Last Updated 28 Jan 2021

Starbucks: Business Details, Marketing Strategies And Analysis

Essay type Research
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Table of contents

    Company information:

    Company name     Starbucks
    Sector                      Coffee shop

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    Founded                 31.03.1971
    Founder(s)               Jerry Baldwin, Zev Siegl, Gordon Bowker
    IPO date                  Friday, 01.07.1994
    Location                  Seattle, Washington, US

    Fundamentals and financials:

    Revenue                              $19.16 billion
    Operating income             $3.6 billion
    Employees                          238000
    Net income                         $2.76 billion
    Total assets                         $12.45 billion
    Total equity                         $5.82 billion
    Company management: Howard Schults (Executive Chairman), Kevin Johnson (President and Chief Executive Officer)

    Out of all global retailers currently involved with selling specialty coffee, Starbucks may be the most deserving of attention. It's the largest chain that sells coffee, and just like the majority of other huge businesses, it rose from very humble beginnings.

    Its story began in 1971 when a single store opened. Fast forward to now, there are over 24 thousand storefronts and the company has established itself as the gourmet beverage chain.

    The brand starkly contrasts with other companies that occupy similar market areas. Although Starbucks always tries to distinguish itself from others by providing classy service and high-quality materials. Explore more about the enterprise with this list of materials.

    Financial Data

    Profits can be in part attributed to the high price point, but the financials go way deeper than that.

    Total revenue of $21 billion (with gross profit of roughly $13 billion) speaks a lot about the successful strategy of this venture.

    Even though Starbucks is largely reliant on the American market, approximately ¾ of business is conducted in the NA segment; it is not even a problem in the grand scheme of things. With total assets estimated at $4,7 billion, this company sits comfortably at the top of coffee retailing.
    More on balance sheets and statements below.

    Marketing

    Over 200 people are involved with Starbucks’ marketing. These specialists are in charge of promoting new product campaigns via a variety of channels: social media, print advertising, events, promotions and direct marketing.
    Starbucks is often cited as being home away from home, and everything the company does is aimed at creating a cozy and convenient environment.

    First and foremost, focus on the product is maintained. Which, in turn, generates attention from premium customers.
    On top of that, the funding for marketing initiatives gets increased each year, and it’s likely to reach a mark of $400 million per year.
    Associated details below.

    Structure and Operations

    A sufficient workforce is required in order to serve a variety of high-quality coffee and beverages to clients. The company hosts 240 thousand employees working all over the globe. Curiously, every employee is labeled a “partner” internally. Seems like a trivial detail, but it goes to show that Starbucks’ policies are based on mutual respect. This venture came up with a courteous system of interaction and considers their “partners” to be an invaluable asset.
    Corporation avoids franchising and keeps every single of their stores in personal possession.

    More about structure and operations can be found below.

    Analysis

    This chain aims to maintain its success and grow exponentially.
    The company received widespread recognition as being the top coffee retailer in the world. Hence why it’s time to get into the nitty-gritty of their operations.

    Starbucks requires a huge supply base to deliver and maintain deliveries, so how does the company retain its scale and keeps a competitive edge?
    Even though the company heavily relies on the US market for the majority of its profits, there is a healthy presence in 60 countries.

    There are countless objectives and strategies at play here, all that’s left of you is to find suitable material to dive right in.

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    Cite this page

    Starbucks: Business Details, Marketing Strategies And Analysis. (2021, Jan 28). Retrieved from https://phdessay.com/starbucks-essay-sample/

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