星巴克五力模型论文英文

Starbucks’s Strategy AnalysisPart Ⅰ.IntroductionStarbucks,the premier roaster and retailer ofspecialty coffee in the world,opens its first store byHoward Schultz in Seattle’s Pike Place Market in 1971.By2009, Starbucks already has 16,706 total storesworldwide,cover more than 50 countries,includingAustralia,Canada,UK,Germany,Japan,China and many other countries.Starbucks is committed to being a deeply responsible company in the communities where it does business around the world.t he Company’s focus is on sourcing high-quality coffee, reducing its environmental impacts and contributing positively to communities.The Company’s mission is to inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.Part Ⅱ.External analysisStarbucks’s 5 forces analysisFaced with rivals of high competitivenessStarbucks,as we know, purchases and roasts high-quality whole bean coffees and sells them,along with fresh, coffees,beverages,food items,teas.In the coffee offering industry.generally,its competitors can be divided as several parts:●Coffee multiple shops.Such as the famous UK’s Costa,Japan’s Doutor,Canada’s Second Cup,which have loyal customers in their countries and regions.for example,Europeans would like to choose Costa,while Japanese may be apt to Doutor.●Retail stores.In these stores,People can buy initial coffee at a cheap price,which has cost and economic advantage.●Beverage powder manufacturers.Nestle,the famous beverage powder manufacturer,with its high quality and good service,have loyal customers buy its product,meanwhile Nestle also has a good distribution.McCafe:New entrants eager to share the cakeMcdonald's ,the world famous fast food leader, opened its first coffee store named McCafe in 1993.At fist,Mccafe’s taste is not that satisfied by itster,inspired by the success of leaderships in coffee industry, Mcdonald's put coffee machines and invited coffee making specialists in its stores in 2005,,so customers can enjoy “super cure”coffee,it proved to be a success.Mcdonald's Latte and Cino Da Pistoia beverage has bring great profit.In 2007,a report showed that some Amercians even prefer McCafe more than Starbucks.In fact, McCafe’s “super cure” coffee is really not bad than Starbucks’s.Mcdonald's has more than 14,000 stores in Amercia,which is much more than Starbucks.the Starbucks’s total stores is 16meanwhile,the Mcdonald's price is also cheaper than Starbucks.Not only Mcdonald's,other same-business companies also have the ambitions to enter the market.With the advantage of their existing equipment,the existing brand and business,they just need to provide coffee,which means small cost,so they want to have a try.A variety of SubstitutesWhen it comes to coffee’s sisters and brothers ,we think about,milk,tea,milky tea,ice cream.And people in different areas may have different appetite,for example, people in Beijng prefer Chinese tea instead of coffee.And some people can’t bear the taste of coffee, they like mike and milky tea.Under this condition,how can Starbucks gain above average returns and competitive advantages than his rivals? Starbucks has expanded its business,especially in recent years. You can enjoy Starbucks food products, such as fresh pastries,tea,milk, breakfast sandwiches and lunch items purchased from national, regional and local sources.And in order to get to know the need of people, Starbucks do research and development teams are responsible for the technical development of food and beverage products and new equipment. The Company spent approximately $6.5 million, $7.2 million and $7.0 million during fiscal 2009, 2008 and 2007, respectively, on technical research and development activities, in addition to customary product testing and product and process improvements in all areas of its business. Gain sustainability supply of high-quality green coffeesAs a world famous coffee store,the most important thing,of course,is the obtain of coffee bean materials. The supply of gobal coffee bean is affected by many factors,including weather,policy and economy comditions.To help ensure sustainability and future supply of high-quality green coffees and to reinforce the Company’s leadership role in the coffee industry, Starbucks operates Farmer Support Centers in CostaRica and Rwanda. The Farmer Support Centers are staffed with agronomists and sustainability experts who work with coffee farming communities to promote best practices in coffee production designed to improve both coffee quality and yields.Starbucks also buys coffee using fixed-price and price-to-be-fixed purchase commitments, depending on market conditions, to secure an adequate supply of quality green coffee. For example ,as of September 27, 2009, the Company had $238 million of purchase commitments which, together with existing inventory, expected to provide an adequate supply of green coffee through fiscal 2010.The Company depends upon its relationships with coffee producers, outside trading companies and exporters for its supply of green coffee. The Company believes, based on relationships established with its suppliers, the risk of nondelivery on such purchase commitments is remote.High price,high customer loyaltyStarbucks retail stores are typically located in high-traffic, high-visibility locations. Because