Starbucks Marketing Essay Case Study

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Case Study of Starbucks Marketing Essay

Starbucks Corporation 

 

Type of Industry

Coffee products and coffeehouse chain

Headquarters

Seattle, Washington

Sales/Revenue

US$ 24.71 billion

Area Served

Worldwide

Number of Stores

30,000 (Approx.)

Competition

  • Costa Coffee
  • McDonalds McCafe
  • Dunkin Donuts
  • Café Coffee Day

USP

Quality coffee products  

Target Group

Higher income groups

Products

Coffee products

Website

www.starbucks.com

Starbucks Marketing Essay Case Study Introduction

One of the world’s leading coffee companies and coffeehouse chains, Starbucks Corporation (Starbucks) is an American multinational company that has succeeded in spreading its business worldwide in an effective and efficient manner in both developed and emerging economies. Operating in over 30,000 locations worldwide, Starbucks should be considered an embodiment of success. The case study of Starbucks marketing essay should be conducted in order to understand how the Company has been able to expand its business so effectively on a global basis. A SWOT and PESTLE analysis is essential to strengthen the case study of Starbucks marketing essay more thoroughly and explicitly.

Starbucks Marketing Essay SWOT Analysis

Strengths

There are certain factors that have contributed to the growth, rise, development, and expansion of Starbucks’ global business. The case study of Starbucks marketing essay reveals that the primary strength of Starbucks is its strong brand image that the Company has been successful in sustaining over the years. The case study of Starbucks marketing essay also reveals that it is the strong brand image that has helped the Company to penetrate into new markets and spread its business exponentially. It has also been observed that an extensive global supply chain has also added to the strength of Starbucks and helped the Company to operate smoothly in myriads of countries. It is owing to having a formidable supply chain that the Company has been able to reach to potential customer segments worldwide. Moreover, it has also been observed that moderate diversification through subsidiaries has also added to Starbucks’ strengths.

Weaknesses

There are certain factors that have rendered Starbucks some specific weaknesses. For instance, the case study of Starbucks marketing essay reveals that, high price points is a primary weakness of Starbucks. The case study of Starbucks marketing essay reveals that owing to high price of its products, it becomes often difficult for Starbucks to draw the attention of customers who are not willing to pay so much for a cup of coffee and complementary food items. Moreover, it has been noticed that generalized standards for most of the products of Starbucks has also diminished its market reputation in many developed economies. This has resulted in financial losses for the Company. Besides, as Starbucks’ products are imitable, competitors often gain the competitive advantage. This is yet another weakness of Starbucks.

Opportunities

Despite weaknesses, Starbucks has the opportunity to expand its business through the process of expanding in developing markets where the concept of coffeehouse chain is relatively new. The case study of Starbucks marketing essay reveals that the Company also has the opportunity to diversify its business by expanding its product and service line in a thorough and effective manner. It is noteworthy that, Starbucks also has the opportunity to establish partnerships and alliances with other firms to penetrate into new markets in developing and emerging economies.

Threats

Competition offered by low-cost coffee sellers should be considered as the primary threat to Starbucks’ global business. Moreover, it has been observed that as Starbucks’ products are imitable, low-cost coffee sellers can eventually win the competition on many occasions. Besides, the case study of Starbucks marketing essay also reveals that independent coffeehouse movements in different countries have also posed serious threats to the flourishing business of Starbucks on a global basis. Such threats have to be addressed and mitigated if Starbucks wishes to sustain its global strong market hold.

Starbucks Marketing Essay PESTLE Analysis

Political Environment

Political environment plays a crucial role in determining the fate of a business both in the short run and long run. This holds true for Starbucks too. The case study of Starbucks marketing essay reveals that the regional integration of markets in the era of globalization has helped Starbucks immensely to spread to different economies in an effective manner. Such integration of regional markets has provided opportunity to Starbucks to venture into newer markets that are more profitable for Starbuck’s business. But it should be noted that opaque governmental policies in certain specific developing nations have put hindrances to the spread of Starbucks’ business in those countries. This should be considered a threat to Starbucks’ business in such developing countries.

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Economic Environment

High growth rate of the economy of developing countries has provided opportunity to Starbucks in terms of business growth and expansion into new and potential markets that are highly profitable. Moreover, the case study of Starbucks marketing essay reveals that the declining rate of unemployment in different emerging economies has also added to Starbucks’ advantage. This has allowed Starbucks’ to secure a strong workforce that is highly productive. But it should be noted that the rise in labor costs in suppliers’ countries has posed serious threat to Starbucks’ global business.

Social/Socio-Cultural Environment

The growing affinity of the society towards embracing a coffee culture has allowed Starbucks to spread its business exponentially in different countries. Moreover, it has been observed that increasing health consciousness among the majority of members of different societies across the globe has provided opportunity to Starbucks to expand its product line and indulge in the production of healthy foods that may complement its coffee items. Besides, the emergence of an economically and financially sound middle class in different countries of operation has also added to the opportunities of Starbucks.

Technological Environment

The rise in the use of mobile phones and smartphones has allowed Starbucks the opportunity to develop applications that could make it easier for consumers to order Starbucks products online. This should be considered a business expansion scope for Starbucks. Moreover, the low cost of technology diffusion has allowed coffee farmers to grow high quality coffee beans and this has allowed Starbucks to enhance its product quality.

Legal Environment

Product safety regulations in many developed and developing nations where Starbucks operates has compelled the Company to produce quality coffee items and such enhancement in product quality has increased Starbucks’ profitability. The case study of Starbucks marketing essay reveals that, GMO regulations outside the United States have also provided opportunities to Starbucks to promote its products before a wide range of customers worldwide.

Environmental Factors

Integration of sustainable business practices and carbon neutrality have provided opportunities to Starbucks to establish itself as a socially and environmentally responsible business entity. This, in turn, has enhanced Starbucks’ profitability.

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