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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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