the Company can vary the size and format, its stores are located in or near a variety of settings, including downtown and suburban retail centers, office buildings and university campuses. The Company also locates retail stores in select rural and offhighway locations to serve a broader array of customers outside major metropolitan markets.Its target customer are business people,white colar,and lovers who can afford a higher fee.Because of the good service,and the standard management,people like Starbucks very much,they became the loyal customers,they would like to pay high fees in Starbucks.So ,it is high price, high customer loyalty.Internal analysisStarbucks’s Licensing —Retail stores, Packaged coffee,tea,Branded productsThe Licensing —Retail stores is obviously a main component of Starbucks’s tangible assets. As part of these arrangements, Starbucks receives royalties and license fees and sells coffee, tea and related products for resale in licensed locations. Product sales to and royalty and license fee revenues from US and International licensed retail stores accounted for 50% of specialty revenues in fiscal 2009. During fiscal 2009, net licensed store openings included 35 in the US and 305 internationally.Through a licensing relationship with Kraft Fo ods, Inc. (“Kraft”), Kraft manages all distribution, marketing, advertising and promotion of these products.The Company sells packaged coffee and tea internationally both directly to warehouse club stores, such as Costco Wholesale Corporation, and to grocery stores through a licensing relationship with Kraft in Canada, the UK and other European countries.The Company’s coffees and teas are available in approximately 39,000 grocery and warehouse club stores, with 33,500 in the US and 5,500 in International markets.The Company licenses the rights to produce and market Starbucks branded products through several partnerships both domestically and internationally.Intangible assets—Patents, Trademarks, Copyrights and Domain Names The Company owns and has applied to register numerous trademarks and service marks in the US and in many additional countries throughout the world. Some of the Company’s trademarks, including Starbucks, the Starbucks logo, Frappuccino, Seattle’s Best Coffee and Tazo are of material importance to the Company. The duration of trademark registrations varies from country to country. However, trademarks are generally valid and may be renewed indefinitely as long as they are in use and/or their registrations are properly maintained.The Company owns numerous copyrights for items such as product packaging, promotional materials, in-storegraphics and training materials. The Company also holds patents on certain products, systems and designs. In addition, the Company has registered and maintains nu merous Internet domain names, including “”,“”, and “.”Capacity:the fast growing company in the worldIn the view of commerce, Starbucks is a miracle.it is one of the best growing company in the world.It can be mainly summarized as two parts:●Financial●Human resourceIt has a good performance in the security market.After the hit of 2008 financial crisis,it fastly adjusted the routinue.We can see the K trend line in the picture.The retail stores are the most important of the company’s revenue,and from 2005 to 2008,the company has expanded its stores.And when the economic crisis comes,it has a reduction in 2009.The revenues from 2005 to 2009 are also good in general.From $6.4 in 2005 to $10.4 in 2008, it has increased 40%.(you can see the net revenue graph and new opening stores graph following)The fast growing can not witout the good human resource of the company. Starbucks employed approximately 142,000 people worldwide as of September 27, 2009. In the US, Starbucks employed approximately 111,000 people, with 105,000 in Company-operated retail stores and the remainder in the Company’s administrative and regional offices,and store development,roasting and warehousing operations.Approximately 31,000 employees were employed outside of the US, with 30,000 in Company-operated retail stores and the remainder in the Company’s regional support facilities and roasting and warehousing operations. The number of the Company’s employees represented by unions is not significant.Starbucks believes its current relations with itsemployees are good.People in the company share the same mission and vision.Core competitiveness：Company culture ,reputation&brand and Starbucks experienceStarbucks employed approximately 142,000 people worldwide , Starbucks’s employees share a good sense of the company culture.they know well the mission ,that is to inspire and nurture the human spirit –one person, one cup, and one neighborhood at a time. Starbucks also committed to doing business responsibly and conducting ourselves in ways that earn the trust and respect of customers, partners and neighbors. they call this Starbucks™Shared Planet™–their commitment to doing business responsibly. Within this, they have identified three areas of focus: ethical sourcing, environmental stewardship and community involvement.Starbucks believes it has built an excellent reputation globally for the quality of its products, for delivery of a consistently positive consumer experience