Starbucks is a global coffee company founded in 1971 that operates over 17,000 retail stores across 50 countries. It has three business segments including retail stores, a global consumer products group, and food service contracts. Starbucks aims to provide a welcoming environment and high quality coffee and food items. It faces competition from other large coffee chains like Dunkin Donuts and McDonald's McCafe brand, but maintains its dominant position in the specialty coffee market. Starbucks emphasizes corporate social responsibility and promoting seasonal flavors to attract and retain customers.

1. Industry Level Strategy
By Donna Moulton

2. • Starbucks Corp. was founded in 1971. They have 17,000
stores in about 50 countries.
• They are publicly traded on the NASDAQ under the ticker
symbol SBUX.
• They have 3 business segments, retail stores, international
global stores and about 19,000 food service contracts, and
consumer products group(licensed partners distribute and
sell the branded beverages and food products to groceries,
warehouse stores and convenience outlets worldwide.

3. • Starbucks operates in about 50 countries, and Canada, the
UK and Japan represent the companies largest international
markets.
• Starbucks brands include Starbucks beverages, Seattle's Best
Coffee, Tazo teas and then Frappuccino.
• Ranked in at number 94 buy Fortune in the 100 best
companies to work for. Competitor companies didn’t even
make the list.

4. • With a full staff the chain can churn out 220 customers an
hour, their goal is from the minute the customer walks
through the door and into the line to get them threw in 3-5
minutes.
• When you become a barista the candidate must become
certified in pouring the perfect cappuccino and latte, also
never serving anything over the temperature of 180 degrees.
(165 degrees is the normal temp of a latte or cappuccino)
Each baristas undergoes 30 hours of training.

5. • Starbucks coffee while in a shop never sites in a pot for longer than a half hour,
they operate with 4 batches and rotate them every 15 minutes.
• Barista’s who work 20 hours a week are eligible for health insurance. (In 2009
this cost the company 250 million).
• Customers can pay via phone and gift card, and the chain also offers free wifi
service with no restriction on laptop usage.
• Starbucks also has a strong sense of CSR (Corporate Social Responsibility)
whether it be environmental, communal, Ethical sourcing or global. An example
of this would be ethos water Project: “The program was created to raise awareness about this terrible crisis and
provide children with access to clean water. Every time you buy a bottle of Ethos® Water, you contribute $.05US ($.10CN in Canada) to the
Ethos® Water Fund, part of the Starbucks Foundation. $7.38 million has been granted to help support water, sanitation and hygiene
education programs in water-stressed countries – benefiting more than 430,000 people around the world.”
http://www.starbucks.com/responsibility/community/ethos-water-fund

6. • Starbucks’ top 3 customer attractions:
• 1. A place for everyone
• Starbucks serves up high-quality coffee, But that is not the only menu option. They also carry a selection of
food items and bottled beverages, this makes them more friendly to children and snack pursuers. From
tasty sweets to healthy snacks they have a little something for everyone.
• 2. Ambiance
• Since Starbucks has not-so-competitive prices the ambiance of the shop is a draw. Customers know what to
expect when they enter through the front door, a coffee shop with a rich warm color scheme, alternative and
indie music, walls full of art, and the baristas in green working the counter, free wifi and comfortable
seating, The company strives for comfort.
• 3. Consistently Convenient
• Starbucks is convenient in many ways whether it’s the Baristas who work quickly and keep lines moving
while serving a great tasting product, or the amount of convenient locations, The newly formed partnership
with the company Square so customers can pay via phone, and then lastly the coffee shops comfortable
inviting environment.

7. • Starbucks promotes seasonal flavors and promotions much
like all their competitors.
• They also offer free music downloads in itunes of the many
bands that play over their store radio.
• Lastly Starbucks has no clear competition; The closest
competitors include Dunkin Donuts, McDonalds and local
coffee shops. Starbucks holds the dominant position in the
specialty coffee shoppe market and has no single clear rival
thus far.

8. • Dunkin Donuts a competitor of starbucks was founded in
1950 as primarily a coffee and donut shoppe. They have a
total of 10,083 shops of that number 3,068 stores are
located in over 32 countries.
• As of more recently the shoppe has been adding more
healthy choices to their menu much like starbucks, except
this chain offers hot food as well as tasty treats like muffins
and their many choices of donuts. They have even partnered
up with Baskin Robins to double as an ice cream shoppe in
some of the chains locations.

9. • Dunkin Donuts has a bright ambience about them with the
bold bright colors of the interior walls and matching tables.
Unlike Starbucks many locations are franchised and do not
offer wifi or a comfortable seating area, and as for their
music they are not as trendy as their competitor. They are a
more coffee to go sort of shop.
• They do however offer coupons weekly by mail and also like
Starbucks they have seasonal and holiday themed menu
items.

10. • Another competitor of Starbucks is McDonalds, founded in
1940 they now have over 34,000 restaurant locations world
wide.
• The company has been altering their image for quite some
time now and as of late have branded their coffee McCafe.
• McCafe locations in other countries offer a trendy cafe like
atmosphere and snacks and treats much like Starbucks.

11. • McDonlds though does not offer the same type of ambience
or comfort as Starbucks in the states as of yet and caters
more towards children and people on the go.
• Although many menu choices are not very healthy the
company has been altering the menu to include salads and
healthier options.
• Unlike Starbucks this competitor also offers hot foods and
weekly coupons to draw in the crowds.
• They also cater to a larger demographic than Starbucks and
have more locations.

12. Local Coffee Shops
• Secondary competitors would include many local and
smaller coffee shops, for example Last Drop Coffee Shoppe
in Monroe CT.
• They offer a full range of coffee beverages, cooler beverages,
breakfast and lunch (hot and cold) and have open mic night
and live bands play once a week.
• Even though they are not a chain there is a Starbucks up the
street from this shop, the difference between this shop and
Starbucks is the homelike atmosphere where everyone
knows your name.

13. • Works Cited
• "About Us." DunkinDonuts.com. N.p., n.d. Web. 30 Apr. 2013.
• "Being a Responsible Company." Starbucks Coffee Company. N.p., n.d. Web. 30 Apr. 2013.
• "Best Companies to Work For 2013: Full List." CNNMoney. Cable News Network, n.d. Web. 30 Apr. 2013.
• "Dunkin' Brands Group Inc." Business Insights: Essentials. N.p., n.d. Web.
• Groth, Aimee, and Gus Lubin. "11 Things Starbucks Does Better Than Almost Any Competitor." Business Insider. N.p., 29 July 2011. Web. 30 Apr. 2013.
• Hennessey, Rachel. "3 Reasons Why Starbucks Still Shines, Despite Market Shortcomings." Forbes. Forbes Magazine, 06 Aug. 2012. Web. 30 Apr. 2013.
• "Our Story." :: McDonalds.com. N.p., n.d. Web. 30 Apr. 2013.
• "Starbucks Corp." Business Insights: Essentials. N.p., n.d. Web.
• Zeuschel, Alison. "Starbucks: A New Business Strategy." Suite101.com. N.p., 22 Mar. 2011. Web. 30 Apr. 2013.