Business Report Starbucks By Nadia Sabrina Vincent Date

Business Report Starbucks By Nadia, Sabrina, Vincent Date: May 18, 2006

The Main Business Activity o o o o Coffee Cookies Cake Chocolate Some other snacks Starbucks CDs Coffee makers and affiliated equipment

The Professional Background p. Starbucks in Taiwan – President Coffee Corporation p. Starbucks all over the world

The Overall Vision for the Company o The 6 Starbucks mission statements o The 7 environment mission statements o Social Responsibility

Starbucks overview o Turnover: 24 million (in Taiwan) o Position on 2005 Fortune 500 list: # 338 o o Typical customer: 33 million customers worldwide per week. Locations: Starbucks is in 35 countries.

State of the Market p. Growing steadily each year p. Over 7, 500 stores around the world p. Revenue is growing by 20% a year p. Opening approximately three stores every day p. Next target market: China

Market Position o Up market o A cup of coffee costs more than NT$100 o The Starbucks Experience: products, service, music, environment, etc.

Target Market o Adults with incomes, college students, etc. o Savvy and avid coffee drinkers o Customers who enjoy the “Starbucks Experience”

Current Major Competitors o o The other coffee shops that sell similar coffee at a much more competitive price. Local copycats of Starbucks in Taiwan e. g. . Barista Coffee (西雅圖極品咖啡)

Advertising & Promotion o o o Little advertising and promotion after break into a new market Focus on the training and farewell of employs To enhance the service quality happy customers more customers (Word of Mouth)

Locations 1. Downtown a. where there are many people & heavy traffic b. in business center or shopping district 2. Large stations or rest areas

Starbucks SWOT o o Strength: A popular and famous brand, a coffee-chain giant, knowing how to sell affiliated products Weakness: The selling price is not cheap Opportunity: Developing strategic alliances with other catering trade. Threat: Lots of replacement products, Business administration is easy to be imitated by other coffee shops

The Required Property o o Factories: Canned coffee, coffee ice cream, hand-made cookies, and cakes. Special Property: Coffee makers, Starbucks staff

Goals, Strategic issues, and Expansion o Goals: Short-term goal: Making more locations in 2006 (note: Starbucks does not have franchise) Long-term goal: Be as recognizable a brand as Coke. o Strategic issues: Technology affects supply chain issues and proprietary roasting techniques. Choose most appropriate long-term strategy to grow sales and profitability.

Goals, Strategic issues, and Expansion o Expansion: Will open more locations in Taiwan for achieving a great turnover Extend their branded product line and make some products available in retail markets (e. g. selling coffee, ice cream, cookies in 7 -11. ) Develop more strategic alliances (e. g. Chinatrust bank).