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TableofContents

IntroductionofStarbucks

DevelopmenthistoryofStarbucks

ProducutofStarbucks

StarbucksinChina

SWOTAnalysisofStarbucks

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1.introductionofStarbucks

StarbucksCorporation(SBUX)isaninternationalcoffeeandcoffeehousechainbasedinSeattle,Washington.Starbucksisthelargestcoffeehousecompanyintheworld,with17,009storesin50countries,includingover11,000intheUnitedStates,over1,000inCanada,andover700intheUnitedKingdom.

Starbuckssellsdripbrewedcoffee,espresso-basedhotdrinks,otherhotandcolddrinks,coffeebeans,salads,hotandcoldsandwichesandpanini,pastries,snacks,anditemssuchasmugsandtumblers.ThroughtheStarbucksEntertainmentdivisionandHearMusicbrand,thecompanyalsomarketsbooks,music,andfilm.Manyofthecompany'sproductsareseasonalorspecifictothelocalityofthestore.Starbucks-brandicecreamandcoffeearealsoofferedatgrocerystores.

2.DevelopmenthistoryofStarbucks

Starbuckshasalwaysbeenaplacewhereyoucanfindtheworld’coffeesbst.Butin1971,you

wouldhavehadtotravelallthewaytoouronlystoreinSeattle’shistoricPikePlaceMarke

1970s

ThefirstStarbucksopens.ThenamecomesfromHermanMelville’sMobyDick,aclassicAme

novelaboutthe19thcenturywhalingindustry.Theseafaringnameseemsappropriateforastorethat

importstheworld’sfinestcoffeestothecold,thirstypeopleofSeattle.

1980s

HowardSchultzjoinsStarbucksin1982.WhileonabusinesstripinItaly,hevisitsMilan

espressobars.Impressedwiththeirpopularityandculture,heseestheirpotentialinSeattle.He’s

right–aftertryinglattesandmochas,Seattlequicklybecomescoffee-crazy.

1990s

StarbucksexpandsbeyondSeattle,firsttotherestoftheUnitedStates,thentheentireworld.Afterbecomingoneofthefirstcompaniestoofferstockoptionstoitspart-timeemployees,Starbucks

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becomesapubliclytradedcompany.

2000s

TheStarbucksphaenomenoncontinues.Asofthiswriting,Starbuckshasmorethan6,000locationsinover30countries.

DubHayasseniorvicepresident,GlobalCoffeeAuthoritythisNovember

3.ProductofStarbucks

Beverages

Espresso

(Hotespresso/Icedespresso)

Frappuccino

(Blendedcoffee/Blendedcream/Blendedjuice)

Coffeeandtea

(Brewedcoffee/Tea/Otherfavorite)

Food

Breakfast

(HoneyRaisinScone/HoneyRaisinToast/BlueberryDanish/FrenchCroissant)

Afternoon

(NewYorkCheesecake/BlueberryCheesecake/ChocolateTruffleCake)

Otherfood

(Minihoneyraisinscone/MiniChocolateMuffin/MiniApricotFinancier/MiniMarbleCheeseCake)Tea

Chinesetea

(MudanWhiteTea/JinxuanOolongtea/BiluochunGreenTea)

Exotic

(EarlGrey/Chai/EnglishBreakfast)

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4.StarbucksinChina

4.1DevelopmenthistoryinChina

StarbucksCoffeeInternational(SCI)enteredChinamarketin1998withtheopeningofitsfirststoreinTaipei,Taiwan.ThefirstStarbucksstorelocatedinmainlandChinawasopenedinBeijinginJanuary1999throughalicensingagreementwithMeiDaCoffeeCo.Ltd.Tosupporttheacceleratedexpansionintomainlandandachievegreaterpenetrationthroughouttheregion,theStarbucksGreaterChinaSupportCenterwasestablishedinShanghaiin2005.Sincethen,attheendofQ4fiscalyear2010,therearemorethan750StarbuckslocationsthroughoutChina,includingHongKong,MacauandTaiwan.

4.2SpecialproductstomeetthedemandinChina

InordertogainalargeshareinChinesemarket,StarbuckshastoworkoutplanstodevelopnewproductstocatertheconsumerdemandsfortraditionalChinesefestivals.Followingaretheproducts:

ConbineChineseteatowesterncoffeetocreateawonderfulflavorpopulartobothChineseandwesterners.

ChineseZongzi(traditionalChineserice-Pudding)onDragonBoatFestival.

MooncakeonMid-autumnFestival.

Specialfoodandcupsduringspringfestival

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5.SWOTAnalysisofStarbucks

STRENGHSWEAKNESSESInnovativebusinessmodelTheshortofcapitalBrandadvantageHighpriceTechnologyadvantageHighconcentrationlevelNewproductdevelopmentandinnovationLackofdiversificationConsideratecustomerserviceStorelocationadvantageOPPORTUNITIESTHREATSE-businessCompetitorsCostraisingexpanditsglobaloperationsThethreatofnewenters

Strengths

(1)Businessmodelofagilechoice

Starbucksisgoodataccordingtodifferentmarketsituationsallovertheworldtakeagileinvestment

andcooperationmode.

