Planning by 2012, Starbucks' Chairman Essay

Open, View, and/or
Download this Document

Total Length: 974 words ( 3 double-spaced pages)

Total Sources: 2

Page 1 of 3

Finally, increasing repeat business through expanded customer loyalty efforts would help to increase sales.

Threats abound. A longer than expected recession could lead to more sagging demand for premium-priced coffee. An ongoing recession will also continue to make it difficult for Starbucks to impose additional price increases at a time when U.S. operating margins are falling because of increased labor and utility costs and increasing coffee prices (MCRoskey, 2008). Dunkin' Donuts and McDonald's are fierce competitors at lower-price points and could always scale up to offer more premium-based products. The company's international expansion plan is extraordinarily aggressive and customers may find that it has failed to meet their cultural expectations for cafes and coffee. This expansion is coming at a time when the company is experiencing problems in its established global markets. Continued growth could further erode the company's brand image and lead to commoditization that threatens the company's ability to charge high prices. Additionally, health conscious consumers are increasingly turning away from sugar-laden beverages such as Starbucks' 440 calorie Grande latte and this trend may spread..

Based on the SWOT analysis in this paper, I do not believe that Starbucks will even come close its goal of tripling annual sales to $23.3 billion by 2012. Much of this has to do with timing and its premium coffee strategy.

Stuck Writing Your "Planning by 2012, Starbucks' Chairman" Essay?

View All Our Example Planning by 2012, Starbucks' Chairman Essay

Have A Custom Example Essay Written

This isn't very appealing to a mass market during a recession. When the recession will end is anyone's guess, but consumers may continue to be more price conscious for some time to come, especially with a product such as premium coffee that can easily be replaced with lower-cost options from Dunkin' Donuts, McDonald's and many other options. Starbucks' strategy that relies heavily on aggressive international expansion is troubling. it's now faltering in global markets where it was previously successful, leading to the conclusion that the company is spreading itself too thin, too quickly and should not forge ahead until it gets these situations under control. Opportunities are global, but markets are local. Mass store openings are likely to fail to capture the culture of vastly different countries and may do more harm to Starbucks image that is increasingly commoditized as it expands. All these factors are likely to outweigh opportunities Starbucks may have for new products and services and for increasing customer loyalty......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Planning By 2012 Starbucks' Chairman" (2009, October 28) Retrieved May 20, 2025, from
https://www.aceyourpaper.com/essays/planning-2012-starbucks-chairman-18163

Latest MLA Format (8th edition)

Copy Reference
"Planning By 2012 Starbucks' Chairman" 28 October 2009. Web.20 May. 2025. <
https://www.aceyourpaper.com/essays/planning-2012-starbucks-chairman-18163>

Latest Chicago Format (16th edition)

Copy Reference
"Planning By 2012 Starbucks' Chairman", 28 October 2009, Accessed.20 May. 2025,
https://www.aceyourpaper.com/essays/planning-2012-starbucks-chairman-18163
   

Open, View, and/or
Download this Document
order custom essay example