星巴克案例英文分析STARBUCKS

STARBUCKS FROM Group6 房天仪 张思晗 何慧华 Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle Washington which opened its first store in 1971 The name comes from a classic American novel about the 19th century whaling industry The seafaring name seems appropriate for a store that imports the world s finest coffees to the cold thirsty people of Seattle Then Starbucks expands beyond Seattle first to the rest of the United States then the entire world in 1990s Starbucks entered China market in 1998 with the opening of its first store in Taipei Taiwan Since then there are more than 750 Starbucks locations throughout China including HongKong Macao and Taiwan With such a fast expanding speed shown in the below graph what makes Starbucks so successful From our point of view it lies in its strategies Performance Comparison Graph First of all what is strategy According to the paper written by Michael E Porter strategy is the creation of a unique and valuable position involving a different set of activities Competitive strategy is about being different and choosing a different strategic positioning From Porter s view there are three types of strategic positionings variety based positioning needs based positioning and access based positioning As to Starbucks mainly on the basis of needs based positioning it effectively combines the other two strategic positionings Needs based positioning means serving most or all the needs of a particular group of customers Just like the mission stated in its website Starbucks is going to inspire and nurture the human spirit one person one cup and one neighborhood at a time They are geared to the needs of customers and try to satisfy every customer even some potential customers who may just pass by As is shown in their 10 K report in 2011 to the SEC Starbucks has always believed that effective innovation is about responding to predicting and creating customers needs while staying true to their core values Starbucks is dedicated to providing each customer a unique Starbucks Experience The Starbucks Experience is built upon superior customer services as well as clean and well maintained company operated stores that reflect the personalities of the communities in which they operate thereby building a high degree of customer loyalty Firstly what we want to say is its quality Starbucks is passionate about ethically sourcing the finest coffee beans roasting them with great care According to their Form 10 K report to the SEC to ensure compliance with their rigorous coffee standards they control coffee purchasing roasting and packaging and the global distribution of coffee used in their operations They purchase green coffee beans from multiple coffee producing regions around the world and custom roast them to their exacting standards for their many blends and single origin coffees This king of high quality meets the demand of some specific customers who have a high request for the quality of the coffee And there are few coffee stores can achieve such standard From STARBUCKS CORPORATION Form 10 K for the Fiscal Year 2011 beverages account for most of Starbucks retail sales as well as whole bean and soluble coffees also for a small part which indicates its good performance of its coffee s quality Secondly their considerate service and convenience is also of great importance People have consumer packaged goods including both domestic and international sales of packaged coffee and tea to grocery and warehouse club stores They can have breaks from the worries outside so Starbucks have stores where you can meet with friends enjoying the elegant environment intimate services like the heat insulation paper and a variety of tables and chairs giving you a different mood According to their Form 10 K report to the SEC in 2011 their mainly competitors are quick service restaurants and specialty coffee shops However the combination of different kinds of service makes Starbucks an obvious advantage compared to them as well as customers loyalty Thirdly Starbucks as a multinational corporation their branch stores in different countries have their special products to meet local people s demands Take their Chinese branch stores as an example in order to gain a larger share in Chinese market Starbucks has to work out plans to develop new products to cater to the consumer demands for Chinese and some traditional Chinese festivals For instance they combine Chinese tea to western coffee to create a wonderful flavor popular to both Chinese and westerners What s more they also have Chinese Zongzi traditional Chinese rice pudding on Dragon Boat Festival and Mooncakes on Mid autumn Festival All of these can measure their needs based positioning Besides the needs based positioning Starbucks also uses variety based positioning According to the Porter s paper variety based positioning is based on the choice of products or service varieties which makes economic sense when a company can best produce particular products or services using distinctive sets of activities When it comes to Starbucks although they have some other products to meet different demands of customers they are still dedicated to providing high quality green coffee which is their most important business and they have a perfect coffee production chain What s more Starbucks also uses the access based positioning which means having a different set of activities to reach customers in the best way And this can be measured as follows As is shown in the Form 10 K report to the SEC in 2011 Starbucks has both company operated stores and licensed stores to make more people have access to its products What we can know from the Investors section on Starbucks website and the Form 10 K report to the SEC in 2011 Starbucks has 10787 US stores and 6212 international stores and licensed stores are accounted for nearly 50 They vary the size and format of their stores which allows them in or near a variety of settings including downtown and suburban retail centers office buildings universities campuses and in select rural and off highway locations And to provide a greater degree of access and convenience for non pedestrian customers they continue to selectively expand development of drive thru retail stores In addition they also sell products in some supermarkets and shopping mall which makes Starbucks easier to reach more customers Last but not least according to The Social Responsibility section of Starbucks website they are aimed to be a responsible company which makes them gain a very good reputation And we re sure that this strategy is especially important in today s China of course and many other countries Starbucks makes every effort to have a positive impact on the communities they serve They hold the view that every store is part of community and they take their responsibility to be good neighbors seriously Besides they re committed to offering high quality ethically purchased and responsibility produced products by using ethical sourcing What s more they try to minimize their environmental footprint protecting the environment In addition they promise to have global responsibility report which is beneficial to the investors society and some other shareholders To sum up Starbucks not only has a sustainable strategic position but also has the fit among their operating activities All of these have substantially reduced their cost and increased their differentiation making Starbucks a big success We have talked about the strategy and the measurement of these strategies Then we use the Porter s Five Forces Model to measure the force of this strategy Bargaining power of suppliers As having superior brand advantage Starbucks suppliers benefit from a good brand Long term cooperation with Starbucks will enhance the reputation of the supplier they may receive more orders On the other hand there are a plenty of Coffee bean suppliers in the world so that it s easy for Starbucks to buy the best coffee beans in the world So for Starbucks supplier s bargaining power is relatively weak Bargaining power of buyers of customers Besides coffee market competition is intense the world s coffee brand quality is also very good Buyers choices are very big so for Starbucks buyers bargaining power is relatively strong In order to make up for the defect as we said before Starbucks cultivate loyal customers According to Starbucks experience walking into Starbucks customers can not only enjoy the delicious coffee there will be a kind of very relaxed feeling It is this high quality products and satisfactory service of Starbucks that making it to have a big share in the international coffee market the threat of new entrants for an industry Although more and more famous coffee b