and for its corporate social responsibility programs. The Starbucks brand has been highly rated in several global brand value studies.The Starbucks Experience is built upon superior customer service as well as clean and well-maintained Company-operated retail stores that reflect the personalities of the communities in which they operate, thereby building a high degree of customer loyalty.When customers sit in Starbucks stores they can not only enjoy different kinds of coffee tastes,they can enjoy the culture of coffee ,the stories and tales. SWOT analysisPrat Ⅲ.Business level strategy:“this is not a cup of coffee,this is a cup of of Starbucks”—differentiationIn business level, Starbucks choose differentiation stategy to gain strategic advantage and above average returns, Starbucks’s coffee have different kinds,its severice is so considerate,and the company advocate customer experience ,which are unique in the industry, here is the Starbucks’s measures:⏹Starbucks keep high level price to meet its differentiation strategy. Starbucks has a good knowledge of its customers,business people,white colars,lovers,the groups are likely to afford high price.⏹The Company sells special coffees to meet people’s need, including the Starbucks and Seattle’s Best Coffee brands, as well as a selection of premium Tazo teas, VIA and other related products, to institutional foodservice companies that service business and industry, education, healthcare, office coffee distributors, hotels, restaurants, airlines and other retailers. The majority of the Company’s sales in this channelcome through national broadline distribution networks with SYSCO Corporation, US FoodserviceTM, and other distributors. The Company’s total foodservice operations had over 21,000 accounts, primarily in the US, at fiscal year end 2009. Revenues from foodservice accounts comprised 23% of total specialty revenues in fiscal 2009.⏹The Starbucks Card program is designed to increase customer loyalty and the frequency of store visits by cardholders. Starbucks cards can be used in all Company-operated and most licensed stores in North America, and in a growing number of international markets. The cards have no expiration date and do not have any inactivity fees.⏹Starbucks made significant investments to improve the customer experience in its stores.The store partners have made measurable improvements in service, beverage quality and store condition. As a result show, over the year2009, they already high customer satisfaction scores have increased a full 10 percentage points.⏹Starbucks applied technology to revolutionize the way they communicate with consumers through social and digital media.Starbucks has been named the most engaged consumer brand, using communities such as Facebook, Twitter and My Starbucks Idea to connect with our customers outside the store environment. They are in constant dialogue with their customers, allowing them to understand customer’s needs and stay top-of-mind in this increasingly competitive retail environment.Starbucks also launched popular iPhone applications to help customers find our stores, determine nutrition information and reload their Starbucks Cards.With the above strategies, Starbucks can do better than his competitors. Starbucks have ability of bargaining of buyers ,because they know that “this is not a cup of coffee,this is a cup of of Starbucks”Corporate level strategy:approaching to moderate to high levels of diversificationAs a beverage severice company, Starbucks itself has many shortbacks as I have noted in the SWOT analysis above,for example,the ability to afford risks,the main question of the companyis that Starbucks faces intense competition in the specialty coffee market, which could lead to reduced profitability,and Starbucks financial condition and results of operations are sensitive to, and may be adversely affected by,a number of factors, many of which are largely outside the Company’s control.In the graph ,we can see that beverages still make up the largest part of all the retails,following by food, Coffee-making equipment and other merchandise and whole bean coffee. Starbucks gian main revenue also from its beverage service.During recent years, Starbucks entered CD making business,and Beverage-related accessories, including items bearing the Company’s logos and trademarks, are produced and distributed through contracts with a number of different suppliers. The Company also purchases a broad range of paper and plastic products, such as cups and cutlery, from several companies to support the needs of its retail stores as well as its manufacturing and distribution operations,and above, Starbucks has invested a film.However,the company has not invaded in other more challenging industries yet.We know that Pepsi is a good example of diversitification in food service industry, Pepsi is a global beverage leader manufacturer,and then Pepsi began to make chips and even have the ambition to enter into fashion industry.As a conclusion,diversitification is important to Starbucks.Diversification can help the company reduce its operation risks,especially in economic recessions or some uncontrollable situations.Starbucks may can learn from Pepsi,and do better in future,not only in beverage industry.。