(Starbucks Corporation: Public Company 1982-). This model continues to sustain Starbucks growth today.
An additional strategy Starbucks employs is licensing. Currently, the company has more than 900 licensed store locations at places including airports, Barnes & Noble bookstores, and grocery and mass-market retail chains such as Target, Albertson's, and Safeway stores. The company also has licenses with United Airlines and Marriott to exclusively serve Starbucks coffees. The benefit of this licensing strategy is to extend the Starbucks brand presence, but retain a higher degree of control than franchising. Starbucks charges a royalty on gross sales and a licensing fee to start up the business.
Finally, another critical component of the Starbucks strategy is product innovation. Its forays into books, movies and music demonstrate the company's continual search for ways to extend and enhance its product line, but with a careful eye to its brand and customer demographic. Yet it also carefully evaluates, and pulls back when it sees a new approach is not working, as can be seen from their exit from direct management of the Hear Music business.
Effectiveness of Starbucks Strategy
Despite the economic recession and the emergence of new low-cost competitors in the marketplace, the company's strategies focused on differentiation, continual product innovation, and carefully managed growth are proving effective: Starbucks posted record earnings in first quarter of FY2010. The company's consolidated net revenues increased by 9% to $2.5 billion, while at the same time, comparable store sales increased by 7% "driven by a 3% increase in traffic and a 4% increase in average ticket." (Starbucks Reports Record Second Quarter Earnings)
In 2010, Starbucks is beginning to open new store locations domestically again, in response to a rebound in domestic sales. It needs to proceed carefully to ensure that new stores do not cannibalize existing store revenues. However, in the big picture, Starbucks has captured less than 4% of the U.S. coffee market overall and an even smaller percentage of the global coffee market (Starbucks Outlines Strategy for Accelerating Profitable Global Growth, 2010), leaving room to continue carving out a larger gourmet coffee market share for itself and extending its brand into new markets.
The company has also recently begun experimenting with a new store concept that eschews the Starbucks name (other than a small "inspired by Starbucks" notation) in favor of a local coffee house feel and name, for example, the first of these stores is called 15th Avenue Coffee and Tea. This could be a viable strategy for capturing more of the gourmet coffee market and coffeehouse customer demographic that may have begun to suffer from potential "brand fatigue" and seeks more of an "independent" coffee house feeling.
Long-term, Starbucks can likely expect to maintain a strong performance and market growth, but at a more modest rate. Starbucks "is adept and knowledgeable when it comes to designing approaches to further their profits and market share while maintaining a close relationship with customers and their needs. Every aspect of their strategy has been carefully considered and thoroughly planned out." (Analysis of Starbucks). In spite of the more cautious consumer spending environment and new low-price substitutes that have recently entered the market, "Starbucks remains the dominant player in specialty coffee. Although we employees will sustain long-term performance.
Appendix 1 -- 1997-1992 Performance
Appendix 2: 2005 -- 2009 Performance
Appendix 3 -- Starbucks Stock Price
Retrieved from "http://www.articlesbase.com/coffee-articles/starbucks-coffee-the-history-and-background-of-starbucks-coffee-285998.html"
Analysis of Starbucks. Knol. Retrieved 23 April 2010 from the World Wide Web: http://knol.google.com/k/analysis-of-starbucks#
Bowman, B. (2008). Starbucks as Demographic Indicator. Maynard Institute, 11 September, 2008. Retrieved 25 April, 2010 from the World Wide Web: http://www.mije.org/bobbibowman/starbucks
Groom, N. And Bertlein, L. (2008). "Starbucks steps back from music business." Reuters. 24 April 2008. Retrieved 23 April 2010 from the World Wide Web: http://www.reuters.com/article/idUSWNAS968120080424
Howard Schulz. Wikipedia. Retrieved 23 April 2010 from the World Wide Web: http://en.wikipedia.org/wiki/Howard_Schultz
Investor Guide. "Starbucks (SBUX)." Retrieved 23 April 2010 from the World Wide Web: http://www.investorguide.com/stock-archives.cgi?date=032510
Morningstar. "Starbucks Corporation SBUX." Retrieved 23 April 2010 from the World Wide Web: http://quote.morningstar.com/Stock/s.aspx?t=SBUX
