Business Strategy and Consumer Behavior

This document explores the relationship between business strategy and consumer behavior. It focuses on Starbucks as a case study and analyzes its mission, vision, and values. The document also includes a SWOT analysis, BCG matrix, and Porter's Five Forces analysis for Starbucks. It discusses the opportunities and threats in the coffee industry.

Business strategy and consumer Behavior

Table of Contents
Introduction................................................................................................................................3
TASK 1......................................................................................................................................3
Starbucks Mission, Vision and Values...................................................................................3
Starbucks competitors values mission and vision..................................................................4
Swot analysis of Starbucks.....................................................................................................4
BCG matrix............................................................................................................................5
BCG matrix of Starbucks.......................................................................................................5
Porters five forces of analyses................................................................................................6
Bargaining Power of Starbucks Coffee’s Suppliers: The sensible size of single suppliers is
an exterior factor that enforces a restrained force on Starbucks. Though, the great diversity
of suppliers fades their negotiating supremacy. For example, traders have several plans and
capabilities that they custom to participate against every other competitor, with the goal of
attainment more profits by contributing more constituents, such as coffee beans, to
Starbucks Organization. The negotiating supremacy of traders is extra faded because of the
high overall quantity. For example, there are various traders of coffee and tea around the
globe. This exterior feature confines the inspiration of single traders. The complete
outcome of the exterior features in this section of the Five Forces analysis is the pathetic
potency or bargaining supremacy of traders on the organization...........................................6

Introduction
Business Strategy is used to analyses the current condition of the organization and provide
directions to achieve goals and objectives of the company. This strategy is contain all
objectives and aims of the firm and also contains the artifact and services that a company
wants to create and the customers whom you need to retail your product and the market.
consumer behavior is the analyses of the person and firm and they choose and custom the
products and services. Consumer behavior study shows that what are the customer needs and
requirement during purchasing of the products. What quality they want and spend on it. This
report is show the analyses of the company what are weakness threats opportunity and
strength of the company and what are the strategies they use for their achievement . this
report also shows the major competitor of the Starbucks. Starbucks is American multinational
brand for the coffee. Starbucks is established in 1971 relatively.
MAIN BODY
Starbucks Mission, Vision and Values
Starbucks is the most famous brand for the coffee. It is a American multinational
brand and founded in 1971 relatively. It formed a exclusive beverage and unique appearance
that tempted to luxury – thirsts of the coffee. Starbucks is working in more than 23000
locations globally. Some unique and commonly known products are caffe Latte, Teavana Tea
and some other liquids like Frappuccino. Starbucks is multinational and very famous brand as
coffee producer so there are so many competitor of the company such as (Costa, Dunkin
donuts, Café coffee day, Tazo) and many other too.
Mission of the Starbucks : Starbucks mission is to encourage and develop the social
essence – one creature, one beaker and one neighbourhood at a while. This statement is show
that what the organization ensures to retain its business in a row. It is clean that aim
customers are given prominence in this trade task. Starbucks strategies are to persistently and
progressively nurture the corporate, one domicile or neighbourhood at a period.
Vision of the Starbucks: Starbucks vision is to create Starbucks as the leading
spreader of the premium coffee in the globe while continuing our unbending values while
rising. They include decent behaviour and kind culture for the organization and for the
consumers.
Values of the Starbucks: To create a environment culture is more decent and fitting
where everybody is comfortable. Stand-in with bravery, inspiring the position quo . Being
existing, involving with limpidity, pride and veneration. Carrying their best in all they do,
holding themselves responsible for outcomes. their enactment ambitious, over the lens of
mortality.

Starbucks competitors values mission and vision
Costa organization is the second prime coffeehouse in the globe after Starbucks. They
expands their business in more than 25 countries and 3000 stores in the globe. In United
Kingdom they have 2000 stores. They reaches with their customer through the advertising
slogan that is ‘a coffee for every mile’. They have goals like have many coffee shops as
possible. Costa coffee is major competitor of the Starbucks.
Mission of the Costa: costa coffee mission has always remained to protect the globe
from middling coffee.
Vision of the costa: They want to become most favourite coffee brand in the globe.
They always want to remain same just like their ingredients, environment , desirable coffee.
Values of the costa: they want to supervise their opportunities every day and create a
positive environment and impact on everyone. They are devoted to their work and create a
good environment for the customer and employees too.
Swot analysis of Starbucks
Swot analysis is used to identify the internal factor of the company that is strength,
weakness, opportunities and threats. What is a good for the company and what are the threats
that create a problem in achieving the goals.
Internal factors and strategies of the Starbucks:
Strength: They have solid brand image. Their scope, capacity and customer base is
growing over time. They have more solid monetarist performance. They have strong spot in
the arcade with the annual profits of $26.5 billion and profit of $3.6 Billion in financial 2019.
They increased their stores globally. Starbucks is acknowledged to have an wide global
system of traders. Starbucks foundations its coffee beans from three coffee manufacturing
provinces. Owing to its finest mixtures and delightful coffees, Starbucks has stretched
globally. It compromises brilliant quality and reliably homogeneous products in all the
places. It delights its employees very fine which ultimately converts into cheerier employees
serving consumers healthy.
Weakness: For many middle levels and occupied customers, they give more exensive
than McDonald’s and other coffee channels. Their products are easy to copy because they do
not use unique products. Some of their goods presents are not associated with the social
morals of other arcades. From last few years Starbucks has recollected a many of in-demand
products so this can be create a bad image of the company and cause for a customer loss.
Opportunities: Starbucks is a multinational brand so expanding their business in the
developing market create a better opportunity for them. Produce a product according to
customer needs and wants would be profitable and create a better opportunities for the
organization. As they are more popular and like by their customers so, Introducing new
flavours and products for the customer would be very better chance for them. According to
the customer needs and choices they start to sell their products online means the customers

