PESTEL Analysis - Starbucks

Extract

[...] As raw materials, coffee beans, make up one of the company's biggest expenses any relief for instance due to reduction in permits and licensing, etc., in particular countries can subsequently lower production costs for the farmers and this saving can then also ultimately be enjoyed by Starbucks and its loyal customers. B. Economic Following on from the latest global financial crisis and now the added issue of the COVID-19 pandemic, Starbucks has been dealing with major economic challenges and has been forced to close many of their stores around the world. [...]

[...] In addition to these factors, the next major issue facing Starbucks is dealing with its competitors. In countries across the globe, numerous coffee shops have opened up and have become direct competitors of Starbucks. Brands like Dunkin Donuts and McDonald's in the United States and Costa Coffee, which has expanded rapidly around the globe, are challenging Starbucks current market position. Starbucks coffees have traditionally been priced higher than its competitors, the brands strict quality control and determination to only use the highest quality coffee beans in its products has however given its competitors a cost advantage. [...]

[...] Technological To keep up with the rapidly growing digital age, Starbucks needed to make sure that they expanded their business on this front too. With the widespread use of mobile phones, it meant that the company was able to develop a Starbucks app. Now you can find your nearest Starbucks store, collect your loyalty points and pay for your purchases, all on your mobile phone. In 2010 the company rolled out unlimited Wi-Fi access to all of its customers and has used its website and online advertising to expand their customer base. [...]

[...] Pestel Analysis: Starbucks I. Starbucks History The United States-based Starbucks Coffee Company was founded by three friends who met at The University of San Francisco in 1971. They opened their first coffee bean store in Seattle, Washington, in March of that year, near the historic Pike Place Market which bore its now historic brown mermaid logo. Although the three founding partners all came from an academic background, Jerry Baldwin, Zeve Siegl and Gordon Bowker all had one thing in common, their shared passion for quality coffee and tea. [...]

[...] In 2019 they opened the world's largest Starbucks Reserve Roastery in Chicago, offering the most discerning coffee drinkers an environment in which they could discover and explore some of the world's rarest and most extraordinary coffee blends. The brand offers food items such as sandwiches, pastries and cakes as well as pre-packaged food in all of its stores which can either be eaten in its comfortable cafe setting, or as takeaways. Its latest venture is “Starbucks Evenings”, which are selected outlets now serving appetisers, beer and wine. [...]