starbacks analysis

Essay by kyalomCollege, UndergraduateA, November 2014

download word file, 13 pages 0.0

Downloaded 3 times

Service Management: The Case Study of Starbucks



Date of submission



Starbucks Corporation is an American company operating in the specialty eatery industry. During its formation the company specialized in producing coffee operating both as a coffee roaster and retailer in Seattle (Lyons 2005). It has been a successful corporation since then and has been expanding its operations and productions since 1971 when it was founded to date. Starbuck is now a global company that not only serves in the US but also has stores in many other countries. Apparently research shows that Starbucks Corporation has stores in more than 60 countries such as Philippines, South Korea etc in addition to the multiple stores located in United States. The global operations help Starbucks overcome business cycles as it operates in regions with in different lifecycle stage; as US I specialty eatery industry id in the maturity stage, china/Asia regions are in the growth stage and the African countries are yet to begin the cycle as far as quality coffee standards are concerned.

The eatery industry is a bit competitive but dominated by few firms operating in monopolistic competition that is subject to threat of new entrants that might increase competition. Starbucks is one of them with its competitors being Caribou coffee company, Inc. and Panera Bread Co. (PNRA). Being in the services sector star bucks also faces indirect competition from other firms such as McDonalds.

Services description

Being in the eatery industry, Starbuck had traditionally specialized in coffee production where the company roasted coffee and retailed it to the customers. However the company has expanded both marketwise and product wise make it a multiple product producer to date. In the eatery section, Starbuck serves beverages, both hot and cold...