Thursday, May 30, 2019
Starbucks Coffee :: Starbucks Coffee Case Study
Starbucks CoffeeTable of ContentsIntroduction 3 output Analysis3Product Overview3Market Structure4Competition5Dunkin Donuts7Krispy Kreme3McDonalds8Panera Bread8Elasticity EstimatesPricing Strategy10Forecast12Determants of Demand13Forecast Model15Forecast Summary15Works CitedIntroduction With the economy in trouble, the sprout market tanking it is important to start your day with a good cup of coffee to take on these challenges. Can Starbucks sustain it business pretending and place in the market? The paper examines Starbucks business and it respective practices.In 1971, the original Starbucks opened in Pike Place Market in Seattle, majuscule by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their focus was to sell coffee beans and equipment. They purchased green coffee beans from Peets, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buying coffee beans directly from the growers. In 1983, an e ntrepreneur by the name of Howard Schultz joined the conjunction Schultz matt-up that the company should sell coffee and espresso drinks as well as coffee beans. The partners felt that selling coffee and espresso drinks would take away from their primary focus of selling coffee beans. Since the idea did not work, Schultz started his own company called II Giornale coffee prevention chain in 1985. In 1987, the original owners of Starbucks sold their chain to Schultzs II Giornale. Schultz changed II Giornale outlets to Starbucks chains and quickly began to expand.Starbucks coffee has grown into the largest coffeehouse company in the world with 16,120 stores in 94 countries such as in Australia, Canada, China, Puerto Rico, etc. Starbucks has thirty blends and single origin coffee. Starbucks brand coffee can overly be purchased in local stores to brew at home. Starbucks employs over 140,000 employees worldwide with over five million customers a week. At one point they had emb lematic customers coming in on an average of six times a month while loyal customers come in on an average of xviii times a month spending averaging $50. Starbucks is one of Fortune magazines hundred Best Companies to work for in 2008 and is Business Ethics 100 Best Corporate Citizens for the fourth year.Product AnalysisProduct OverviewStarbucks product line has grown to include fresh brewed coffee, hot and iced espresso beverages, coffee and non coffee unify beverages, Tazo tea, baked pastries, sandwiches, and salads. Starbucks paraphernalia includes coffee grinders, espresso machines, coffee brewers, music CDs, books, movies and gift cards.