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Company Starbucks Marketing Report Produced byNames1.Student Number:9 Name : Grace2.Student Number:1 Name : Ann3.Student Number:2 Name : Tom4.Student Number:8 Name : Serena5.Student Number:16 Name : AnnaReport date : 2014/12/10Group :Grace Date: December 10, 2014 Executive summaryThe purpose of this report was to identify a suitable for Startbucks to introduce into a target market. As part of this process a strategic analysis was conducted to the environment. Strategies that mitigated threats and weakness and ones that took of these strategies a suitable new product was then developed.The booming of Chinese economy nourishes a broad coffee consumption market. Against this macroeconomic background, Starbucks puts the Chinese market into the first place of its overseas market except American market. Starbucks has made great business achievement in Chinese market, while it is also challenged by the devaluation of Startbucks’ brand and the downgrade of its core competitiveness. based on the background, product and environment analysis and strategy making ,analyses on many related literatures, this paper researched on the Startbucks’marketing strategies, analyses Startbucks’operating environment both internally and externally and summarizes the marketing strategies of Starbucks in china.The report was based on information from a range of data sources, including Star bucks’ websites and the magazines about this company。
SWOT Analysis of StarbucksGiven by group: GeilivableGroup members: 刘德欢0093075 罗睿棋0093111周丽丽0093120 孙玉0093112Background:Starbucks Corporation (SBUX) is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 50 countries, including over 11,000 in the United States, over 1,000 in Canada, and over 700 in the United Kingdom.Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.Strengths:•Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year.•It is a global coffee brand built upon a reputation for well products and services. It has almost 9000 cafes in almost 40 countries. •Starbucks has a very low rate for the loss of its top managers. They give various ideas for their products.•Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce. •Starbucks’ product is not just coffee, but the experience for coffee: atmosphere management, soft music, warm light and so on. •Starbucks uses the mode of flexible investments and cooperations according to the different market situations around the world. It always uses the direct way to sale its products.•The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all facets of our business.'•Starbucks always locates in the crowed mal so that it gives the consumers the good coffee as well as the space to have a rest.Weaknesses:•The short of capital:Whenever Starbucks plan to open a new shop, it would always be put in the most prosperous location of the city. Just in Shanghai, it needs 2 millions to open a new shop. It means that how to solve the demand ofcapital, labor and reserve resources is a big challenge for Starbucks. •High price:The price level of Starbucks is higher than corporations in the same industry. It concentrate on developing the high-end product and give up the profit from the low-income people. It will lead a high risk for Starbucks’ daily operation. Because Once•High concentration level:The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.•Lack of diversification:The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.Opportunities：•Starbucks are very good at taking advantage of opportunities.•In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD.•New products and services that can be retailed in their cafes, such as Fair Trade products.•The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge.•Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.•Starbucks has the courage to try something challenging and innovative, for example, the construction of ‘the third space’, taking advantage of e-business.THREATAfter rapidly expanding, there exist a potential risk that the burden of set new cooperate chain is heavy. At the same time, because Franchisee is not allowed, operators can’t wait for benefits rely on its initial fee. There are a lot of competitors in potential and reality.What’s more, no one knows if the market for cof fee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future. Starbucks are facing with treats as follows:•Cost raising:Starbucks are exposed to rises in the cost of coffee and dairy products. •The threat of new enters:Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the market entry of many competitors and copy cat brands that pose potential threats.