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Starbucks: Business Details, Marketing Strategies And Analysis

Company information:

Company name     Starbucks
Sector                      Coffee shop
Founded                 31.03.1971
Founder(s)               Jerry Baldwin, Zev Siegl, Gordon Bowker
IPO date                  Friday, 01.07.1994
Location                  Seattle, Washington, US
Website                   www.starbucks.com

Fundamentals and financials:

Revenue                              $19.16 billion
Operating income             $3.6 billion
Employees                          238000
Net income                         $2.76 billion
Total assets                         $12.45 billion
Total equity                         $5.82 billion
Company management: Howard Schults (Executive Chairman), Kevin Johnson (President and Chief Executive Officer)

Out of all global retailers currently involved with selling specialty coffee, Starbucks may be the most deserving of attention. It’s the largest chain that sells coffee, and just like the majority of other huge businesses, it rose from very humble beginnings.

Its story began in 1971 when a single store opened. Fast forward to now, there are over 24 thousand storefronts and the company has established itself as the gourmet beverage chain.

The brand starkly contrasts with other companies that occupy similar market areas. Although Starbucks always tries to distinguish itself from others by providing classy service and high-quality materials. Explore more about the enterprise with this list of materials.

Financial Data

Profits can be in part attributed to the high price point, but the financials go way deeper than that.

Total revenue of $21 billion (with gross profit of roughly $13 billion) speaks a lot about the successful strategy of this venture.

Even though Starbucks is largely reliant on the American market, approximately ¾ of business is conducted in the NA segment; it is not even a problem in the grand scheme of things. With total assets estimated at $4,7 billion, this company sits comfortably at the top of coffee retailing.
More on balance sheets and statements below.

Marketing

Over 200 people are involved with Starbucks’ marketing. These specialists are in charge of promoting new product campaigns via a variety of channels: social media, print advertising, events, promotions and direct marketing.
Starbucks is often cited as being home away from home, and everything the company does is aimed at creating a cozy and convenient environment.

First and foremost, focus on the product is maintained. Which, in turn, generates attention from premium customers.
On top of that, the funding for marketing initiatives gets increased each year, and it’s likely to reach a mark of $400 million per year.
Associated details below.

Structure & Operations

A sufficient workforce is required in order to serve a variety of high-quality coffee and beverages to clients. The company hosts 240 thousand employees working all over the globe. Curiously, every employee is labeled a “partner” internally. Seems like a trivial detail, but it goes to show that Starbucks’ policies are based on mutual respect. This venture came up with a courteous system of interaction and considers their “partners” to be an invaluable asset.
Corporation avoids franchising and keeps every single of their stores in personal possession.

More about structure and operations can be found below.

Analysis

This chain aims to maintain its success and grow exponentially.
The company received widespread recognition as being the top coffee retailer in the world. Hence why it’s time to get into the nitty-gritty of their operations.

Starbucks requires a huge supply base to deliver and maintain deliveries, so how does the company retain its scale and keeps a competitive edge?
Even though the company heavily relies on the US market for the majority of its profits, there is a healthy presence in 60 countries.

There are countless objectives and strategies at play here, all that’s left of you is to find suitable material to dive right in.

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