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Tuesday, September 27, 2005

Starbucks Case Study Analysis

Starbucks enjoyed phenomena growth; net sales for fiscal year 1996 have rocketed to $696 million. This marks the ninth consecutive year that Starbucks revenue has increased by 50% or greater (Starbucks.com). The company's objective is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the company plans to continue to rapidly expand the business through new distribution channels. The US coffee market is considered saturated, with bigger chains facing threatening competition among themselves and also from smaller coffee bars. Additionally, the increase of coffee costs lead to lower margins, intensifying competition in what has become a crowded market. Recognizing this, Starbucks has turned its attention to foreign markets for continued growth, especially the Asia-Pacific Region (Starbucks.com).





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