Business Report Starbucks

1
Business Report Starbucks

• By Nadia, Sabrina, Vincent
• Date May 18, 2006

2
The Main Business Activity

• Coffee
• Cookies
• Cake
• Chocolate
• Some other snacks
• Starbucks CDs
• Coffee makers and affiliated equipment

3
The Professional Background

• Starbucks in Taiwan
• President Coffee Corporation
• Starbucks all over the world

4
The Overall Vision for the Company

• The 6 Starbucks mission statements
• The 7 environment mission statements
• Social Responsibility

5
Starbucks overview

• Turnover24million (in Taiwan)
• Position on 2005 Fortune 500 list 338
• Typical customer 33 million customers worldwide
  per week.
• Locations Starbucks is in 35 countries.

6
Starbucks overview

• Turnover24million (in Taiwan)
• Position on 2005 Fortune 500 list 338
• Typical customer 33 million customers worldwide
  per week.
• Locations Starbucks is in 35 countries.

7
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

8
Market Position

• Up market
• A cup of coffee costs more than NT100
• The Starbucks Experience
• products, service, music, environment, etc.

9
Target Market

• Adults with incomes, college students, etc.
• Savvy and avid coffee drinkers
• Customers who enjoy the Starbucks Experience

10
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 (???????)

11
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)

12
Locations

• Downtown
• a. where there are many people heavy
  traffic
• b. in business center or shopping district
• 2. Large stations or rest areas

13
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

14
The Required Property

• Factories
• Canned coffee, coffee ice cream,
• hand-made cookies, and cakes.
• Special Property
• Coffee makers, Starbucks staff

15
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.

16
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).