Coffee Industry Analysis - 2770 Words (2024)

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  • Starbuck’s and the Environment

    explanatory essay

    Coffee is a worldwide cash crop of which demand has exponentially increased over the years. “Coffee is (after oil) the world’s second most important traded commodity” (Cleaver 61). Competing coffee brewing companies wage war on offering the freshest, best tasting coffee the market has to offer. With such stiff competition there must be enough coffee beans deemed to be good enough in quality to supply the increasing demand. Starbucks can be considered one of today’s top competitors if not thee top coffee manufacturer presently in business. This successful company has had a huge impact on the coffee industry as well as the world. They have gone through great length to provide consumers with an excellent product as well as create a legacy that shows how to best go about running a massive corporation while keeping the environment clean and healthy.

    In this essay, the author

    • Explains that coffee is a worldwide cash crop of which demand has exponentially increased over the years. competing coffee brewing companies wage war on offering the freshest, best tasting coffee.
    • Explains that starbucks utilizes only the highest quality coffee beans for their products, which requires them to carry out a rigorous quality control process. coffee beans vary in complexity and taste depending on where they are grown.
    • Explains that starbucks collects coffee from thousands of farmers in over 30 countries even though these family farms have only a few dozen acres. the 1994 genocide in rwanda is of special interest to the founder.
    • Explains that coffee is a worldwide cash crop of which demand has exponentially increased over the years. competing coffee brewing companies wage war on offering the freshest, best tasting coffee.
    • Explains that starbucks utilizes only the highest quality coffee beans for their products, which requires them to carry out a rigorous quality control process. coffee beans vary in complexity and taste depending on where they are grown.
    • Explains that starbucks collects coffee from thousands of farmers in over 30 countries even though these family farms have only a few dozen acres. the 1994 genocide in rwanda is of special interest to the founder.
    • Explains that starbuck's roasting process is a delicate process involving heats and time that extracts the full flavor and richness from that tiny little bean.
    • Opines that a successful company like starbucks has an impact on the society as well as the world.
    • Explains that coffee is a naturally farmed substance with no harmful waste associated with it.
    • Cites domosh, mona, roderick neumann, patricia price, and terry jordan-bychkov. the human mosaic: a cultural approach to human geography.

    952 words

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  • Starbucks SWOT Analysis

    opinion essay

    However, such success requires high maintenance. In fact, due to high competition and declining revenues, in year 2005, Starbucks introduced new products to their menu, which included pastries, sandwiches, and deserts. Such strategy helped the company regain its market power. Regrettably for the investors, such static fixture provides only a short-term relief in a highly volatile and competitive market. Mr. Schultz have expressed his concern that the company is taking a route that is causing the brand to lose its well known image of friendly coffee house (Seaford, et. al, 2012). The market that was once cornered by Starbucks has started to slip away from the grips of the company once McDonald’s, Dunkin Donuts,...

    In this essay, the author

    • Explains how starbucks was inspired by the book and movie about moby dick. howard schultz introduced the new italian coffee bean and italian style of coffee drinking.
    • Opines that starbucks is taking a route that is causing the brand to lose its well-known image of friendly coffee house.
    • Explains that starbucks refocused its attention on coffee in 2009, and introduced via instant coffee to steal back the market that was once theirs from the competitors such as panera bread.
    • Explains how starbucks was inspired by the book and movie about moby dick. howard schultz introduced the new italian coffee bean and italian style of coffee drinking.
    • Opines that starbucks is taking a route that is causing the brand to lose its well-known image of friendly coffee house.
    • Explains that starbucks refocused its attention on coffee in 2009, and introduced via instant coffee to steal back the market that was once theirs from the competitors such as panera bread.
    • Explains that branding a new product is not as easy as placing it on the shelves and hope for the consumers to buy it. a strong marketing team is required for affective branding, as they understand the issues while doing so.
    • Opines that starbucks has done a good job for packaging their instant coffee.
    • Opines that starbucks must increase its advertising budget and increase the use of the media to counter the said problems.
    • Explains that the key issue starbucks via faces is the negative image already engraved in consumer’s mind by other brands of instant coffee.
    • Explains that there are many solutions to brand via now that the key issues have been identified. the company must try to lower the price by cutting unnecessary overheads such as excessive advertisem*nts.
    • Explains that starbucks has done a great job with the current packaging, but it's flawed. the most effective packaging is the one that advertises the product until the end of its consumption.
    • Recommends a few starbucks via cups with each package sold to keep the overhead cost moderately low. they also recommend giving customers the option to purchase additional cups for $0.10.
    • Explains that via brand will be starbucks minus the baristas-and the brewing.
    • Explains starbucks' mission statement, which can be found at http://www.starbucks.com/about-us/company-information/mission-statement.

    1431 words

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  • Coffee Shop Case Study

    explanatory essay

    The coffee shop industry is an ever growing field with innumerable advantages for both owners and consumers. With 50% of the American population having at least one cup of coffee each day, and each having an average of 3.1 cups a day, there is no denying the major role of coffee shops. Coffee shops alone account for $12 billion of the $18 billion United States coffee market. While there are still threats that come with coffee shops, the opportunities are endless.

