Strategic analysis of Starbucks Corporation

2.0 Internal and external environment of Starbucks Corporation

Perhaps to get a better idea on the internal and external factors in regards to Starbucks
Corporation necessary challenges should be identified.

2.1 Challenges towards external environment

External factors are recognized as outside sources where these relevant terms can
work as a challenge. As a result essential factors can be categorized into three main
categories

1) Possible competitors – Even though Starbucks is most famous for coffee and
building establishments rather effectively show the competitive nature of coffee
market. In regards to this food manufacturing industries like Dunkin donut and
MacDonald has proven there mark within the industry through initiation of a
coffee brand which can be considered as a competition and a challenge towards
Starbucks.

2) Technological factors – Technological factor can be considered as an industry

changing product as more and more customers are reluctant towards technological
demands. Starbucks as a company as failed due not investing in technology.

3) Economic factors – Economic factor is a crucial point when it comes to possible

challenges as due to market strategies been revolutionized day by day which
affect an industry like Starbucks due to inability to generate income.
2.2 Challenges towards internal environment

1) Employees inability to perform regularly – One of the few reasons is most of the recruits
are college students where they choose a part time work if possible with no real passion
towards a relevant industry which suggest challenges due to employees inability to
perform.

2) Lack of ingredients – Starbucks has opened establishments all across the globe and if
even one store doesn’t able to store ingredients would be a bad sign for the entire
Starbucks Corporation.

3) Inability to follow safety guidelines due to pandemics like COVID 19 – Due to COVID
19 protocols necessary guideline must be followed by customers and the staff so if each
of these doesn’t follow guidelines that would be a reason for Starbucks to lose a potential
customer.

3.0 Core competencies of Starbucks and how they can be used for succession

Core competencies are a reliable source in terms of delivering revenue and overall
succession to a relevant industry. Despite this possible competencies for Starbucks
can be categorized as follows,

1) Most importantly the best core competency that can be identified in terms of
Starbucks trademark product “Coffee” at various establishments in affordable
 price range – This trademark factor is an essential influence where the brand
name of Starbucks to reach possible goals coffee needs to be extra special.

2) Starbucks attitude toward good ethics practice – ethical practices like honesty,
integrity, fairness and respect for others can go a long way in terms of a business.
This strategy is used by many industries as consumers tend to look for good
ethical practices where more customers are been generated on a daily basis.

3) Quality service by following health & safety protocols – This is one of the
valuable term if an industry wants to be successful during this period of time due
to COVID 19 pandemic people doesn’t want to deal with businesses who doesn’t
follow necessary COVID guidelines as necessary. While Starbucks follow
necessary protocols consumers are likely to return in next time where succession
could follow along.

4) Furnished establishment & internet facility towards customers – People of all

racial ethnicities enjoys Starbucks where they tend to go into Starbucks premises
to have a coffee and spend some quality time. Through furnished establishment
this gives vibrant atmosphere. In other words technology is an important attribute
and for a business to supply internet facility is a huge deal towards customers
where 75% of them likes to enjoy coffee while browsing through social media
platforms.

5) Innovation of new products – Starbucks tend to change their menu regularly

which symbolizes succession overall as other coffee industries doesn’t stand a
chance with Starbucks as they initiates new ideas with menu trying new varieties
of products as people like to enjoy.
4.0 Identification of key industry developments and their impact

Necessary developments in industries can be an evolving strategy which can be

adopted by many business as this impact the general public what sorts of products
and necessities are to look for. As a result key development and their overall
impact can be suggested as follows,

1) Social media advertising – One of the key industry developments can be

identified as social media advertising where most of the businesses tend to use
social media advertising in order to promote products and other necessities.
Due to this method of using social media platforms this can be impacted even
to a relatively new business to generate more sales. In regards to Starbucks if
they properly advertise new products this method can eventually grow sales.

2) Social media influencers – Social media influencers are key part of industry
developments as influencers generate millions of followers through social
media platforms where they also advertise about up and coming businesses.
Starbucks relates that teenagers are the most consumers of Starbucks and
through social media influencers teenagers can be advised with related news
in terms of new products and sources.

3) Digital analytics – Normally consumers are always trying new things online
where they could be familiar with digital analytics where this allows for new
trends and facilities. This can be considerably due to industrial development
as certain aspects can be developed more thoroughly and evidently which
Starbucks as a corporation can rely on technologies like these to allocate new
 trends discovered by Starbucks as a chained corporation as consumers are
been advised through industrial developments like digital analytics.

