Business Report
Starbucks
By Nadia, Sabrina, Vincent
Date: May 18, 2006
The Main Business Activity
 Coffee
 Cookies
 Cake
 Chocolate
 Some other snacks
 Starbucks CDs
 Coffee makers and affiliated equipment
The Professional Background
Starbucks in Taiwan –
President Coffee Corporation
Starbucks all over the world
The Overall Vision for the Company
 The 6 Starbucks mission statements
 The 7 environment mission statements
 Social Responsibility
Starbucks overview
 Turnover:24million (in Taiwan)
 Position on 2005 Fortune 500 list: # 338
 Typical customer: 33 million customers
worldwide per week.
 Locations: Starbucks is in 35 countries.
Starbucks overview
 Turnover:24million (in Taiwan)
 Position on 2005 Fortune 500 list: # 338
 Typical customer: 33 million customers
worldwide per week.
 Locations: Starbucks is in 35 countries.
State of the Market
Growing steadily each year
Over 7,500 stores around the world
Revenue is growing by 20% a year
Opening approximately three stores
every day
Next target market: China
Market Position
 Up market
 A cup of coffee costs more than NT$100
 The Starbucks Experience:
products, service, music, environment, etc.
Target Market
 Adults with incomes, college students, etc.
 Savvy and avid coffee drinkers
 Customers who enjoy the “Starbucks
Experience”
Current Major Competitors
 The other coffee shops that sell similar
coffee at a much more competitive price.
 Local copycats of Starbucks in Taiwan
e.g.. Barista Coffee (西雅圖極品咖啡)
Advertising & Promotion
 Little advertising and promotion after break
into a new market
 Focus on the training and farewell of
employs
 To enhance the service quality  happy
customers  more customers
(Word of Mouth)
Locations
1. Downtown
a. where there are many people & heavy
traffic
b. in business center or shopping district
2. Large stations or rest areas
Starbucks SWOT
 Strength: A popular and famous brand, a coffee-chain giant,
knowing how to sell affiliated products
 Weakness: The selling price is not cheap
 Opportunity: Developing strategic alliances with other catering
trade.
 Threat: Lots of replacement products, Business administration
is easy to be imitated by other coffee shops
The Required Property
 Factories:
Canned coffee, coffee ice cream,
hand-made cookies, and cakes.
 Special Property:
Coffee makers, Starbucks staff
Goals, Strategic issues, and Expansion
 Goals:
Short-term goal: Making more locations in 2006
(note: Starbucks does not have franchise)
Long-term goal: Be as recognizable a brand as Coke.
 Strategic issues:
Technology affects supply chain issues and
proprietary roasting techniques.
Choose most appropriate long-term strategy to grow
sales and profitability.
Goals, Strategic issues, and Expansion
 Expansion:
Will open more locations in Taiwan for achieving a
great turnover
Extend their branded product line and make some
products available in retail markets (e.g. selling
coffee, ice cream, cookies in 7-11.)
Develop more strategic alliances (e.g. Chinatrust
bank).