    In this essay, the author

    • Explains that the coffee shop industry is an ever growing field with innumerable advantages for both owners and consumers. coffee shops alone account for $12 billion of the $18 billion united states coffee market.
    • Explains that while each coffee shop has its differences to make them stand out from the others, they are all making the same product, coffee.
    • Explains that starbucks, tim hortons, dunkin donuts, costa coffee, and panera bread are the largest coffee shops in america.
    • Explains that the coffee shop industry is an ever growing field with innumerable advantages for both owners and consumers. coffee shops alone account for $12 billion of the $18 billion united states coffee market.
    • Explains that while each coffee shop has its differences to make them stand out from the others, they are all making the same product, coffee.
    • Explains that starbucks, tim hortons, dunkin donuts, costa coffee, and panera bread are the largest coffee shops in america.
    • Explains that the government uses standard industrial classification codes to identify a business’ primary business. some sic codes apply to the coffee shop industry.
    • Explains that as the number of coffee shops continues to rise, there amount of information for those directly involved in the industry also rises. a popular way to communicate information is through trade magazines.
    • Explains that while labor unions play a major role in most industries, that is not the case in the coffee shop industry. starbucks does offer one to its workers, but it still works for higher wages for baristas.
    • Opines that imports and exports play a major role in the economies, and are present in almost all aspects of business, including coffee shops.
    • Explains that the coffee shop industry is dominated by competing and complementary products. keurigs are a competing product, while mom and pop coffee shops are competitors.
    • Explains that starbucks is the largest coffee shop in the united states, while dunkin donuts, tim hortons, and costa coffee are all franchises.
    • Explains that the growth of technology plays a huge role in the coffee shop industry. companies have to have the newest machines to keep up with consumers demands.
    • Explains that there are not many specific regulations for coffee shops, but they have to follow fda regulations if trends continue. if the number of children drinking caffeine continues to increase, regulations will be placed.
    • Opines that while the coffee shop industry in the united states is doing extremely well, there is always the international coffee industry that companies should be apart of.

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  • As discussed in class, when demand decreases for a product, companies or in this case producers should exit the market. But when it comes to coffee, producers don’t want to exit the market because the costs of moving out of coffee production are quiet large and farmers don’t have the means for alternatives. The reason being that, farmers don’t have any outside funding to promote efficient diversification and development. Another reason is that there are protection policies from the United States and the European Union that have made it harder for framers to benefit from producing other crops. And yet, the opportunity cost for farmers to switch to another product is higher than the cost of coffee in a low profit market. So, this book discusses different strategies that are being used to help producers get a better advantage to provide a living for their families. Different strategies being used include shade-grown coffee, differentiation of products, organic coffe...

    In this essay, the author

    • Explains that until 1990, coffee was traded in a managed market where both consuming and producing countries agreed on pre-determined coffee supply levels through export quotas for the producing country.
    • Explains that farmers don't want to exit the market because the costs of moving out of coffee production are large and there are protection policies from the united states and the european union that have made it harder for framers to benefit from producing other crops.
    • Explains the benefits of diversifying products, such as household consumption needs, risk spreading, land-use optimization, economic production conditions, and market opportunities.
    • Explains that until 1990, coffee was traded in a managed market where both consuming and producing countries agreed on pre-determined coffee supply levels through export quotas for the producing country.
    • Explains that farmers don't want to exit the market because the costs of moving out of coffee production are large and there are protection policies from the united states and the european union that have made it harder for framers to benefit from producing other crops.
    • Explains the benefits of diversifying products, such as household consumption needs, risk spreading, land-use optimization, economic production conditions, and market opportunities.
    • Explains that organic coffee is better for the environment, helps to protect the water from chemical run-off, and lowers the costs for chemical inputs. the industry can translate those values into economic rents as price premiums for producers.
    • Explains that cooperatives are beneficial in that they guarantee employment by cooperative statuses. however, they come with a lot of risks.
    • Argues that fair trade is supposed to pay farmers an equal price for their production, which creates higher prices for consumers.
    • Opines that fair trade and organic coffee are good ideas but they need to develop more because they can't protect all farmers due to limited demand.

    942 words

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  • The Continual innovation of Nespresso

    analytical essay

    Instant coffee is a household staple, with 73% of UK consumers drinking it daily. Nestle’s Nescaffe dominates the market with 43% market share and the majority of volume sold. In seeking out new ways to expand coffee drinking in the home, Nestle developed Nespresso. Nespresso is every bit as convenient as Nescaffe but uses fresh ground coffee individually packaged in pods to brew consistent single serve espresso. To use the pods, a special Nespresso coffee machine is necessary. Upon purchasing a machine, the consumer becomes part of the Nespresso club. Pods are then sold to club members either through high-end Nespresso boutiques or online. This premiumisation of convenient coffee is a growing market, in fact between 2010 and 2012 it was the fastest growing segment in the UK coffee market with growth of over 50% in both value and volume. Nespresso has always been the market leader for coffee pods in Europe, starting to develop their system as far back as the 1970s and continuing to innovate today. However, with patents on their unique system coming to an end last year, so too will their monopoly in this niche market. Already, the firm is feeling the competition from newcomers such as CafePod who make their own pods compatible with Nespresso machines. The following discussion will explore how trust, an entrepreneurial spirit and constant innovation have shaped Nespresso, and what this means for the future of the firm.

    In this essay, the author

    • Explains that instant coffee is a household staple with 73% of uk consumers drinking it daily. nestle's nescaffe dominates the market with 43% market share and the majority of volume sold.
    • Explains that the nespresso system is proprietary, with 1700 patents protecting it. gaillard had to convince manufacturers that this was a worthwhile contract and did so by committing to new markets.
    • Analyzes how nespresso's decision to bring distribution of their capsules in-house stood out from potential competitors by offering 24-hour, personalised service, coffee delivered to your door within two business days.
    • Explains that instant coffee is a household staple with 73% of uk consumers drinking it daily. nestle's nescaffe dominates the market with 43% market share and the majority of volume sold.
    • Explains that the nespresso system is proprietary, with 1700 patents protecting it. gaillard had to convince manufacturers that this was a worthwhile contract and did so by committing to new markets.
    • Analyzes how nespresso's decision to bring distribution of their capsules in-house stood out from potential competitors by offering 24-hour, personalised service, coffee delivered to your door within two business days.
    • Explains how nespresso's aaa sustainable quality program was formed to improve and sustain the social and environmental welfare of coffee farmers.
    • Explains that trust is the underlying attribute that has defined our discussion thus far.
    • Analyzes how trust stems from shared values and how gaillard's attitude and commitment to the brand helped nespresso innovate.
    • Explains that nespresso was first developed in the 1970s, but it wasn't until 1986 that a wholly owned subsidiary of nestle was formed.

