The selected company, Starbucks Corporation, has over 30,000 locations globally in more than 70 countries. It is an American multinational chain of coffeehouse and roaster reserves. Starbucks has its headquarters in Seattle, Washington, US. I selected Starbucks because due to the uniqueness in product quality and their appreciation of customer preferences.
Starbucks operates over 30,000 outlets globally. This makes the company an international player in the coffee industry. Starbucks is popularly known for effectively managing its supply chain of the coffee beans from the farm to the cup. The company has more than 31,256 employees who play a critical role in the continued performance and competitiveness in the coffee and fast food industries (Azriuddin et al., 2020).
The main products sold by Starbucks comprise of coffer beverages. Starbucks sells a variety of roasted coffee products such as Medium Roast Premium Instant Coffee, Dark Roast Premium Instant Coffee, Cappuccino, and Caffé Mocha. Also, Starbucks specializes in the sale of smoothies, tea, sandwiches, and baked goods (Chuang, 2019).
The target consumers for Starbucks include middle to upper class men and women. The target consumers comprise of individuals with the capacity to afford highly priced beverages on regular basis.
The main competitors posing serious threat on Starbucks consist of McDonald’s, Costa Coffee, Dunkin’ Donuts, Barista Coffee, CCD, Luigi Lavazza S.P.A., Tim Hortons, Caribou Coffee, Tullys, and Peet’s (Chuang, 2019).
Structure of the Market They Operate
The coffee and the fast food industries are high competitive markets. There is high market saturation of respective companies that operate in the industry (Geereddy, 2013). This increases the customer negotiation capacity as they can readily find numerous alternatives. As a result, each coffee shop is required to offer its customers the best quality to ensure they maintain their brand and customer retention.
Regions They Service
Starbucks operates three-region organization structure which include A) China and Asia Pacific constituting of all Asia Pacific markets and China. B) EMEA comprising of Europe, U.K., Middle East, Russia, and Africa. C) Americans including United States, Mexico, Canada, and Latin America.
Concepts Learned in the Course
Consumer retention is one of the major concepts learned in the course. Starbucks maintains high consumer retention rates by offering the best products. The company has maintained strong consumer retention for over 50 years since its founding. Strong brand identity – Starbucks is a market leader and pioneer of industry innovations.