Analysis Report on Star Bucks Company

1a. Brief Star Bucks Company Explanation

1b. General Environment of Star Bucks Company

1c. Competitive environment of the Star Bucks Company

1c.1 Competitive Rivalry of Star Bucks Company

1d. The strengths and weakness of the Star Bucks Company

2.      Formulation of Star Bucks Company

2a. Porter’s generic strategies of Star Bucks Company

2a.1 Explain the three general types of strategies.

2a.2 Pitfalls of Star Bucks Company

2b. Diversification in creating value of the Star Bucks Company

2b.2 Use of Concepts in Star Bucks Company

2c. International strategies of the Star Bucks Company

2c.2 Evaluate using CAGE in Star Bucks Company

The story of star bucks was started in 1971. At that Time Company is dealing in the basic coffee, tea, spices and whole beans in one store in the one location. Millions of customers are come to our door step on daily basis and in more than 50 countries we are located in more than 17000 places. Our5 mission is to nurture and inspire the sprite of human being, at a time one neighborhood, one cup and one person. Our main concern is to provide best coffee to all people. Using the ethical sourcing practices, our main target is to make all the coffee bean that are harvested in the superior quality standards. We use quality beans on our roasting plants and with the signature of star buck roast, its experts maintain a balance in the taste and develop excellent flavor.

Star Buck Company is dealing in multiple products on the demand of our customers. It includes fresh food, merchandise, handcrafts beverages and most important is coffee.freash food include fruit cups, yogurt parfaits, oatmeal, salads, sandwiches and baked pastries. Its merchandise includes gift pack and reading material, music, package goods, all accessories with coffee mugs, brewing of tea and coffee equipments. Hand crafted beverages include vivanno smoothies and TYazo teas, coffee and non coffee blended beverages, hot and ice espresso beverages and fresh brewed coffee.  more than 30 blends and signal main Arabian coffee with high demand  and multiple consumer product that are using in more than 13 countries are categorize into three types are star buck ice cream, ready to drink and coffee and tea.  Its star buck brand portfolio mention  in torrefazione Italia coffee, Tazo tea, Seattle’s best coffee and star buck coffee. (http://globalassets.starbucks.com, 2019)

Current performance of the Star Bucks Company

The current performance of the company is very attractive and remarkable. Each interaction is unique and every customer receives a drink from star buck barista. It’s a connection between customer and company that in one time of moment that one hand is going to present on counter to provide the other hand. It is our business responsibility is to get engaged all our customers and communities in a commitment that provide coffee and other items of excellent quality in the world. We try to make every new place a innovative place for our customers so it present that company is very much loyal with its customers and present great care and attention for their customer and try to maintain long term relationship with them. Because the better relationship with customers enhance the life of organization and it will generate the product for its customers in long period. (starbucks.com, 2019)

            Pest analysis is used by the star buck company that how the company is going to effected with the environmental factors how that effect the working of the organization. PEST includes the political, economic, social and technological factors of environment of the Starbucks. The environment of the star buck is going to change its environment toward the company due to declaration of war. Risk of changing in import law must be present and many areas of production and company process. Starbuck also face criticism from the different organization to get those high-quality beans that grown and market with special conditions and the economic recessions also affect the sales and revenue of the company. The mission statement of the star buck also explain its environmental needs as in all facets of our business, the star buck is committed to a role of environmental leadership. Company also follows the principles of environmental effects are measuring and monitor the progress and encourage all partners to share the mission of the company, as a corporate value instilling environmental responsibilities, recognizing the fiscal responsibilities, focus on selling, use and buy the environmental friendly products, sharing all information with partners, develop flexible and innovative solution and clearly understand the environmental issues.   To increase more profit and serve more customers in few minutes’ company is going to replace the labour operated machine with automatic machine and by using new and latest technology the more customers going to attract towards the organization.    (ukessays.com, 2016)                                                                                                                                                       

 There are many competitive rivalries present in the same product market of star buck but the main thing is that it has maintain its taste and its way of present the product so its customers also get satisfaction with the services and product quality of the company. In the competitive environment there are many threats face by the company but with them also many opportunities face by the organization to improve its performance and its revenue growth. Its opportunities and threats are defined with the help of SWOT analysis. The opportunities of the company include in Asia, Africa and Middle East the expansion of company; starbucks also open its more than 1500 store in china and this popularity is very much important in the Middle East and Africa where the presence of the stores of star bucks is very low. Ways of distribution means company is going to introduce new order providing techniques that consider as mobile pour and considers as major benefits in drive more revenue and improve the distribution system. Technology advance meant means that star buck app is also used in many mobiles that create friendly environment for customers and also give them reward. Offerings and enhance the product mix means that star buck is going t increase its variety of product like tea or fresh juices. Starbuck also working in the emerging markets for expansion its business opportunities. The threats of the company include brand limitation, change of life style and preferences, increase competition, the price of coffee beans and economy of the developed country. These are closely affecting the performance of the company and also going to work as hurdles in the progress of the company. (WHITE, 2019)