    1871 words

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  • Donkey Coffee And Esspresso Swot Analysis

    comparative essay

    The competition from those coffee shops is a serious threat for Donkey, and a large proportion of market share is taken away. Starbucks is a strong competitor, and it illustrates the threat for Donkey. First of all, both Starbucks and Donkey have a good reputation for high-quality coffee. However, when people consider about the awareness, Starbucks’ coffee will get more recognition. According to the report “Strategic Analysis Of Starbucks Corporation,” Geereddy (2013) reported that Starbucks has global brand recognition for selling highest quality coffee. Starbucks is well-known for high-quality coffee, and this advantage is hard to be replaced by other coffee shops. Second, the cost of products in Starbucks and Donkey is quite different even though both of them offer fair-trade coffee. Donkey purchases fair-trade beans primarily from the Dean’s Bean, and switching between several suppliers will drive price of coffee beans up. Geereddy (2013) analyses Starbucks’ supply chain as “…coffee beans…grown in select regions which are standard inputs, which makes the cost of switching between substitute suppliers, moderately low.” Starbucks as a global coffeehouse can control cost of coffee beans to be more stable and lower than Donkey, because they have their own supply chain and regular suppliers. Starbucks has more advantages in cost-saving, so Donkey is facing stiff

    In this essay, the author

    • Describes donkey coffee and espresso as a well-known coffee shop brand in athens, ohio, which sells fair-trade coffee and food products from local farm on west washington street.
    • Explains that donkey has been in athens for over 10 years offering high-quality coffee and satisfying customer’s demands.
    • Explains that donkey's price is higher than the average coffee price in athens because it is selling fair-trade coffee.
    • Describes donkey coffee and espresso as a well-known coffee shop brand in athens, ohio, which sells fair-trade coffee and food products from local farm on west washington street.
    • Explains that donkey has been in athens for over 10 years offering high-quality coffee and satisfying customer’s demands.
    • Explains that donkey's price is higher than the average coffee price in athens because it is selling fair-trade coffee.
    • Explains oldenburg's definition of the third place as a public location where people would like to gather together and enjoy their time, but not home and working place. art and music are significant factors that help donkey attract more people to stay in the shop.
    • Explains that starbucks and donkey have a good reputation for selling high-quality coffee, but the cost of products is different, even though both offer fair-trade coffee.
    • Concludes that donkey coffee and espresso has strong market position in athens due to the high quality coffee and long-term operating.

    1024 words

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  • Broadway Café Case Study

    explanatory essay

    As strategy consultants of McCormick & Associates, we use Porters Five Forces Model as a framework when making a qualitative evaluation of a firm's strategic position (Appendix 1.2). These five forces determine the competitive intensity and therefore attractiveness of a market. These forces affect the ability of a company to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the market place.

    In this essay, the author

    • Explains that mccormick & associates uses porters five forces model to evaluate a firm's strategic position. these five forces determine the competitive intensity and attractiveness of the market.
    • Explains how a loyalty program can be implemented in the broadway café by having customers purchase cards that are "stamped" and after 7 purchases, they get free or 50% off.
    • Advises that the broadway café should seek out and search suppliers that will offer the lowest price. a private exchange or a reverse auction could be done to get the best possible price from your suppliers.
    • Explains that mccormick & associates uses porters five forces model to evaluate a firm's strategic position. these five forces determine the competitive intensity and attractiveness of the market.
    • Explains how a loyalty program can be implemented in the broadway café by having customers purchase cards that are "stamped" and after 7 purchases, they get free or 50% off.
    • Advises that the broadway café should seek out and search suppliers that will offer the lowest price. a private exchange or a reverse auction could be done to get the best possible price from your suppliers.
    • Opines that the café can reduce the threat of substitute products by lowering its switching costs.
    • Explains that an entry barrier is to provide customers with high quality, fresh, homemade products. with the surge of the health craze, more people are likely to go to a café type establishment.
    • Explains that starbucks, atlanta bread co., panera bread, subway and dunkin donuts are the biggest competitors in the coffee industry.
    • Explains that a competitive advantage is an advantage over its rivals when its profitability is greater than the average profitability of all other companies competing for the same set of customers.
    • Explains that the broadway café can gain a competitive advantage over its competitors by bringing down the cost of its operations.
    • Opines that the broadway café should focus on premium ingredients in offering specialized coffees, teas and a full service bakery.
    • Explains how to eliminate inefficiencies and decrease the wait time for customers placing orders. customers want their products & services faster and are always on the go.
    • Explains that mccormick & associates has taken the first step in changing the way your business has been done in the past. with new systems in place, strategies to guide you to the next level, being flexible will pay off.
    • Opines that the last competitive advantage is in addition to the four that was previously discussed. rewarding good behavior, paid day off, or 50% discount on the food from the café are just some of the ways that employees can feel appreciated.
    • Explains that business intelligence is a process for increasing the competitive advantage of businesses by intelligent use of available data in decision making.
    • Explains how to synthesize useful knowledge from collected data using data mining, text understanding, and image analysis techniques.
    • Explains the importance of identifying reasonable decisions based on the expectation of risk and reward.
    • Explains that business intelligence is about extracting information from multiple sources of data. the key to data sourcing is to obtain the information in electronic form.
    • Explains that business intelligence is about synthesizing useful knowledge from collections of data.
    • Explains that business intelligence is about filtering out irrelevant information, and setting the remaining information in the context of the business and its environment.
    • Explains that business intelligence is about discovering what plausible actions might be taken, or decisions made, at different times. it helps you weigh up the current and future risk, cost or benefit of taking one action over another.
    • Explains that business intelligence is about using information wisely. it aims to provide warnings of important events, such as takeovers, market changes, and poor staff performance, so that you can take preventative steps.
    • Explains that the broadway café can use business intelligence in the process of its business upgrade to bring the café from past times to a modern business environment that can compete with other competitors.
    • Explains porter's four "generic" business strategies that can be adopted to gain competitive advantages. the broadway café would fall into the strategy of cost leadership.