can order their choice from the online website also and they can start their own delivery
system to attract more customer and more better experience.
Threats: Some others competitors of the organization provide a coffee in affordable
rate and as Starbucks rate it will become quite less expensive for the customer so it can
become threat for the organization. As they has high competitors in the market and their
ingredients are also not unique means they use common ingredients so it also be thret for the
company. There are many sociocultural threats also for the organization that support small
coffee shops.
BCG matrix
BCG( The Boston Consulting group’s product portfolio)matrix also termed as growth
share matrix. BCG matrix is used to identify the products value and revenues of the company.
This matrix was intended to support the organization with their plans and long term strategies
and opportunities by swotting their collections of products and to decide that where these
products are suitable to invest or to terminate the products. There are four major points of this
matrix that divide this matrix accordingly. Dogs that are used to identify the products with the
low evolution and market share. Cash Cows is used to identify the product with low growth
and high market share. Question mark is used to identify the product with high growth and
low market share and the last is Star that is used to identify the high market share and high
growth of product.
BCG matrix of Starbucks
Question marks: Starbucks provides tumblers, mugs ,t-shirts and many more to their
customer but most of them products are timely. Starbucks is very popular and special brand
so consumer take pride in keeping Starbucks range. So, there is very high demand for the
special designs that are very difficult to get. There is quiet a extensive path to go for
Starbucks in standings of making a robust mark in clothing and broad retail industry. For this
motive, the greatest abode for Starbuck’s commodities is in question mark quadrant.
Star: Subsidising more than 25% to the organization entire revenue, Starbuck’s food
trade plumb has assuredly been the star for the organization. With strategies to dual its food
trade by 2021, the corporation is going packed control and trialling with its food
contributions and possibilities.
Cash Cows: Deprived of a hesitation the cash cows for Starbuck’s is its coffee trade.
The bread victor for the enterprise meanwhile its initiation, Coffee trade has developed dives
and constraints all these ages, serving the business marker solid monetary numbers.
Dogs: in this point there are low products growth with low market share but as
Starbucks this is very high reputed organization so they have good growth of the product as
well as market share.

Porters five forces of analyses
Porter five forces structure is used to analyse the market competition so there are five
forces model that are used to analyse the market so here is the some model that are mentioned
below for the Starbucks organization. Starbucks company is successfully grows with very
good management strategies. This Porter’s Five Forces analysis of the coffee firm restraint
acmes some of the maximum prominent influences that the business’s plans must deliberate.
These approaches are intensive on confirming viable improvement while pleasing.
Bargaining Power of Starbucks’s Customers/Buyers : This power is built on the
inspiration of single consumers and groups of consumers on the universal business
environment. In Starbucks Company’s situation, the subsequent outward factors subsidise to
the solid trading command of consumers. Short converting expenditures. High ancillary
accessibility. Small extent of distinct consumers. So in this factor some is weak force and
some is strong. These solid aspects dominate the element that distinct grips are slight
compare to the organization overall revenues. The minor scope of specific acquisitions
compare to the weak inspiration of single buyers on the trade. Regardless of such flaw, the
additional two exterior factors toughen the trading power of consumers.
Bargaining Power of Starbucks Coffee’s Suppliers: The sensible size of single
suppliers is an exterior factor that enforces a restrained force on Starbucks. Though, the great
diversity of suppliers fades their negotiating supremacy. For example, traders have several
plans and capabilities that they custom to participate against every other competitor, with the
goal of attainment more profits by contributing more constituents, such as coffee beans, to
Starbucks Organization. The negotiating supremacy of traders is extra faded because of the
high overall quantity. For example, there are various traders of coffee and tea around the
globe. This exterior feature confines the inspiration of single traders. The complete outcome
of the exterior features in this section of the Five Forces analysis is the pathetic potency or
bargaining supremacy of traders on the organization.
Threat of substitution of Starbucks : This factor of the Five Forces analysis shows
that alternatives have solid budding to destructively effect Starbucks Coffee’s industry. The
great availability of alternatives creates it easy for customers to purchase these alternatives
instead of Starbucks foodstuffs. For example, alternatives like ready-to-drink brews,
immediate brew powders and sauces, and sustenance and further brews are eagerly vacant
from several channels, such as fast sustenance and fine-dining bistros, retailing equipment,
supermarkets and grocery provisions, and small expediency stores. In totalling, the short
swapping expenses others toughen the risk of alternatives, as it is calm for customers to
purchase alternatives instead of Starbucks stuffs and material.
Threats of new entrants of Starbucks: There are various types of problems and
competitors of this company because as they are highly reputed and multinational brand so
they have to taking care of the all things and requirements of the customer. Starbucks use
common ingredients that are easily imitate by anyone and stolen by anyone so there
ingredients can be used by new entrants as their cost are also high so they have to maintain

their price and quality accordingly to develop more customer base because there are so many
coffee shops that have been positively develop their customer range.
CONCLUSION
From the above information it has been concluded that there are so many competitors
of the organisation so, they have to maintain their progress and standards accordingly. They
have to focused on more opportunities, strength and overcome the threats of the organisation.
For the management of the company they have to follow the above strategies and policies
for the growth of the firm and they have to taking care of the customer needs and
requirements.

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