As the company just started with small coffeehouses in the United States, until after six fruitful years when the company grown by having 165 locations in 1992. But that time Starbucks was still a small player in the coffee business as it was proven by the report that was presented by SCAA (Specialty Coffee Association of America) that during the year 1992, there were already 2,250 coffee shops in the US and Starbucks only has a thin 7% market share.
But after the company have decided to go public that has created a huge increase in market share, like buying small chains of coffee shops, particularly, Seattle's Best Coffee and Torrefazione Italia, and the aggressiveness of the company to build new locations each year. Until by 2005 when the company grown rapidly and that year it already has 7,300 in the US and a total of 10,500 coffee shops globally. From that tremendous growth, it follows that the company also has increase its market share dramatically.
That is why from its $7.7 billion sales in 2005, the company has a whopping market share of 70% or almost one third of world total in terms of revenues and more than half of the global share of 52% in terms of location, where people easily can see Starbucks coffee shops in most busy areas. (Tracy, P 2006). Major Countries and the number of coffee shops in each of the thee Main Geographical Region where Starbucks is in operation are the following:
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1. Asia-Pacific geographical Zone These are the major countries around the world that has licensed Starbucks International Stores to operate.(Starbucks Corporation: Competing in a Global Market 2003). Recommendation It is very obvious that the only recommendation is for the company to continue to perform its business by respecting the men and women of the company which they have developed and improved through the years. Another one is their close anticipation and study in the market, the company must further improve it in order to continue to promote competitiveness.
Conclusion As a conclusion, it shown in this study that Starbucks has been a very successful company that mainly focus on how they treat their people.
This also shows that with their close attention to its customers and the continuing respect to the need of its customers, it has been the main key to its success. This is also a big lesson not only to new and aggressive companies but also existing companies that there are no way a company will not grow if only they look and respect the people who works hard for the company and secondly is on how the company should focus mainly on investments that really matters a lot for the business is the most important things that need to be prioritized.
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Archive for the China market entry strategy category. (2007). UNICON – China Market Infiormation. [online] available from ;http://unicon. co. nz/blog/archives/category/china-market-entry-strategy; [accessed 16 February 2008]
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Starbucks Global Market Share. (2018, May 31). Retrieved from https://phdessay.com/starbucks-global-market-share/