    1950 words

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  • Mcdonalds Vs Starbucks Marketing Strategy

    explanatory essay

    Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.

    In this essay, the author

    • Explains that starbucks, dunkin donuts, and mcdonald's are known for providing americans with coffee. they will examine their marketing mix, which includes product, price, place, promotion and value-based marketing.
    • Explains value-based marketing and mcdonald's, which was founded in 1955, as one of the largest chains in fast food. they introduce customers to an app where they can explore other mcdonald products.
    • Explains that starbucks, founded in 1971, is known for dominating the coffee market. they have a mystarbucks idea site where people can share new ideas about drinks or other recipes to help develop new products.
    • Explains that starbucks, dunkin donuts, and mcdonald's are known for providing americans with coffee. they will examine their marketing mix, which includes product, price, place, promotion and value-based marketing.
    • Explains value-based marketing and mcdonald's, which was founded in 1955, as one of the largest chains in fast food. they introduce customers to an app where they can explore other mcdonald products.
    • Explains that starbucks, founded in 1971, is known for dominating the coffee market. they have a mystarbucks idea site where people can share new ideas about drinks or other recipes to help develop new products.
    • Explains that dunkin donuts, founded in 1950, is known mainly for their breakfast products and their catchy slogan. they keep prices reasonable so that no matter who the customer is they can find a product to fit their budget
    • Explains that these companies are in convenient areas and quick to get. they also make their coffee available beyond stores, having pre-made coffee packages that you can make in your own home, bring to your office to share with your coworkers, or even get a coffee package for someone.
    • Explains that mcdonald's and dunkin donuts use latin america arabica beans, while starbucks uses multi-regional coffee beans. starbucks has geographic strongholds in the west of america.

    872 words

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  • Starbucks Coffee and Snack Industry Analysis

    explanatory essay

    According to IBIS World Report the major players in the US coffee and snacks retail market are Starbucks and Dunkin’ Brands at 36.7% and 24.6% market share respectively with other competitors occupying the remaining market share of 38.7%. The industry is at the mature stage of its life cycle, has low barriers to entry and intense competition and rivalry between the players. The regulation and technological change within the industry is medium (IBIS world report)

    In this essay, the author

    • Opines that the company maintains its long-term strategic objective of being recognized and respected brands in the world.
    • Explains that starbucks prospers in the coffee and snack industry because of its brand equity, employee commitment, and value-driven human resource management.
    • Describes factors that offer competitive advantage but only until competitors emulate them, such as starbucks' size, its mobile technology, and its positive corporate social responsibility.
    • Opines that the company maintains its long-term strategic objective of being recognized and respected brands in the world.
    • Explains that starbucks prospers in the coffee and snack industry because of its brand equity, employee commitment, and value-driven human resource management.
    • Describes factors that offer competitive advantage but only until competitors emulate them, such as starbucks' size, its mobile technology, and its positive corporate social responsibility.
    • Explains that starbucks and dunkin' brands are the major players in the us coffee and snacks retail market. the industry is at the mature stage of its life cycle, has low barriers to entry and intense competition and technological change.
    • Explains that starbucks is sensitive to changes in the macro-environmental political, environmental, economic, legal, social, and technological factors that face the united states.

    1147 words

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  • Marketing Research Plan: Starbucks in China

    opinion essay

    Starbucks is one of the most recognizable and successful coffee brands in the world. Starbucks believes in serving the best coffee possible. Starbucks’ international market that was expanded into China in 2002, still has only a tiny part of the Chinese beverage market (Harrison et al., 2005). The company President, Charles Shultz is ascertaining the possibility of establishing new coffee houses in China.

    In this essay, the author

    • Explains the purpose of the paper, which is to perform market research for starbucks' president, charles shultz to ascertain the possibility of establishing new coffee houses in china.
    • Opines that starbucks should focus on expansion in beijing and shanghai, since both cities have a large urban population, rising economy, and increase in coffee consumption.
    • Explains that secondary research involves the investigation of secondary sources of data.
    • Explains the purpose of the paper, which is to perform market research for starbucks' president, charles shultz to ascertain the possibility of establishing new coffee houses in china.
    • Opines that starbucks should focus on expansion in beijing and shanghai, since both cities have a large urban population, rising economy, and increase in coffee consumption.
    • Explains that secondary research involves the investigation of secondary sources of data.
    • Explains that external sources of data published about china's coffee market will be used to evaluate starbucks' expansion.
    • Explains that internal secondary data with the company will also be used to judge the effectiveness of business already operating in the chinese market.
    • Explains census data will be used to get age, demographics, and population information for areas of expansion.
    • Opines that starbucks must establish new coffee houses for young consumers who are seeking a different type of chatting environment.
    • Proposes research questions to help starbucks determine if it is feasible to open new coffee houses in china.
    • Explains that starbucks has differentiated itself by convincing consumers that it is selling more than just a cup of coffee.
    • Opines that starbucks' success in china will be associated with how it continues to introduce it coffee and giving peoples in cities a "third space" for gathering beyond work and home.
    • Explains that starbucks is one of the most recognizable and successful coffee brands in the world, and believes in serving the best coffee possible.
    • Explains that starbucks has a responsibility to make profit and grow the business, and must customize its offering to match the tastes and preferences of local buyers.
    • Cites aaker, kumar, day, and biederman, p. s. on exporting a north american concept to asia: starbucks in china.

