Future of Starbucks in SWOT and PEST anlalysis

Essay by NosherwanUniversity, Master'sA-, October 2006

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Executive Summary

In 1998 Howard Schultz had ample reason to be proud of what Starbucks had accomplished during his past one decade years as the company's CEO. The company had enjoyed phenomenal growth and become one of the great retailing stories of recent history by making exceptional coffee drinks and selling dark-roasted coffee beans and coffee-making equipment that would allow customers to brew an exceptional cup of coffee at home. It already had over one thousand and five hundred stores in North America and the Pacific Rim and was opening new ones at a rate of more than one per day. Its stock price increase nine fold. Schultz's biggest idea for Starbucks' future came two and half decade during the spring when the company sent him to Milan, Italy, to attend an international house wares show. While walking from his hotel to the convention center, Schultz spotted an espresso bar and went inside to look around.

Just down the way on a side street, he entered an even more crowded espresso bar. In the next few blocks, he saw two more espresso bars. Schultz was particularly struck by the fact that there were one thousand and five hundred coffee bars in Milan, a city about the size of Philadelphia, and a total of one fifth of one million in all of Italy. His mind started churning. Schultz left Starbucks two decade before. The first Il Giornale store opened two decade before in April. It had a mere seven hundred square feet and was located near the entrance of Seattle's tallest building. The decor was Italian, the menu contained Italian words, and Italian opera music played in the background. The first Starbucks location outside of North America opened recently in Tokyo, and Starbucks now has outlets in thirty additional countries. Industry...