Found in 1971, Starbucks Corporation is the leader in the coffee shops industry, with a turnover of $9,411.5 million in 2007 (source: Datamonitor). Its main activity is to manage coffee shops (85% of its turnover) and to sell licenses (10,9%), but Starbucks has also diversified its activity (4,1%) by selling new products (food, machines, tools…), buying subsidiaries in the catering sector (Tazo Tea Company, Seattle's best coffee), selling its products out of coffee shops (airlines, hotels, outlets…) and even has an activity out of the coffee sector with Hear Music, its record label.
Since 1987, Howard Schultz, who is the current CEO, has owned the company. With him at the head of the firm, it became international. Nowadays, even if its main market is clearly in the USA, Starbucks is known worldwide, having more than 8500 coffee shops under its name and more than 6500 licensed shops.
[...] Production: Starbucks transforms coffee beans from all over the world into delicious beverages. But it also sells them in packages and this proven to be a very efficient method. Commercialization: In France, Starbucks products are available only on the coffee shops of the brand, and online. But they are likely to be sold in other places like cinemas or theaters in the future. The commercialization is likely to evolve to create more value for the company. In the U.S, Starbucks products are already available in supermarkets. [...]
[...] For instance in Thailand, Starbucks wants to open new shops and has to guarantee both the quality control and the correct supply. Starbucks has suppliers from various areas in the world. This strategy gives two advantages to the company. First, customers can have a large range of coffees. Secondly, Starbucks minimizes the risks such as for example the weather, political issues etc. Starbucks has its own agents to meet growers and distributors worldwide. In order to preserve equity and their aim of a responsible business, they buy coffee at a high price to ensure so farmers have enough money to ensure their production costs and family life. [...]
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