There are many strengths and weakness of the company related to its internal environment. Its strengths include being first and its uniqueness, personal values of star bucks, its high-quality products, innovation, global brand recognition and strong market position, advertisement, star buck product mix and its HR management. With strengths there are also some weaknesses that are bear by the company and try to handle the weaknesses in better ways. Weakness of the star buck include depend on the US market; different clashes appear in the coffee cultures, cannibalization and expensive product that are going to produce in the company. (LOMBARDO, 2019)

Starbuck is the largest organization in the premium coffee of brand that perform a great role of coffee lovers and run thousands of stores in the overall world. It is going to become a leading coffee chain in many countries. Starbuck also obtain experience of connected customers to maintain and develop a long term relationship with its customers. it offer fine quality coffee that develop a strong emotional attachment with the customers. Lots of benefits also provided to customers with the usage of reward card of star bucks. It help in building loyalty and make the purchase more easier for the customers. For its coffee, star buck is going to used fine quality beans and to meet that supplier company travel a lot to maintain its standards. And the advance technologies and advance machinery used by the company also enhance the quality of the products and attract more and more customers so they want to maintain their link with the company and always want that product for use. (colt, 2019)

There are three general types of strategies given by the porter that are very much helpful in obtaining in competitive advantages of the company. The sustainable competitive advantages include focus, differentiation and cost leadership. The strategy of differentiation describes as the product quality and services that are going to deliver must be unique and valuable for the customers. to gain a sustainable competitive advantage the product differentiation is the basic strategy of star buck. The focus is also very important in this regard because company main focus the actual requirement of the customer because when they are going to deal with their requirement then they have to obtain the trust of the customers. The cost leadership of the organization is also very important because there are many factors determine by the organization to handle the cost effectiveness of the organization. (colt, 2019)

Company is also used that same generic strategy that issue by the porter because there are following the same strategies for their product development and success of business. The three generic principles support the working of the organization and also enhance its credibility. Through excellent customer experience and quality coffee the star buck offers such differentiation. With its trained staff and the location and view of stores is design very well so the experience of star bucks is achieved. A compare to independent coffee houses the star buck’s stores provide a more welcoming décor with friendlier baristas. (colt, 2019)

When the firm is going to start multiple businesses within its boundaries then it is going to implement the diversification strategy. Star buck has continued to diversify their business in order to gain competitive advantages from its inception, which is originally created to provide high end coffee product. With coffee they also offer multiple products of beverages that have large variety include bottled water, soft drink and many more. In compliment with their high quality coffee they offer breakfast option, wraps and sandwiches. These options have increase the revenue of company as they can  maintain their strong and positive reputation as their revenue belong to their main product coffee and other product that  are offer by company and by bundling and sharing these related activities. (wordpress.com, 2013)

 There are also many threats related to the implementation of new product as sometimes it is also happened that the multiple product of a successful organization not successful in the market and their main products only become the cause of attraction for the customers. in such cases company has to face a loss of sufficient amount because its overall investment on new product going to finished and with this it’s also effects its reputation that is very important in the market.

In the global market, star buck is known as the oldest product company and modify them into lasting brands, differentiated and value laden. Manu product of the star buck is going to become different from others because of low cost that offers a sustainable competitive advantage and source of potential. To overcome external environment changes, the low cost of producing the imitable differentiated products make the star buck famous in the international market. The replication of the differentiated product is very much difficult because they include extraordinary services, exceptionally high quality, innovative designs, based on technological capability and unusual positive brand image. With each cup of coffee they are going to charge the differentiation cost from their customers. they give more attention on market penetration, providing socially attractive and positive environment, offer high quality product with realization of profitability and creating great network of environment. (ivypanda.com, 2019)

The company has to use proper implementation strategies to enter in the international market because already many strong competitors present in the market and people are very much interested in the existing brands so company has to follow the strategy related to marketing mix strategy to move at global level. These strategies include following points like client satisfaction, brand marketing, perfect and innovative coffee cup, third place, smart partnership and the creation of star buck communities. Start buck give more attention on the global business expansion mission and proper planning and study must be done before starting the business. They collectively with their partners start the business just like local market but must consider the international process of business at global level.