    1269 words

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  • What Is Starbucks Supply Chain Strategy

    analytical essay

    Bruss (2001) argues that the company hopes as well to make new investments in new coffee types. Starbucks has recently developed a new type of coffee called green-coffee. These strategies are created with the objective of support Starbucks’ commitment to buy coffee that has grown and processed by suppliers. They meet certain conditions of social, economic and quality standards. In addition to that, the company is paying additional premiums to those vendors who meet the specific requirements that the company wants.

    In this essay, the author

    • Explains that starbucks is an international coffee house with 21,000 stores in 65 different countries. it is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of specialty coffee.
    • Explains that the purpose of this report is to analyze the starbucks' supply chain strategy and then to make a literature review of the case.
    • Analyzes the different aspects involved in the supply chain management of starbucks.
    • Explains that starbucks is an international coffee house with 21,000 stores in 65 different countries. it is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of specialty coffee.
    • Explains that the purpose of this report is to analyze the starbucks' supply chain strategy and then to make a literature review of the case.
    • Analyzes the different aspects involved in the supply chain management of starbucks.
    • Explains starbuck's intention to create a more sophisticated supply chain through which the company can promote better collaboration between distribution, sourcing and planning.
    • Analyzes the rapid store expansion strategy of al-mutair coffee, which grew rapidly from 11 stores to 500 stores in the first nine years. the company's culture follows strict principles for how the coffee must be prepared and delivered, combined with a friendly attitude towards employees.
    • Explains that the company is opening 300 new stores around the united kingdom over the next five years. they also want to introduce their drinks in planes and trains.
    • Explains that starbucks knows that china is going to be the largest international market in 2014 and they will try to stablish 1,500 stores in 70 cities in 2015.
    • Explains that caffeine is one of the main points which attract people, and this makes coffee such a vast business. the first starbucks coffee shop was opened in 1971.
    • Explains that starbucks' coffee purchasing strategy is an important factor in its strategy. purchasing needs to be strategic to facilitate an effective supply chain.
    • Explains that in 2009 starbucks obtained two main coffee purchasing objectives: increase annual coffee purchases and achieve the double purchases of fair trade certified coffee. for 2015, starbucks is trying to assure that 100 percent of its glasses are recyclables.
    • Explains that starbucks has recently developed a new type of coffee called green-coffee. these strategies are created with the objective of supporting starbucks’ commitment to buy coffee that has grown and processed by suppliers.
    • Explains that the coffee purchasing strategy is quite important for the company's development due to they must do big efforts in factors such as marketing with the objective to attract new customers.
    • Explains that customer service strategy is important in competitive markets like coffee shops. price is an important factor for customers when choosing a coffee shop.
    • Opines that starbucks has created a great company due to some skills they have developed efficiently: employee motivation, excellent customer service and satisfaction, and an adequate environment.
    • Explains that when a person is hired to work in starbucks, that person must pass two types of training: the first one is based on "hard skills" where the new employees must learn how to use the cash register and mix drinks. the second one focused on soft skills where managers teach employees to connect with customers.

    1078 words

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  • Starbucks Quality Management Strategy

    analytical essay

    By remaining true to core competency and a laser like focus effort towards quality; Starbucks has managed to analyze, adapt and create brand loyalty to their particular market and remained the top competitor throughout the coffee industry. Americans in general enjoy a good, hot cup of coffee to start their day. In any given business, seeing a torrid cup of coffee in a cup from Starbucks is not uncommon. Starbucks is one of the most popular coffee franchises in the world with locations in 62 countries. Starbucks has been around since the year 1971where they started off as a coffee bean roaster and retailer. This research paper will briefly explores, examine, and assess Starbucks quality marketing and management strategy. Additionally, this research

    In this essay, the author

    • Explains that starbucks is one of the most popular coffee franchises in the world with locations in 62 countries.
    • Analyzes the qualitative processes and operation of the starbucks franchise which will reveal how they remain such a powerhouse in the coffee industry.
    • Explains that the research was conducted using literature reviews, exploratory research, and franchise information. qualitative information from other competitors was used to compare starbucks qualitative processes and customer satisfaction.
    • Explains that starbucks is one of the most popular coffee franchises in the world with locations in 62 countries.
    • Analyzes the qualitative processes and operation of the starbucks franchise which will reveal how they remain such a powerhouse in the coffee industry.
    • Explains that the research was conducted using literature reviews, exploratory research, and franchise information. qualitative information from other competitors was used to compare starbucks qualitative processes and customer satisfaction.
    • Explains that quality is often confused with routine processes and procedures of business operation. starbucks is the number one recognized coffee outlet in the world, with a market cap of 85 billion dollars.
    • Explains that quality control is a process of continuous improvement in service and product quality. the starbucks organization was recognized for its innovative management techniques that modernized production and boost efficiency.
    • Explains that the research was performed as a collaborative effort by three students taking online courses offered by embry riddle aeronautical university worldwide during spring semester of 2015.
    • Analyzes how schultz's five-initiative strategy will bring the company to a new level of quality. the initiative plan included new brewing equipment, coffee blending, precision shots of espresso, rewards card, ethical practices, brew time, online community, and conservation
    • Explains the starbucks organization dedication to continuous improvement began with the understanding their customers' sense of taste, ethics, and loyalty is the best quality factor of all.

    1776 words

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  • Starbucks Case Analysis

    opinion essay

    The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.