(2)Brandadvantage

Makefulluseofthe"thirdlifespace"typeofexperience.Inthecenteroftheconsumerdemandfrom

productstoservice,intheservicetotheeraofexperience,Starbuckssuccessfullycreatedatocreate

"Starbucksexperience"forthecharacteristicsofthe"coffeereligion",Starbucksandgeneralcoffee

shopdifferentplacesisendowedwithacupofcoffeemorerichexperienceanddeepercultural

connotation.

(3)Technologyadvantage

Starbuckshasalwaysbeenthepursuitofqualityexcellence,adheretoprovidecustomershigh

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qualityproducts.InordertoletallloveStarbuckscanenjoythemostpurecoffee,Starbucksisverycriticalanddemandingforrawmaterials,whetherthetransportationofcoffeebeans,baking,preparationorfinallyputthecoffeeendtothecustomerofthethatmoment,everythingmustcomplywiththemoststringentstandards.Inaddition,Starbuckshasmorethan30moneyhand-madeespressoandcoffeeinhotdrinks,coffeespeciesdiversity,bothpure,alsohaveinstant;BothItalianandLatinAmericantaste,tomeetthedifferenttastesofconsumers.

(4)Newproductdevelopmentandinnovation

Starbucksintheinnovationhasbeenwalkinginthefrontofthecoffeechain,fromcappuccino,frappuccino,coffeetastebeerandothernewcreativegreatsuccess,totheinvestedheavilytoespressoextractiontechnologyresearchanddevelopmentsuccess,allshowthattheStarbucksininnovationhasalotofadvantages.

Starbucksisalsointheinternationalizationandlocalizationbetweenseekanaturalfusion,inMarch2010,Starbuckswillbeunique"Starbucksexperience"furtherextendstotheChineseconsumersfavoriteteadrinksfield,whichcontainsChineseteaandexoticteatwokindsofteaproducts,includingnineprecipitatedintheglobalteadrinkStarbucksontherichexperience.

(5)Consideratecustomerservice

Intheserviceprocess,Starbucksimplementa"constantsystem"ofthe"onetoone",reallysincereserviceforclientconsider.

(6)Storelocationadvantage

Fullyoccupythefavorablebusinesscircle.Forcoffeeretailsector,goodlocationissetupshopaveryimportantcomponentofsuccess,Starbuckscoffeeinthestorelocationisinthecenterofthebasicchoiceorprosperousbusinesspeoplecrowdedsections,andstrivetomakecustomersanytime,anywherecanfindStarbucks.

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Weaknesses

(1)Theshortofcapital

WheneverStarbucksplantoopenanewshop,itwouldalwaysbeputinthemostprosperouslocationofthecity.JustinShanghai,itneeds2millionstoopenanewshop.Itmeansthathowtosolvethedemandofcapital,laborandreserveresourcesisabigchallengeforStarbucks.

(2)Highprice

ThepricelevelofStarbucksishigherthancorporationsinthesameindustry.Itconcentrateondevelopingthehigh-endproductandgiveuptheprofitfromthelow-incomepeople.Itwillleada

highriskforStarbucks’dailyoperation.BecauseOnce

(3)Highconcentrationlevel

TheorganizationhasastrongpresenceintheUnitedStatesofAmericawithmorethanthreequartersoftheircafeslocatedinthehomemarket.Itisoftenarguedthattheyneedtolookforaportfolioofcountries,inordertospreadbusinessrisk.

(4)Lackofdiversification

Theorganizationisdependantonamaincompetitiveadvantage,theretailofcoffee.Thiscouldmakethemslowtodiversifyintoothersectorsshouldtheneedarise.

Opportunities

Starbucksareverygoodattakingadvantageofopportunities.

In2004thecompanycreatedaCD-burningserviceintheirSantaMonica(CaliforniaUSA)cafewithHewlettPackard,wherecustomerscreatetheirownmusicCD.

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Newproductsandservicesthatcanberetailedintheircafes,suchasFairTradeproducts.

Thecompanyhastheopportunitytoexpanditsglobaloperations.NewmarketsforcoffeesuchasIndiaandthePacificRimnationsarebeginningtoemerge.

Co-brandingwithothermanufacturersoffoodanddrink,andbrandfranchisingtomanufacturersofothergoodsandservicesbothhavepotential.

e-business.

Starbuckshasthecouragetotrysomethingchallengingandinnovative,forexample,the

constructionof‘thethirdspace’,takingadvantage-business.ofe

Threats

Afterrapidlyexpanding,thereexistapotentialriskthattheburdenofsetnewcooperatechainis

heavy.Atthesametime,becauseFranchiseeisnotallowed,operatorscan’twaitforbene

itsinitialfee.Therearealotofcompetitorsinpotentialandreality.

What’smore,nooneknowsifthemarketforcoffeewillgrowandstayinfavorwithcustomers,orwhetheranothertypeofbeverageorleisureactivitywillreplacecoffeeinthefuture.Starbucksarefacingwithtreatsasfollows:

(1)Costraising

Starbucksareexposedtorisesinthecostofcoffeeanddairyproducts.

(2)Thethreatofnewenters

SinceitsconceptioninPikePlaceMarket,Seattlein1971,Starb

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