Starbucks: a business thesis

So long as Starbucks is concerned, the company is progressing by leaps and bounds. The company has operations in countries ranging from Australia to England. Moreover, a website to keep updated with the times was set up by the company in 2000. The aim of the business model followed by Starbucks, the largest coffee retailer in the world, was to achieve a global presence. Making a difference in the lives of people has been one of Starbuck’s main agenda. Starbucks is the largest international coffee retailer and is far ahead of its competitors. The reason can be attributed to the fact that the company is committed to maintaining the same standard of quality and efficiency that it had been following earlier. The company has also recognized the importance of bringing in new technology to the business. Modern technology has ushered Starbucks into an era of global domination, as far as the coffee industry is concerned.

The goal is slowly but surely seeing the light if one looks at the results and the statistics displayed by the international retail outlets and chains of Starbucks. The success of the company has also brought in an unexpected opportunity: many companies are now willing to partner with Starbucks to position themselves better.


Vision is an integral part of any global or local business model as the very foundations of the organization is built on vision. The company wants to market itself as the coffee company which delivers the best aroma, taste, and quality. The aim can easily explain why the company uses only the best coffee beans while brewing the coffee. The company also desires that the consumers leave the Starbucks Café, with a smile on their faces.  In short, the company desires that the consumers be delighted with the coffee, and should come back for more. It wants the consumers to recognize the excellent taste and remember the coffee, even after they have drunk it. However, one aspect of the company is quite dismal. Starbucks is unable to state precisely which business it is in. It assumes that these details would not make a difference to a renowned brand like Starbucks.


The uncompromising attitude of the company says it all. The company has pledged not to compromise on the quality, quantity, taste, and aroma of the coffee. The mission is to be the premier provider of the best coffee throughout the globe. Without a set of principles and a clear goal, none of the success that Starbuck’s enjoys currently could have been possible.

Identifying the Approaches and the Strategy of Starbucks

Every retailer and every store has been given their due share of importance. The management of Starbucks understands the fact that to grow big one needs to start small. Every billboard and advertisement is considered essential for the progress and image of the company. One of the critical strategies of Starbucks is to change along with the time, market conditions as well as internal or external factors. The ambiance of each store is carefully looked upon and made as per international standards. The objective is to give a friendly atmosphere to the consumer when he comes in to enjoy his coffee. The management of Starbucks also takes care that every store and retail outlet benefits the neighborhood and the community at large, to position itself in the minds of consumers. ‘Mystery Shoppers’ or people employed by Starbucks to evaluate the quality of the stores make sure everything is up to the mark and report immediately if there is any problem.

To expand into new geographies and to project itself as a ‘glocal’ brand (global and local) is one of the main objectives of management of Starbucks. The company uses several strategies to achieve these means by introducing new products in their stores, expanding international operations as well as enhancing their distribution channel even deeper and further. The company also wants to project the coffee lounges of Starbucks as the ‘Third Place,’ first place being home and the second, the office. They want the place where they can be entirely at solace with themselves, a place where people can relax free from stress. Moreover, Wi-Fi facility is now available inside every Starbucks Store in the United States. The company also installs CD burning facilities to entice consumers.

Swot Analysis


The reputation and its services are its prime assets. It is a global coffee brand having about than 9000 outlets in almost 40 countries. The year 2007 saw Starbucks feature in the Fortune Top 100 Companies. Strong values and ethics are the foundations on which the company is built upon.


The possibility that the innovative approach followed by Starbucks may not click in the future. The critics of Starbucks often argue that the company has too many cafés in the United States: the company’s home country. It is bad for business as the risks of being in a single market are very high. It is suggested that Starbucks should invest in a host of countries to spread the risk evenly. The price of Starbucks is high if compared to its competitors.


Many opportunities exist, and Starbucks is keen on capturing them. To cite an example, a CD burning service has been made available on a trial project, in Santa Monica, where consumers have the option to create the music of their choice. Fairtrade products, examples of new products and services can be retailed in outlets.

The global operations can be enhanced further. New markets like Pacific Rim countries and India are looking optimistic for the coffee major. Giving the franchise option is open. Starbucks can also avail the benefits of partnering with local manufacturers of food and drinking products.


The company faces a lot of competition from local and foreign competitors. The rise in the price of dairy products and coffee is taking a toll on the company’s balance sheet.

Many counterfeit brands have entered the market raising the threat of further competition.


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