Business Report Starbucks
By Nadia, Sabrina, Vincent Date: May 18, 2006
The Main Business Activity Coffee Cookies Cake Chocolate Some other snacks Starbucks CDs Coffee makers and affiliated equipment
The Professional Background Starbucks in Taiwan – President Coffee Corporation Starbucks all over the world
The Overall Vision for the Company
The 6 Starbucks mission statements The 7 environment mission statements
Social Responsibility
Starbucks overview
Turnover:24million (in Taiwan) Position on 2005 Fortune 500 list: # 338 Typical customer: 33 million customers worldwide per week.
Locations: Starbucks is in 35 countries.
Starbucks overview
Turnover:24million (in Taiwan) Position on 2005 Fortune 500 list: # 338 Typical customer: 33 million customers worldwide per week.
Locations: Starbucks is in 35 countries.
State of the Market
Growing steadily each year Over 7,500 stores around the world
Revenue is growing by 20% a year Opening approximately three stores every day Next target market: China
Market Position
Up market A cup of coffee costs more than NT$100 The Starbucks Experience:
products, service, music, environment, etc.
Target Market
Adults with incomes, college students, etc. Savvy and avid coffee drinkers Customers who enjoy the “Starbucks Experience”
Current Major Competitors
The other coffee shops that sell similar coffee at a much more competitive price. Local copycats of Starbucks in Taiwan
e.g.. Barista Coffee (西雅圖極品咖啡)
Advertising & Promotion
Little advertising and promotion after break into a new market Focus on the training and farewell of employs To enhance the service quality happy customers more customers (Word of Mouth)
Locations
1. Downtown a. where there are many people & heavy traffic b. in business center or shopping district 2. Large stations or rest areas
Starbucks SWOT
Strength: A popular and famous brand, a coffee-chain giant, knowing how to sell affiliated products
Weakness: The selling price is not cheap
Opportunity: Developing strategic alliances with other catering trade.
Threat: Lots of replacement products, Business administration is easy to be imitated by other coffee shops
The Required Property
Factories: Canned coffee, coffee ice cream, hand-made cookies, and cakes.
Special Property: Coffee makers, Starbucks staff
Goals, Strategic issues, and Expansion
Goals: Short-term goal: Making more locations in 2006 (note: Starbucks does not have franchise)
Long-term goal: Be as recognizable a brand as Coke.
Strategic issues: Technology affects supply chain issues and proprietary roasting techniques.
Choose most appropriate long-term strategy to grow sales and profitability.
Goals, Strategic issues, and Expansion
Expansion: Will open more locations in Taiwan for achieving a great turnover
Extend their branded product line and make some products available in retail markets (e.g. selling coffee, ice cream, cookies in 7-11.) Develop more strategic alliances (e.g. Chinatrust
bank).