Place Market. Starbucks chairman, president and chief executive officer, Howard Schultz, first walked into Starbucks in 1981. After traveling to Italy and becoming captivated by the Italian coffee bars, he had a vision to bring the Italian coffeehouse to the United States. In 1987 Howard Schultz purchased Starbucks with the help of local investors. In 1992 Starbucks completed its initial public offering, with common stock being traded on the NASDAQ National Market under the trading symbol SBUX. Today Starbucks has more than 18,000 stores in 62 countries and is the premier roaster and retailer of specialty coffee in the world. Starbucks sells high-quality coffees, tea and other beverages, and fresh food items through company-operated stores. They also license their trademarks though other channels such as licensed stores, grocery, and national foodservice accounts. In addition to the Starbucks brand, the company portfolio includes: Tazo Tea, Seattle’s Best Coffee, Starbucks Via Ready Brew, Starbucks Refreshers, Evolution Fresh, La Boulange, and the Verismo System. Starbucks objective today is to continue to be one of the most recognized brands in the world, by continuing the discipline expansion of their global store base.
Industry
Porter’s Five-Force Analysis
• Competitive Rivalry- Competition within the coffee service industry is high. Since there is little differentiation between competitors products, customers do not sustain high costs by switching from one competitor to another. The coffee shop industry is a mature industry that is not growing at a fast pace. Brand identity is very important within the industry because it is one way for consumers to differentiate the products of different businesses. The market is dominated by two larger companies that have set themselves apart through brand
Company Research Paper
Starbucks Corporation
Company Background
Starbucks started in 1971 as a single store in Seattle’s historic Pike Place Market. Starbucks chairman, president and chief executive officer, Howard Schultz, first walked into Starbucks in 1981. After traveling to Italy and becoming captivated by the Italian coffee bars, he had a vision to bring the Italian coffeehouse to the United States. In 1987 Howard Schultz purchased Starbucks with the help of local investors. In 1992 Starbucks completed its initial public offering, with common stock being traded on the NASDAQ National Market under the trading symbol SBUX. Today Starbucks has more than 18,000 stores in 62 countries and is the premier roaster and retailer of specialty coffee in the world. Starbucks sells high-quality coffees, tea and other beverages, and fresh food items through company-operated stores. They also license their trademarks though other channels such as licensed stores, grocery, and national foodservice accounts. In addition to the Starbucks brand, the company portfolio includes: Tazo Tea, Seattle’s Best Coffee, Starbucks Via Ready Brew, Starbucks Refreshers, Evolution Fresh, La Boulange, and the Verismo System. Starbucks objective today is to continue to be one of the most recognized brands in the world, by continuing the discipline expansion of their global store base.
Industry
Porter’s Five-Force Analysis
• Competitive Rivalry- Competition within the coffee service industry is high. Since there is little differentiation between competitors products, customers do not sustain high costs by switching from one competitor to another. The coffee shop industry is a mature industry that is not growing at a fast pace. Brand identity is very important within the industry because it is one way for consumers to differentiate the products of different businesses. The market is dominated by two larger companies that have set themselves apart through brand