    In this essay, the author

    • Opines that there is a great differentiation between starbucks and the independent coffee houses, favoring the latter.
    • Explains that starbucks' marketing strategy can trace the causes of these problems, since a strategic marketing group is lacking anyway, maybe that's why we cannot even talk about "marketing strategy."
    • Opines that communication company's positioning suffered due to a major flaw in the marketing strategy. this was the most important cause for the wrong positioning and brand image.
    • Opines that there is a great differentiation between starbucks and the independent coffee houses, favoring the latter.
    • Explains that starbucks' marketing strategy can trace the causes of these problems, since a strategic marketing group is lacking anyway, maybe that's why we cannot even talk about "marketing strategy."
    • Opines that communication company's positioning suffered due to a major flaw in the marketing strategy. this was the most important cause for the wrong positioning and brand image.
    • Explains that no market researches have taken place to determine whether starbucks brand is positioned in the right place in consumers' minds.
    • Analyzes how the defective measurement of product and service quality, wrongly mistaken with the customer satisfaction, is a third cause.
    • Opines that starbucks is doing a great job of collecting and analyzing data regarding employee satisfaction and turnover, but the development of new products focuses on the partner satisfaction rather than on customer satisfaction.
    • Opines that investing only in labor in order to reduce with 20 second the waiting time could be a myopic perspective. fast service is only on the seventh place (65% of responders).
    • Opines that re-positioning starbucks as originally intended, address to its original segment, properly communicate the positioning, would consume considerable resources, and it is risky.
    • Explains that starbucks started its activity in 1971 as small coffee shop located in seattle specialized in selling whole arabica coffee beans. in 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for starbucks customers.
    • Analyzes how starbucks' usp was a place where every american could escape from home or work, for coffee drinking rituals, and their image was supposed to appeal to anyone, based on the idea of community.
    • Analyzes how starbucks' customer base has changed due to overall market change, and the company's image has taken an unwanted turn. they conclude that the lack of a clear and sound marketing strategy led to major problems
    • Argues that the brand image should be altered to appeal more to the current customer base. the ideal customer would visit the shop on a regular basis, consume higher priced products, and use t-mobile hotspot.
    • Opines that returning to original core values and original target sector would be the appropriate solution, having also in mind starbucks' core competencies.

    1693 words

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  • Case Study: Target Market For Starbucks

    explanatory essay

    The improvements to coffee brewers and the innovation of Keurig has allowed for Starbucks to repackage their products and distribute it as a home product. Many of the flavors consumers could only get from the Starbucks espresso machine in the store can now be duplicated in the home. The opportunity for continued expansion is present. Coffee is quickly being consumed in almost every country in the world, Starbucks has a legitimate opportunity to influence those countries without the Starbucks brand to open their doors.

    In this essay, the author

    • Describes a useful aid for organizing information utilizing its strengths, weaknesses, opportunities, and threats.
    • Explains that product recalls have hurt the starbucks brand as recently as 2015. specialization is a strength, but diversification and marketing products are weakness.
    • Explains that product diversification has allowed starbucks to repackage their products and distribute it as a home product. the opportunity for continued expansion is present.
    • Describes a useful aid for organizing information utilizing its strengths, weaknesses, opportunities, and threats.
    • Explains that product recalls have hurt the starbucks brand as recently as 2015. specialization is a strength, but diversification and marketing products are weakness.
    • Explains that product diversification has allowed starbucks to repackage their products and distribute it as a home product. the opportunity for continued expansion is present.
    • Explains miller, r. k., food and beverage market research handbook. coffee shops.
    • Explains william d. perreault, j. j, essential of marketing, a marketing strategy planning approach.
    • Explains that starbucks didn't have a marketing plan in place at its inception. the company began selling coffee beans to espresso bars and upscale restaurants in 1982.
    • Explains that starbucks' primary business is that of selling high-premium coffee. specialization allows them to deliver great quality and maintain their customer base. involving technology with their market structure.
    • Opines that a marketing team along with data and analytics is essential to comprising the new product.

    903 words

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  • Analysis of the Starbucks Corporation

    argumentative essay

    In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...

    In this essay, the author

    • Opines that starbucks will grow faster if they sell of most or all of their location because there will be less need in maintaining their stores.
    • Recommends that starbucks implement the following suggestions to ensure future success. to improve customer satisfaction, starbucks should include a section where customers actually ask questions and/or leave comments.
    • Wishes to thank you for giving us the opportunity to serve you better by taking a couple of minutes to tell us how we are doing.
    • Opines that starbucks will grow faster if they sell of most or all of their location because there will be less need in maintaining their stores.
    • Recommends that starbucks implement the following suggestions to ensure future success. to improve customer satisfaction, starbucks should include a section where customers actually ask questions and/or leave comments.
    • Wishes to thank you for giving us the opportunity to serve you better by taking a couple of minutes to tell us how we are doing.
    • Asks how satisfied are you with [product/service]? they answer using the rating scale where (5) means "extremely satisfied"
    • Explains that starbucks' current mission statement is 'establish starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.'
    • Recommends keeping starbucks' mission statement and principles current.
    • Explains that they apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of their coffee.
    • Defines customer satisfaction as the measure or determination that a product or service meets the customer's expectations, considering requirements of both quality and service.
    • Explains that starbucks' success is based on their customers' trust in their people and environment over long periods of time.
    • Explains that a sample survey could be used to get an idea of how our customers feel about our products and services.
    • Explains that starbucks is taking a leadership role in addressing the environmental and social issues surrounding the global coffee industry.
    • Describes how harold schultz convinced the founders of starbucks to open a downtown seattle coffee bar. in 1987, il giornale acquired starbucks retail operations for 4 million dollars.
    • Explains that the united states consumes one-fifth of all the world's coffee, according to the national coffee association (nca).
    • Explains that starbucks has a strong financial position, name recognition, and creative beverage innovators. starbucks is known for their creative innovations of beverages.
    • Explains that starbucks faces international expansion problems and dependence on the united states markets and beverage innovations.
    • Explains that starbucks uses clustering to ensure domination in selected geographical areas. the profitability of international operations and the expected growth of the specialty coffee market will give the company greater leverage into the world market and promote new market expansions.
    • Explains that starbucks' expansion and limited quantity of superior coffee beans may result in a shortage of supply. other factors, which could affect the coffee industry, include weather, political and economic conditions.
    • Explains that starbucks has a cult-like following, serving 25 million drinks every week at nearly 7,000 locations worldwide. starbucks customers are loyal to the company and will not accept substitutes.
    • Explains that starbucks quality is dependent on trading companies and exporters for its supply of green coffee. the company's search for superior standard coffee is adversely affected by multiple factors in the producing countries.
    • Explains that quality green arabica coffee produces the best cup of coffee. fresh roasted coffee is best consumed within five days after roasting, three hours of grinding, and fifteen minutes of brewing.
    • Analyzes starbucks corporation's total net sales for 2001, 2002, and 2003. the company had a total sales increase of $639.9m between 2001 and 2002.
    • Analyzes how starbucks' growth exceeds the typical s&p 500 index growth rate by as much as three times. starbucks has a strong balance sheet, no long-term debt, and $380.0m in cash.
    • Explains that starbucks has a good strategic growth plan to enhance their business and gain market share over their competitors.
    • Recommends starbucks not to change their business to be more like tim horton's and have their own identity.