•CompetitorsMainland China market existing Taiwan Shang Dao coffee, Japan really pot of coffee, and other coffee later into china ,Starbucks coffee among all as its biggest competitor, "coffee wars" royalties have become inevitable.Starbucks mission statement is 'Establish Starbucks as the premier purveyor of the finest coffee in the world.’ Facing with the competition from the coffee industry, the convenience store, fast food restaurant and coffee machine, Starbucks have a long way to go in the future.SolutionInternal:•Starbucks should take price discrimination strategy, which means it should offer products with different price levels for people with different income level.•Starbucks should set up a road map to achieve diversification, not only sell coffee , but also the cake, fruit salad and so on.•Starbucks should have regular research for the better understanding of its competitors and better service for its consumers.External:•Consolidate the relationship with government to strengthen the competence of the corporation among Chinese market.•To get a strong financing ability, Starbucks should consolidate its relationship with commercial banks and some other financial institutions.。
文章标题：Starbucks: A Global Icon of Coffee CultureStarbucks, a household name synonymous with coffee, has evolved from a small Seattle-based coffee shop to a global retail giant. Its journey is a remarkable testament to the power of a strong brand, quality products, and innovative marketing strategies. This essay explores the rise of Starbucks, its impact on coffee culture, and its continued relevance in the modern world.The genesis of Starbucks dates back to 1971, when three friends—Jerry Baldwin, Zev Siegl, and Gordon Bowker—opened the first store in Pike Place Market, Seattle. Initially, the store specialized in selling high-quality coffee beans and equipment. However, it wasn't long before customers expressed a desire for a place to enjoy their coffee, leading to the introduction of espresso-based beverages and a cozy atmosphere.The key to Starbucks' success lies in its ability to create a unique and inviting experience for its customers. From the moment customers enter a Starbucks store, they aregreeted by the familiar aroma of coffee, the cozy atmosphere, and the friendly staff. The store's interior design, often featuring warm tones and inviting seating areas, encourages customers to stay and enjoy their beverages. Additionally, Starbucks' commitment to using only the finest coffee beans and fresh ingredients ensures that each cup of coffee or beverage tastes exceptional.Another crucial aspect of Starbucks' success is its innovative marketing strategies. The company has always been at the forefront of leveraging technology to enhance the customer experience. For instance, the introduction of mobile ordering and payment options has made it easier for customers to order their favorite beverages on the go. Furthermore, Starbucks' loyalty program, which rewards customers with free drinks and other perks, has been a successful tool to increase customer retention and brand loyalty.Moreover, Starbucks has also capitalized on its brand recognition by expanding its product line to include a range of food items, merchandise, and even digital content. This diversification has not only broadened the company'srevenue streams but has also further strengthened its position as a lifestyle brand.The influence of Starbucks on coffee culture is undeniable. It has single-handedly revolutionized the way people consume and perceive coffee. Before Starbucks, coffee was often seen as a quick and utilitarian beverage. However, Starbucks transformed it into an experience, a ritual, and even a social activity. People now associate coffee with relaxation, conversation, and community, and Starbucks has been at the forefront of this cultural shift. In conclusion, Starbucks has become a global icon of coffee culture, thanks to its commitment to quality, innovative marketing strategies, and ability to create unique and inviting experiences for its customers. As the company continues to expand its reach and diversify its offerings, it remains a powerful example of how a brand can not only succeed commercially but also shape culture and influence people's lives.**星巴克：咖啡文化的全球象征**星巴克，这个与咖啡同名的家喻户晓的品牌，已经从西雅图的一家小咖啡店发展成为全球零售巨头。
我们的星巴克使命激发并孕育人文精神—- 每人，每杯，每个社区。
我们每天实践的理念原则：我们的咖啡我们一直追求卓越品质，并将永远如此。
我们致力于通过以道德采购的方式购买高品质的咖啡豆，精心烘焙，并提高种植者的生活水平。
我们积极地关心着这一切；我们的工作还任重而道远。
我们的伙伴我们称彼此为伙伴，因为这不仅是一份工作，而是我们的激情所在。
我们拥抱多元化一起创造一个可以自由工作、发挥所长的场所。
我们永远相互尊重维护对方的尊严。
我们将始终以此作为彼此相待的标准。
我们的顾客我们全身心地投入，我们和顾客真诚沟通，分享快乐，并提供振奋人心的生活体验哪怕只是片刻时光。
当然，这一切都是从承诺制作一杯完美的饮品开始，但我们的工作远不止于此。
