Starbucks Coffee :: Starbucks Coffee Case Study

Starbucks CoffeeTable of ContentsIntroduction 3Product analytic thinking3Product Overview3Market Structure4 contestation5Dunkin Donuts7Krispy Kreme3McDonalds8Panera Bread8 snapshot EstimatesPricing Strategy10Forecast12Determants of Demand13Forecast Model15Forecast Summary15 plant CitedIntroduction With the economy in trouble, the stock market tanking it is important to out your day with a good cup of cocoa to take on these challenges. Can Starbucks sustain it business model and place in the market? The paper examines Starbucks business and it respective practices.In 1971, the growth lineal Starbucks receptive in Pike Place Market in Seattle, Washington by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their guidance was to sell umber beans and equipment. They purchased green coffee beans from Peets, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buying coffee beans this instant from the growers. In 1983, an entrepreneur by the name of Howard Schultz joined the company Schultz mat that the company should sell coffee and espresso drinks as well as coffee beans. The partners felt that selling coffee and espresso drinks would take away from their primary focus of selling coffee beans. Since the idea did not work, Schultz started his own company called II Giornale coffee bar chain in 1985. In 1987, the original owners of Starbucks sell their chain to Schultzs II Giornale. Schultz changed II Giornale outlets to Starbucks chains and quickly began to expand.Starbucks coffee has grown into the largest coffeehouse company in the world with 16,120 stores in 94 countries such as in Australia, Canada, China, Puerto Rico, etc. Starbucks has thirty blends and single origin coffee. Starbucks brand coffee can also be purchased in local stores to brew at home. Starbucks employs over 140,000 employees worldwide with over five million customers a week. At one point they ha d typical customers coming in on an average of six times a month bandage loyal customers come in on an average of eighteen times a month spending averaging $50. Starbucks is one of Fortune magazines speed of light Best Companies to work for in 2008 and is Business Ethics 100 Best Corporate Citizens for the fourth year.Product AnalysisProduct OverviewStarbucks product line has grown to include fresh brewed coffee, hot and iced espresso beverages, coffee and non coffee blended beverages, Tazo tea, baked pastries, sandwiches, and salads. Starbucks paraphernalia includes coffee grinders, espresso machines, coffee brewers, music CDs, books, movies and gift cards.