• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Starbucks analysis. Starbucks Coffee in Malaysia. Starbucks face some challenges of modifying their existent strategies to gain and sustain their competitive advantage in a rapidly changing environment.

Extracts from this document...


EXECUTIVE SUMMARY In this assignment, the organization that has been chosen is Starbucks Coffee in Malaysia. Starbucks face some challenges of modifying their existent strategies to gain and sustain their competitive advantage in a rapidly changing environment. As a store manager, below are some tools using in Starbucks which its internal and external environmental analysis been evaluated thru: * PESTLE analysis * Value Chain analysis * SWOT analysis In order to compete with other competitors, have proposed several marketing strategies to the Managing Director, in which Starbucks may aim its sales at the young crowd, focusing more on the quality of its products and services to improve its profitability and achieve its long-term business vision and mission. Through the analysis tools stated above, am required to evaluate three strategic options which are available in Starbucks, and then select one of the options evaluated that gives the best fit strategic option which can help Starbucks to strengthen its position and sustain its growth either locally or globally. CASE IN POINT: STRARBUCKS Starbucks is recognized as the most successful coffee chain in the past few years and has operated its business from a coffee bean seller to one of the world's most familiar coffee houses. ...read more.


Because of the quality of the products that they offer, Starbucks prides itself by offering limited coffee products that customers cannot come across in other coffee houses. TYPES OF PRODUCTS AND SERVICES Starbucks buys and bakes high-quality whole bean coffees and sells them, with fresh-brewed coffees, cold blended beverages, Italian-style espresso beverages, various quality teas, pastries, sandwiches, ice-creams, mostly through its outlets. A variety of ready-to-drink beverages are produced, and Starbucks licenses its trademark through outside channels such as licensed stores, which known as specialty operations. In addition, heated-breakfast sandwiches and lunch packages are offered through its outlets. Furthermore, a free-high-speed access of internet via Wireless Internet Access (Wi-Fi) provided at every Starbucks outlets. Customers can bring along their laptops for internet-surfing, gathering with friends, and also doing their business while enjoying their favorite Starbucks coffee in a designed air-conditional and friendly environment. Berjaya Corporation also runs its first drive-thru in Setia Alam, Shah Alam. With this drive-thru service, customers would not have to hardly look for parking in the hassle parking place. TARGET MARKET When first Starbucks started, they targeted at college students, with a little higher than normal income levels, affording to consume a cup of coffee and spending time with friends at Starbucks outlets. ...read more.


If coffee turns out to be a trend, they must diversify their business where other competitors have invested in. Reliance on beverages innovation is another weakness. Starbucks' stocks are in long-term risk when a slowdown in market growth and this will cause a lower valuation. Starbucks' performance would be adversely affected by diminishing return from beverages innovation. OPPORTUNITIES: Starbucks faces several opportunities. One is the market-expansion in different market niche such as lodging its products to the youth, or sells to other companies which expand its market at lower cost than opening new outlets. Starbucks has also expanded its beverages into a Starbucks branded coffee liqueur drinks, such as liqueurs flavored with coffee. An overlap among consumers of liqueurs and consumers loyal to Starbucks brand gives the company a strong return. THREATS: The supply and prices of coffee are highly unstable. The factors such as weather and economic conditions may expose the quality standard of coffee and affect Starbucks' business. Worldwide coffee market is very competitive. Competitors of Starbucks consist of specialty coffee houses, restaurants, McDonalds and etc. Starbucks must be aware of competition among all levels and maintain its operational performance as it wishes to maintain its status as world's leading specialty coffee retailer. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Globalization - Coffee & Value Chain. What is the likely value chain of ...

    The coffees are traded separately based upon the type of processing it has undergone; whether the wet or dry method. More than 80% of coffee produced is traded internationally and is available to buyers either directly or in markets. International coffee traders have two methods of selling - either direct to a roster, or through a broker.

  2. Advance Professional Development

    interest rates * understand how the significance and impact of an organization's internal politics and business strategy can affect everyday work * keep up to date with current affairs affecting businesses Skills Audit for all seven individuals After filling the above skill audit form from all seven individual listed above,

  1. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    This will go a long way towards customer acquisition and retention. In a recent study it was found that the percentage of video consumed on a TV among video downloaders and streamers (some 52% of Americans age 12+ who have ever done so)

  2. New business plan

    during the 10-year period, June 1994-2004. During the 1996-2001 intercensal period, the growth rate averaged 0.8 percent per year. The estimated mean population for the year ended 30 June 2004 was 4,038,300 International passenger movements reached a new high during the year ended June 2004, with 7.8 million passenger movements in total.

  1. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    Product Product life cycle Products go through a number of stages from introduction to decline. This is known as the product life cycle. It is often plotted on a graph like the one on the left. Not all products go through all the stages; some go from introduction straight to decline.

  2. BP Financial analysis

    finding new oil reserves as quickly as it is using up current ones. However, most new oil fields are within the Middle East, and under the control of OPEC, and therefore inaccessible to BP. In the longer term, BP will need to adapt to diminishing oil reserves, and will probably increase investment in alternative energies to accomplish this.

  1. MG 309 Strategic Management

    level Strategy is being or can be practiced by organization: According to Berna: Product Differentiation is a competitive business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products and services relative to the perceived value of other firm's products and services.

  2. Business plan for Laundry Toaster laundry dryer.

    market at present and those which may stimulate or dampen market growth in the future. POLITICAL ? Weak Incumbent Gvt. ? Possibility of higher taxes in2012 ? Focus on ?family? unit ? Immigration Policy Reducing Lower Skilled Labour Force LEGAL ? National Minimum Wage ? Employee Rights ? Health &

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work