By: Melisa Magnuson, Megan Keough, and Tamara Sprauer

By: Melisa Magnuson, Megan Keough, and Tamara Sprauer

About Starbucks

• No. 1 brand coffeehouse in the world• 20,000 coffeehouses, 60 countries• Founded in 1971 at Pikes Place Market• Headquarters in Seattle, WA• 149,000 employees• Fun Fact: On average adds 2 coffeehouses a

day since 1987

Merchandise

• Advertises to 25-40 year olds, both men and women:– Coffee– Tea– Food and pastries– Espresso pods– Coffee beans– Drink ware– Music– Books

Key Executives

Howard Schultz• CEO• Age: 60• Net Worth: $2 billionTroy Alstead• Chief Financial Officer• Age: 48• Total Annual Compensation: $4.2 millionSimone Valdez• Senior Buyer

Financials

• $13.66 billion in sales (2013)• Revenue $13.29 billion (2012)• Valued at $4 billion• Specialty drinks count as 75% of sales

Advertising for Starbucks

• Primary target market: women and men aged 25 to 40

• Customers tend to be “urbanites” with relatively high income, professional careers and a focus on social welfare

• Made coffees available for direct order online, in supermarkets, and offered at select food service outlets

SWOT Analysis: Strengths

• Sound financial records • No. 1 brand in coffeehouse segment valued at

$4 billion• Starbucks ‘experience’• Employee management• High Quality

Weaknesses

• Coffee beans price is major influence over firms profits

• Product pricing• Negative publicity

Opportunities

• Extend supplier range• Expansion to emerging economies• Increase product offerings• Expansion of retail operations

Threats

• Rising prices of coffee beans and dairy products

• Trademark infringement• Increased competition from local cafes and

established competitors such as Costa Coffee, McDonald’s, Dunkin Brands, Nestle

• Saturated markets in developed economies

Sources

• http://www.forbes.com/profile/howard-schultz/

• http://www.forbes.com/companies/starbucks/

• http://www.strategicmanagementinsight.com/swot-analyses/starbucks-swot-analysis.html

• http://www.starbucks.com/• http://

www.fanpop.com/clubs/starbucks/images/3208054/title/starbucks-logo-wallpaper-wallpaper