Starbucks. Wikipedia. Retrieved 23 April 2010 from the World Wide Web: http://en.wikipedia.org/wiki/Starbucks
Starbucks Company Timeline, Starbucks.com. Retrieved 23 April 2010 from the World Wide Web: http://assets.starbucks.com/assets/starbucks-timeline-basic-jan2010.pdf
Starbucks Coffee - the History and Background of Starbucks Coffee. 12 December 2007. ArticlesBase.com. [Public Information]. Retrieved 23 April 2010 from the World Wide Web: http://www.articlesbase.com/coffee-articles/starbucks-coffee-the-history-and-background-of-starbucks-coffee-285998.html#ixzz0lyKgI8Lb
Starbucks Corporation: Background 1971-1987. Retrieved 23 April 2010 from the World Wide Web: http://www.mhhe.com/business/management/thompson/11e/case/starbucks.html
Starbucks Corporation: Private Company 1987-1992. Retrieved 23 April 2010 from the World Wide Web: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-1.html
Starbucks Corporation: Public Company: 1992 -. Retrieved 23 April 2010 from the World Wide Web: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html
Starbucks Outlines Strategy for Accelerating Profitable Global Growth (2010). Starbucks press release issued 10 March, 2010. Retrieved from the World Wide Web 25 April, 2010: http://www.marketwatch.com/story/starbucks-outlines-strategy-for-accelerating-profitable-global-growth-2010-03-24
Starbucks Reports Record Second Quarter Earnings. 21 April 2010. Starbucks.com. Retrieved from the World Wide Web 23 April 2010: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle&ID=1415951&highlight=
Thompson, D. Starbucks Stock Perks Up With Via Sales. The Atlantic, 10 January, 2010. Retrieved 25 April, 2010 from the World Wide Web: http://www.theatlantic.com/business/archive/2010/01/starbucks-stock-perks-up-with-via-sales/33964/
The documents we provide are to be used as a sample, template, outline, guideline in helping you write your own paper, not to be used for academic credit. All users must abide by our "Student Honor Code" or you will be restricted access to our website.
Electronic Health Records The state of today's technology has transformed many of the methods and systems society uses to live and interact with one another. In the medical community, technology has also become a much larger part of how healing and the healing processes are carried out by health care professionals on a day-to-day basis. The purpose of this essay is to discuss how one piece of technology as represented by
Electronic Health Records Since the introduction of electronic health records, the U.S. government, information systems developers and associations of healthcare providers have worked toward establishing a uniform, integrated system of electronic health records. This collaboration is designed to significantly enhance patient safety and treatment, as well as effectively assist in the management of public health issues such as disease. While some health practitioners report difficulties in dealing with electronic health records,
Electronic Health Records The advent of technology has had an impact on almost every facet of our lives. Today, thanks to technology, the maintenance of patient records is becoming increasingly easy and efficient. In this text, I will concern myself with electronic health records (EHR). In so doing, I will amongst other things take into consideration the effect of EHRs on health care and the implications of adopting this technology from
Electronic Health Records The medical community has begun using electronic health records (EHR) as an alternative to paper records (Gunter & Terry, 2005). While there are many benefits to this, there are also concerns with hacking and security. Another concern is how patients get copies of these records, because they want to make sure that they are able to access information that is rightfully theirs. It should also be able to
Health Systems Management and Electronic Health Records Healthcare is an essential factor or tool in relation to the American society. The society of America has no national socialized healthcare system. In this research paper, the focus will be on the Medicare healthcare system in the context of the United States. The paper will focus on illustration of the concepts of the Medicare healthcare system, various management challenges, problems, and opportunities in
The other dimension is related but is definitely separate. Some end-users are not only uninformed on how to administer electronic health records, they may actively resist and otherwise undermine the setup and these people need to be identified or even removed if they will not play along. It cannot be denied that, when done properly, electronic health records allows for such a seamless and beautiful result. As such, people that