report on sbph

8/13/2019 Report on sbph

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Established in 1971 at Seattle, Washington Famous for its quality fresh-roasted coffee beansand stylish atmosphere.

Over 9,000 stores worldwide Product lines include :

beverages (coffee, Tazo tea, soda, juices)

pastries whole coffee beans coffee -related hardware and equipment merchandise (mug, CDs)


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1971 Starbucks Coffee, Tea, and Spice store (coffee bean roasting)opened in Seattles Pike Place Market.

1982 Howard Schultz joined Starbucks as a retail operations andmarketing.

1983 Schultz traveled to Italy and was captivated with Italian coffeebars and decided to develop a similar concept of coffeehouse.

1984 Schultz left the Starbucks.

1985 Howard Schultz established Il Giornale Coffee Company.

1987 Il Giornale acquired Starbucks and changed the name intoStarbucks Corporation.


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Coffee and Tea:Whole bean and ground coffee (Starbucks and Seattles Best Coffee brands) Starbucks VIA Ready BrewStarbucks K Cup portion packsTazo tea filter bags and tea latte concentrates.

Ready to Drink (RTD):Starbucks bottled Frappuccino coffee drinksStarbucks Discoveries chilled cup coffees

Starbucks Double shot espresso drinksStarbucks Doubles hot Energy + Coffee drinksSeattles Best Coffee Iced Lattes Starbucks Refreshers beveragesTazo bottled iced and juiced teas.

Starbucks Ice Cream: Super premium coffee and coffee free flavors


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Total stores: 17,651*(as of July 1, 2012)

Argentina, Aruba, Australia, Austria, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Canada,Chile, China, Costa Rica, Curacao, Cyprus, Czech Republic, Denmark, Egypt, ElSalvador,England, Finland, France, Germany, Greece, Guatemala, HongKong/Macau, Hungary,Indonesia, Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, Morocco, NewZealand,Netherlands, Northern Ireland, Oman, Peru, Philippines , Poland, Portugal, Qatar, Romania,Russia, SaudiArabia, Scotland, Singapore, SouthKorea, Spain, Sweden, Switzerland, Taiwan,Thailand, Turkey, United Arab Emirates, UnitedStates and Wales.


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Starbucks Corporation has been the most successful coffee chain inthe past few decades using their aggressive expansion strategies topush out its competition.

Clustering its stores in one area helped Starbucks quickly achievemarket dominance with over 20 million regular customers per week.

Currently leading the retail coffee market with selling their coffee for a

premium price to increase profitability.

Spends less than 1% of its annual revenues on advertising. Theirstrategy relies on word of mouth advertising.

Had an annual sales of $10 billion as of April 2010


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CommunityEthical SourcingEnvironment


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Community Service

- third annual Global Month of Service where partners will leadcommunity service projects focused on the individual needs ofthe neighborhoods where they live and work.


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Community Stores

- community stores are an exciting chapter in that story, one wherestores play a central role in supporting revitalization efforts to address

education, employment, health, housing, and safety issues inneighborhoods.

- To date, the Community Store program has generated nearly$800,000 for holistic community-revitalization programs focused oneducation, safety, housing, health and employment.


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Youth Leadership

- look for innovative ways to help strengthen communities withStarbucks Youth Leadership Grants (Youth Action Grants in 2012)

hoping to develop young people to become extraordinary leaders,by investing in the leadership skills required for the changing globalEconomy.

- These investments help young people learn the skills required forour changing global economy, such as business savvy, socialconscience and collaborative communication.


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Farming Communities

- Starbucks invests in programs designed to strengthen localeconomic and social development. We are working collaborativelywith nongovernmental organizations that have experience andexpertise in working with farming communities.


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Coffee, Cocoa &Tea

- As we buy coffee, we aim to foster a better future for farmers anda more stable climate for the planet. Doing this helps create a

long-term supply of the high-quality beans weve been carefullyblending, roasting and packing fresh for more than forty years.


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STRENGTHS

Leading retailer and roaster for brand specialty coffee inthe world.

Known for providing superior products and services

Limited number of strong competitors

High market share and market growth


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WEAKNESSES

High pricing compared to competitors because of the highquality ingredients used.

Refuses to guarantee that milk, beverages, and bakedgoods sold do not contain any genetically-modified ingredient

Customers shifting to competitors with lower pricedproducts.


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OPPORTUNITIES

New market opportunities internationally

More bottled drinks sold in stores Expand on distribution.

Form partnerships with other coffee companies Widenmarket


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THREATS

McDonalds came into direct competition with Starbuckswhen it upgraded its coffee in 2006

Global financial crisis makes people not to spend toomuch on coffee

Substitute products such as colas, teas, or juices that aresold in retails.

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