我们工作的真正核心是联结彼此我们的门店当我们的顾客感受到一种归属感时，我们的门店就成了他们的港湾，一个远离外界纷扰的空间，一个与朋友相聚的处所。
它使人们得以享受不同生活节奏带来的快乐——时而悠闲自得，时而步履匆匆，任何时候都充满了人文气息。
Our Starbucks Mission StatementOur mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.Here are the principles of how we live that every day:Our CoffeeIt has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work isnever done.Our PartnersWe’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.Our CustomersWhen we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about humanconnection.Our StoresWhen our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always fullof humanity.我们的社区每家门店都是所在社区的一部分，我们认真承担邻里之间的应尽责任。
星巴克英文介绍范文第一篇：星巴克英文介绍范文Starbucks is an international coffee and coffeehouse chain based in Seattle, Washington.Starbucks is the largest coffeehouse company in the world, with 15,012 stores in 44 countries.Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans.Many of the company's products are seasonal or specific to the locality of the store.Starbucks-brand ice cream and coffee are also sold at grocery stores.星巴克是设在西雅图，华盛顿国际咖啡和咖啡馆链。
星巴克是世界上最大的咖啡馆公司与15,012 店在44 个国家。
星巴克销售滴咖啡、浓咖啡的热饮、其他冷热饮料、小吃、和杯子和咖啡豆等项目。
许多公司的产品都是季节性或特定于存储的地方。
在杂货店也卖了星巴克品牌冰淇淋和咖啡。
From Starbucks' founding in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly.In the 1990s, Starbucks was opening a new store every workday, a pace that continued into the 2000s.Domestic growth has since slowed, although the company continues to expand in foreign markets and is opening seven stores a day worldwide.The first location outside of the United States and Canada was established in 1990s, and theynow constitute almost one third of Starbucks' stores.从星巴克的创始在西雅图作为本地咖啡豆焙烧炉和零售商，公司得到了迅猛发展。
STARBUCKSFROM 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 GraphFirst 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 thateffective 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. T ake 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 sometraditional 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 customersBesides 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 industryAlthough more and more famous coffee brands come up in the world, the consumers to choose coffee pay more attention to brand, so the industry barriers to entry is high.➢➢the threat of substitute productsThere are substitutes for coffee such as fruit juice, milk, soda, and tea, and so on. But because of Starbucks coffee can provide the experience, to provide customers leisure places. More importantly, in today’s china, Starbucks is luxury consumption for a small group of people,rather than the general public. So this power is weak too.➢the intensity of competitive rivalryAs we mentioned above, there are plentiful society competitors. It’s obvious that this competition is fierce. But as the same to the second point, Starbucks try to use its strategy to solve this problem.According to Porter's Five Forces Model, it’s easy for us to find out that the strategy of Starbucks is effective. However, more and more coffee brands pay attention to the customer experience, it’s essential for Starbucks to achieve strategic continuity.。
STARBUCKSFROM 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 GraphFirst 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 thateffective 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. T ake 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 tocreate 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 fitamong 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 customersBesides 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 industryAlthough more and more famous coffee brands come up in the world, the consumers to choose coffee pay more attention to brand, so the industry barriers to entry is high.➢the threat of substitute productsThere are substitutes for coffee such as fruit juice, milk, soda, and tea, and so on. But because of Starbucks coffee can provide the experience, to provide customers leisure places. More importantly, in today’s china, Starbucks is luxury consumption for a small group of people, rather than the general public. So this power is weak too.➢the intensity of competitive rivalryAs we mentioned above, there are plentiful society competitors. It’s obvious that this competition is fierce. But as the same to the second point, Starbucks try to use its strategy to solve this problem.According to Porter's Five Forces Model, it’s easy for us to find out that the strategy of Starbucks is effective. However, more and more coffee brands pay attention to the customer experience, it’s essential for Starbucks to achieve strategic continuity.。
