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A Competitive Strategy for Starbucks

While the firm has defined its primary mission as expanding market s hare by establishing and sustaining a defensible and premium market position and providing an uplifting experience that enriches peoples' everyday lives, it has become associated with a limited number of markets and a somewhat narrowly defined portion of those markets (Moran, 1999).

Moran (2001) stated that as of May 31, 2001, Starbucks reported consolidated net revenues of $204 million for a four-week period, an increase of 20 percent over net revenues of $171 million for the same period in fiscal 2000. As of May 27, 2001, Starbucks had 2,760 company-operated stores in continental North America, along with 758 licensed stores. Internationally, the firm had 244 company-operated stores and 541 licensed stores, for a total retail outlet profile of 4,303 locations. Overseas, Starbucks has stores in the United Kingdom, continental Europe, the Middle East, and the Pacific Rim. In addition to its Internet venue for selling coffee and tea products, Starbucks produces and sells bottled Frappuccino coffee drinks, a line of super-premium ice creams, Tazo Tea Company premium teas, and Hear Music compact discs รป with many products produced, distributed, and/or marketed through joint venture partnerships.

By locating Starbucks stores in high-traffic urban and suburban areas and initially limiting its ground and whole bean coffee sales to grocery stores in the Chicago, Illinois and West Coast region, via a licensing agreement with Kraft Foods, the company has as yet to penetrate many lucrative markets (Moran, 1999). The firm anticipated and has begun expansion of coffee sales into Wisconsin grocery stores and selected areas of the Northeast, but is noticeably absent in the South

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A Competitive Strategy for Starbucks. (1969, December 31). In LotsofEssays.com. Retrieved 10:39, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1706900.html