    5208 words

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Coffee Industry Analysis - 2770 Words (2024)

FAQs

What is the current status of the coffee industry? ›

U.S. coffee chain sales grew by 10% from June 2021 to June 2022 , getting very close to reaching pre-pandemic sales. And chains expanded their footprint, growing the total market size: despite early-COVID closures and staff shortages, there are now 2.8% more branded coffee shops in the US than there were pre-pandemic.

What is the market analysis for coffee in the US? ›

KEY MARKET INSIGHTS

The U.S. liquid coffee market size was valued at USD 6.01 billion in 2021. The market is projected to grow from USD 6.33 billion in 2022 to USD 9.61 billion by 2029, exhibiting a CAGR of 6.17% during the forecast period.

What is the coffee market report 2023? ›

The global organic coffee market will grow from $10.28 billion in 2022 to $11.25 billion in 2023 at a compound annual growth rate (CAGR) of 9.5%.

Is the coffee shop industry growing or declining? ›

The market size of the Coffee Production industry increased 6.6% in 2022. Has the Coffee Production industry in the US grown or declined over the past 5 years?

What is the biggest issue facing coffee production? ›

Deforestation can leave a bad taste in your mouth.

About 1/3 of the world's land is forests, but every year we are losing an average of 134 million hectares. Most of the deforestation is happening in Africa and South America, the main geographies where coffee is grown.

What problem does the coffee industry face? ›

Coffee and climate change

The two species of coffee plant used, arabica and robusta require specific environmental conditions to grow. Over half of the world's suitable land for growing coffee is at risk of being lost or destroyed due to climate change by 2050.

What is the economic analysis of coffee? ›

Coffee-related economic activity comprises approximately 1.6% of the total U.S. gross domestic product. Consumers spent $74.2 billion on coffee in 2015. The coffee industry is responsible for 1,694,710 jobs in the US economy. The coffee industry generates nearly $28 billion in taxes (including ancillary goods)

Is the coffee industry growing? ›

Coffee is one of the most popular and consumed beverages across the globe and its consumption is also rising which is surging the market growth.
...
Report AttributeDetails
Market size value in 2023USD 44.98 billion
Revenue forecast in 2030USD 66.41 billion
Growth rateCAGR of 5.7% from 2023 to 2030
11 more rows

Who is the target market of coffee? ›

According to the most recent studies, roughly 75 percent of Americans consume coffee every day. Your target market may be college students and professionals who are commuting to work or attending class and are looking for a cheap cup of coffee to satisfy their caffeine cravings.

What is the future of coffee industry? ›

The Global Coffee Market is projected to register a CAGR of 4.65% during the forecast period (2022-2027).

What is the future of coffee market? ›

In the Coffee segment, volume is expected to amount to 7.78bn kg by 2025. The market for Coffee segment is expected to show a volume growth of 1.9% in 2024. The average volume per person in the Coffee segment is expected to amount to 0.98kg in 2023.

What is the future of coffee demand? ›

As per Statista's findings, the coffee industry in India is valued at $808 million and is projected to exhibit a compound annual growth rate (CAGR) of 8.9% from 2020 to 2025.

Why is the coffee industry declining? ›

In recent years, though, climate change, pests and declining coffee prices have created a perfect storm that threatens the welfare of millions of producers and their families. Those hurting the most are small producers, especially those with less than two hectares of land.

Is the coffee market oversaturated? ›

L: Coffee is a totally saturated market - In the United States, there are well over 2000 roasting companies, and new ones launching with every passing week.

Is coffee losing popularity? ›

In the 2021/22 coffee year, total production reached 167.2 million 60-kilogram bags of coffee, marking a 2.1% drop from the previous year. Meanwhile, global consumption of coffee increased by 3.3% to 170.3 million bags.

Why do most coffee businesses fail? ›

Lack of Working Capital

Along with the relatively low barriers to entry, some may assume a high return on investment is a sure thing as soon as the doors open. However, a lack of working capital to keep everyday operations going at the beginning of the venture can often be the downfall of a coffee business.

What threatens the coffee bean industry? ›

The coffee berry borer feeds on the coffee berry and lays its eggs inside it, damaging the quality of the beans, reducing yields, and weakening the plant to other threats. This can have particularly devastating effects on smallholder coffee farmers, who can see entire swathes of their crops decimated by the borer.

