Example: Hong Kong,
1. Political issues
2. Economical issues
Inflation rate - 10%
Growth in spending power – Average Income
Rate of people in a pensionable age
3. SOCIAL ISSUES
Social and cultural changes affecting
consumers’ buying habits/trends
Expectation of society from the
Technology has been
played a vital role in
Nothing is more important
than espresso machines
designed our custom.
We have designed
special types of
5. Environmental issues
Recycling: Recycling in Stores, Reusable
cups, Greener Cups. Composting of coffee
Energy: reduce energy consumption by
25% by 2010. Purchase renewable
energy equivalent to 50% of the
electricity used by 2010
Water: continue to include water-saving
technology in our equipment
specifications and going to reduce water
consumption by 25% by 2015
Environmental issues (2)
Green Building: create a system to
certify retail stores and store
prototypes. Beginning in December
2010, build all new, company-owned
stores to achieve LEED® certification
Climate Change: implementing a climate
change strategy since 2004, focusing on
renewable energy, energy conservation,
and collaboration and advocacy. ensure
a long-term supply of high-quality
coffee through responsible coffee
purchasing practices and by investing in
farmers and their communities.
Source: Starbucks USA Homepage
Employment law: working time, age, minimum wage
Health and safety regulations
- Ex: Starbucks spend more on health insurance — $300 million
surmount its coffee bill
- Ex: Starbucks pay $225.000 to settle Consumer Protection
case for gift card violations. (Santa Rosa, CA , 2009)
- Ex: Stored-valued card: this is a prepaid card offer by
6. Legal issues
NAME AND LOGO OF STARBUCKS GET
Porter’s five forces
Starbucks has various options
when choosing their supplier.
Starbucks decided to change
its suppliers because of the
increasing of price.
Disaster or issues associated
with coffee producers being
treated unfairly by multinational
•Buyers power: High
Starbucks has loyal
customers that willing to
come to buy.
Starbucks is not the only
one choice of the
possess large amount of
•New entrants: Moderate
The market is highly saturated and require substantial
amount of financial resources.
Little product differentiation.
Rivalry among existing
competitors is high.
Many people started to look
for more healthy and
fresh juice instead of coffee.
The competitors don’t have
much different from their
There are many kind of substitutes products, such as tea,
soft drinks, juice, etc.
• Coffee beans producers mainly
• Organising the supply chain
Selling its products through its
stores without any intermediates
• Direct Operations
• Sampling Of New Products
MARKETING & SALES
Service on stores
coffee beans and raw
food items, as well as
fixed assets such as
buildings, machinery etc.
• Most valuable
• A wide range of
- High quality
- Strong brand name
- Starbucks experience
- Largest coffeehouse chain in the world
- High market share and market growth
- Business profits are highly dependent on
- Too focus on US domestic market.
-Increase product offerings
-To extend supplier network.
- Expansion to emerging economies
- Rising prices of coffee beans and dairy
- Frequent changes in the market trends
- Numbers of competitors are increasing
- Huge resistance in international countries
over cultural and political issues
THERE ARE ____ MAIN THEME(S)
TO DECORATED IN STORES ?