4) Listen to your customers – One of the intricate parts of key industry

developments is identified as listening to your customers as they are the ones
who derives business goal by buying necessary products. By conducting
quantitative research a business can identify what sorts of privileges would be
needed by them to satisfy their needs. Despite this businesses conducting
these surveys will eventually understand what is there to be done in order to
achieve necessary business goals.

5) Competitor observation – In this case cooperation like Starbucks have the

opportunity to observe competitors in terms of what products are been served,
what sorts of products are customer favorites, what business strategies are
been influenced to generate income. After observing these concepts Starbucks
as a cooperation can make its business better than the competitor.

5.0 You need to produce a report on whether or not the current strategy
of the company will remain appropriate in the view of the changes in the
industry and success of the current strategy. Your report must make use
of reliable evidence and appropriately selected methods of evaluation.

Strategy is determined as a business trick where most of big industrial

companies use to benefit certain companies to achieve business goal by
following a strategy. Importantly when considered to strategy used by
Starbucks is market penetration to gain necessary results of maximizing
company gross profit by using the same current strategy. In this case same
menu is been used no any relevant changes done towards them.
 According to this current procedure allocated by Starbucks the necessary
barriers of market penetration cannot be breached as the industry keep on
changing and evolving with new and improved businesses with quality
business strategies. Necessary implementations should be done in order to be
adjusted to the current system of growth where Starbucks as a cooperation to
generate revenue.
Necessary evaluation methods is necessary in terms of Starbucks where they
can attained valuable concepts there to build a new strategy which can
contribute towards market penetration with a technological mindset.
In order to build a strategic concept these necessary steps should be followed
where Starbucks as a cooperation can grow in stature due to changes in
industry,

1) Necessary business goals should be recognized.

2) Necessary steps should be taken to challenge competitors.
3) Consumer targets should be defined where new products are been released
in terms of customer generation.
4) Necessary strategic business decisions should be made.
5) Relevant strategy should be short term as new strategies can be
implemented with evolving technologies.
6) Necessary strategies should be executed within the right means of business
strategies where Starbucks as cooperation can generate by following a
well structured strategy.

According to above report necessary evaluation has been done according to

necessary implementation where various changes are done within the industry to
construct a strategy in order to derive necessary implementations.
6.0 You are also required to identify the strategic position and value preposition of
the company. (1, 2, 3 above) who are they 1. How old is the business 2. Market share
3. Market spread/ geographical presence 4. Financial position 5. No. of outlets /
employees etc.

Who are Starbucks Company?

Starbucks cooperation is an American industry established in 1971 in the heart of Seattle

where the main source of business is recognized as coffee. There is no other coffee
distribution in the world that can come close to Starbucks where they generate a tons of
coffee towards potential consumers.

How old is the business

Starbucks cooperation is celebrating its half century which can be considered relatively
new considered to other companies which has been dating back centuries.

Market share of Starbucks

Around 25% coffee market share in the United States is governed by Starbucks industries
which can be highlighted as the highest number. Other coffee market generators doesn’t
supply to 1/3 of the market share is controlled by Starbucks. In addition to this Starbucks
is ranked a successful cooperation in terms of second highest market shares which can be
a drastic measure.
Market share of Starbucks

Market share can be an influential factor in terms of Starbucks as a business which

records its overall succession through market share where they can come to a conclusion
to take necessary guidelines to develop market share as a percentage. Globally this is
recorded at a 37% percentage which is can be withdrawn as a successful market share.

Financial position of Starbucks

Financial position give away the necessary inclusions how the cooperation in a whole is
doing financially where necessary annual reports can be withdrawn in supply of this
condition. According within the year 2021 financial standards have gone up which is
drastic measure considered to what happened within industries due COVID pandemic
situation. Fiscal reports 2021 suggest the revenue in terms of Starbucks cooperation is
estimated at 28.5 in 2020 to 29.3 billion dollars in 2021.

Number of Starbucks outlets and employees

Starbucks outlets are mostly identified in United States even though this has been spread
throughout the world as well.18,000 Starbucks stores are found on us soil while almost
33,000 Starbucks stores are been scattered throughout the globe. In some extend
Starbucks has been able to fulfill job opportunities towards people where 350,000
employees are been joined with the Starbucks venture.
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