Ch. 2 - Strategic Planning for Competitive Advantage

Introduction

Starbucks is the largest coffee company in the world, Starbucks Corporation was founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker in 1971. It is the most successful coffee shop in the past few decades. Now Starbucks coffee are opened at world-wide in more than 60 countries. Starbucks selling coffee, coffee beans, snakes, cups and so on. Customers of Starbucks enjoy high quality of coffee, comfortable environment and relax atmosphere.

The SWOT.

1.S---Strength.

First of all, Starbucks has high visibility in the market.Starbucks is the symbolization of relaxation, enjoy and comfortable, it has special market strength. Starbucks’ coffee is not just a cup of coffee, coffee is just a carrier, actually, it is through coffee, give customer an unique style, the consumption of coffee is actually an cultural communication. Also, Starbucks provides high quality services to their customers. In additional, Starbucks has its own coffee beans supply chain to ensure that Starbucks can provide good quality coffees all year round.

2. W--Weakness.

 Even though there are many Starbucks retail store in the world-wide. Starbucks’ main market is in the USA, the stores didn’t distribute equally. Also. since Starbucks are very welcomed by customers, it is always very crowed in the store, sometimes a little bit noise.

    

3.O----Opportunities

    

        Since people’s living standard is increasing along with time, there will be more customers. In addition, Starbucks cooperate with some other brands such as TAZO, LaBoulange and so on, gives Starbucks more opportunities to expand their business to some other areas. In 2011, Starbucks changed their logo, they removed the text "STARBUCKS COFFEE" on the logo, represent that Starbucks are going to expand their business to more areas.

4.T----Threats. 

   

    There are many similar coffee houses emergence nowadays, these coffee houses are Starbucks’ competitors, even though they are not popular and strong as Starbucks, they gives customers more choices in the similar products and services.

Competitive advantages.

         First of all, Starbucks can maintain their high quality coffees by controlling the process of making a good coffee from materials to products, such as pick the coffee plants, coffee beans, choose how to toast the coffee beans, and so on. Also, because of the supply chain is all in the charge of themselves, Starbucks can make more profit while maintaining the quality of their coffees.

          Secondly. Starbucks has very good services. Starbucks have a course in training their staff to be qualified in making good coffee. Starbucks have very good environment, compared to some small crowed coffee shop, Starbucks have comfortable tables and chairs for their customers, there is also WIFI available for customers which make their customers’ life more convenient. 

          Third, compare to other coffee house,it is much easier for people to find a Starbucks retail store. Since Starbucks have so many retail stores in the US, when you want to grab some coffee, it is defiantly much easily for you to find a Starbucks than to find another coffee house. Especially in Manhattan, there are Starbucks all around street corners.

Chapter 01- An Overview of Marketing

Starbucks Coffee Company is an American coffee company and coffee house which was founded in 1971. At first, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) was drawn into Starbucks and joined a year later. in 1983, Howard traveled to Italy and he had a vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors. In 1994, they hired wright Massey as their store designer. Good quality of goods and service, clear market positioning, and positive marketing helps Starbucks growing quickly, and become a world famous brand. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection.Today, with more than 18,000 stores in 62 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world. 

Starbucks Coffee Company puts efforts in environmental impact. That reduces the amount of trash and turns waste into wealth. In 2004, Starbucks began reducing the size of their paper napkins and garbage bags. And their polypropylene cups use 15% less plastic and create 45% carbon emissions than a cup made from PET. In 2009, the Starbucks implemented a new water saving solution,they changed dipper wells with push button metered faucets for rinsing. According to the report, this new technology saves up to 150 gal of water per day in every store.They also put efforts in recycle. In 1999, Starbucks started a program called"Grounds for your Garden". That means Starbucks recycles used coffee grounds and use them as compost  in the garden.Now they use corrugated sleeves made from 60% post-consumer recycled fiber. and customers can get 10 cents discount if they bring their own reusable cups.That's is a method to remind people to bring their own cup and reduce the usage of the paper cups. Also, they use electric hand dryers instead of paper towels in their restrooms, which is friendly to the environment and reduce wastes of trees.

Starbucks mission statement: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.