What are the main factors affecting demand for coffee? ›

First is the price of the coffee and its substitutes such as tea. When coffee increases in price and substitutes decrease in price, there will be a decrease in the demand for coffee. Secondly is an increase in a population whereby an increase in population results in an increase in coffee demand.

How do you analyze coffee? ›

The Five Essentials to Coffee Tasting
  1. SWEETNESS. Contrary to its bitter reputation, the better the coffee, the sweeter it typically tastes. ...
  2. BODY. This is the weight and feel of the coffee on your tongue, one of the easiest qualities for new tasters to grasp. ...
  3. ACIDITY. ...
  4. FLAVORS. ...
  5. FINISH.
May 4, 2020

What are some interesting facts about the coffee industry? ›

Coffee Industry Facts...
  • $96 billion U.S. & $100 billion global industry and growing.
  • 2nd largest traded commodity in the world after crude oil.
  • American coffee drinkers average 3 1/2 cups of coffee a day.
  • 400 million cups of coffee are consumed daily in the U.S.
  • Coffee is ranked the #2 most consumed beverage in the world.

What are the methods of analysis of coffee? ›

Usage of hyphenated techniques such as liquid chromatography–mass spectrometry and gas chromatography–mass spectrometry for identification and determination of coffee constituents is also presented.

What economic factors affect the coffee industry? ›

The coffee trade is also influenced by economic factors such as currency exchange rates and trade agreements, which can impact the price of coffee for consumers.

How can a coffee business be successful? ›

Quality: high quality ingredients, best brewing recipes, consistency, fresh and appealing sweet & savory selections are keys to success. Selection: have the most popular products in the market and something special that makes you unique. Seasonality: take an advantage of seasonal products and phenomenas.

Why is coffee high demand? ›

Furthermore, the market has been growing over the past few years, due to factors such as rapid urbanization, increasing out of home coffee consuming population, rising e-commerce retail sales, growing demand for speacialty coffee, inclining green coffee consumption in emerging economies, and many other factors.

Who is the #1 consumer of coffee? ›

1. Finland — 12 kg/26 lbs — Finland is the world's biggest consumer of coffee on a per-person basis. The average Finn drinks nearly four cups a day.

Who is the biggest consumer of coffee? ›

Introduction
#CountryCoffee Consumption
1United States of America26,651,000 bags
2Brazil22,000,000 bags
3Germany8,670,000 bags
4Japan7,355,000 bags
62 more rows

Who is the biggest buyer of coffee? ›

United States

How powerful is the coffee industry? ›

The global coffee industry is a large and growing market, with Starbucks leading the way with a 33% market share. Over a billion people drink coffee daily, and the industry is worth $102.02 billion as of 2020.

How important is the coffee industry? ›

Coffee is a popular beverage and an important commodity. Tens of millions of small producers in developing countries make their living growing coffee. Over 2.25 billion cups of coffee are consumed in the world daily.

Will coffee become scarce? ›

Labour scarcity and unfavourable weather conditions in Central American coffee farms will lead the world into facing coffee shortages for an “unprecedented” third year in a row, a coffee trader has said.

Will we have coffee in the future? ›

The study examined how coffee-growing conditions will change by 2050 based on projections from several global climate models. Results show that coffee plants will be “drastically” less suitable for cultivation in current coffee-producing regions by 2050 because of the impacts of climate change.

What is the problem with coffee 2050? ›

Coffee bean farmers are already experiencing serious challenges and it is estimated that by 2050, up to half of the world's land currently used to farm coffee may be unusable due to floods, droughts and increased temperatures.

Is coffee still profitable? ›

Did you know that every cup of coffee gives you 300-400 percent in profit? A cup of coffee is often one of the largest revenue makers for a cafe and, when done correctly, has the biggest and best word of mouth benefit than any other part of the business.

What demographic buys the most coffee? ›

Americans Aged 60 or Older Drink the Most Coffee

The most devoted demographic of coffee drinkers in the U.S. is those aged 60 or older.

Will there be a coffee shortage in 2023? ›

“This would imply an unprecedented, third consecutive deficit,” Volcafe said in the report. “We expect the tightest period to begin from August 2023 and continue into 2024, with global stocks, especially robusta, falling to record lows.” Volcafe's bullish projection could drive up prices for coffee lovers.

Why is coffee still important today? ›

Coffee is a popular beverage that researchers have studied extensively for its many health benefits, including its ability to increase energy levels, promote weight management, enhance athletic performance, and protect against chronic disease.

Is there really going to be a coffee shortage? ›

The world will face coffee shortages for an “unprecedented” third year in a row due to lower-than-expected harvest from top grower Brazil, according to coffee trader Volcafe.

What is the future of the coffee market? ›

Coffee Grounds Market Share: The global Coffee Grounds Market is expected to reach a market valuation of US$ 14.2 Billion by the year 2022, accelerating with a CAGR of 5.1% by 2022 to 2032. Decaffeinated Coffee Market Trend: The decaffeinated coffee market is projected to have a significant CAGR of 6.9% by 2033.

Is the coffee industry stable? ›

International Coffee Organisation says coffee prices remained stable during January 2023. Despite a decline in global exports, the organisation reports that the ICO Composite Indicator Price fell by 0.1% from December 2022.

Why are coffee prices rising 2023? ›

While it might seem as though coffee roasters can now cut prices in response, they are also facing rising costs due to sky-high energy costs and widespread labour shortages.

What is the solution to coffee shortage? ›

To create resilience in the face of the coffee supply chain crisis, the solutions I propose are generally from two aspects: increasing the retailer inventory and diversifying the sources of coffee bean supply.

What are the economic issues in coffee industry? ›

Coffee Production

Coffee farmers in these countries often face challenging economic conditions, including low prices for their beans, limited access to credit, and weather that can affect the amount of crops produced. This can make it difficult for farmers to earn a living wage and support their families.

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