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Starbucks: Case Study Analysis
Shilpa Adavelli

Starbucks Coffee Company is North America's leading roaster and retailer of specialty coffees. Headquartered in Seattle, WA, Starbucks has more than 15,000 stores in 50 countries. Financially, Starbucks has had solid earnings and returns The Company's objective is to establish Starbucks as the most recognized and respected brand of coffee in the world. To achieve this goal, the Company continues to rapidly expand its retail operations, grow its mail order and specialty sales operations, and selectively pursue other opportunities to leverage and grow the Starbucks brand through the introduction of new products and the development of new distribution channels. The company is expanding its empire overseas. Japan was Starbucks' first expansion outside of North America. Starbucks also plans to open coffee bars in Singapore. In the year 2010 Starbucks ranked 241 amongst fortune 500 companies.
In this case, Starbucks is faced with the issue of how it should leverage its core competencies against various opportunities for growth, including introducing its coffee in McDonalds, pursuing further expansion of its retail operations, and leveraging the brand into other product areas. Innovation is what is driving growth in Starbucks. Starbucks has a tremendous appetite for cash since all its stores are corporate, and investors are betting that it will be able to continue its phenomenal growth so it needs to walk a fine line between leveraging its brand to achieve growth while not eroding it in the process.
Every company has to focus on existing and new markets and existing and new products to increase sales. As a part of new product innovation Starbucks came up with new products like Frappuccino, Tiazzi and Tazo Teas in existing markets. As a part of market expansion, they are expanding into Barnes and Nobles, airports and airlines. They are also diversifying by introducing bottled Frappuccino.
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