Micro and Macro Analysis of Starbucks

Running Head : MICRO AND MACRO ANALYSIS OF STARBUCKS
Micro and Macro Analysis of Starbucks
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2MICRO AND MACRO ANALYSIS OF STARBUCKS
Table of Contents
Introduction......................................................................................................................................3
Part A: Competitive Review........................................................................................................3
PART B- Customer Review........................................................................................................5
PART C- Review of Products and Services................................................................................8
PART D- SWOT analysis and issue analysis............................................................................11
Conclusion.....................................................................................................................................14
Bibliography..................................................................................................................................15

3MICRO AND MACRO ANALYSIS OF STARBUCKS
Introduction
Starbucks is a famous American coffee company and the coffee house chain. In the year
1971, the company was founded in Seattle, Washington. As of now the company operates in
almost 30,000 locations worldwide. The brand is considered to be the primary representative of
the “ second wave coffee’ having distinguished itself initially from the other coffee serving
brands in the United States. It excelled the other brands by quality, taste and the customer
experiences too. The darkly roasted coffee of Starbucks caught the attention of people. The
founders of Starbucks were Jerry Baldwin, Zev Siegl and Gordon Bowker. The aim of the report
is to conduct a micro and macro environmental review of the Starbucks corporation. It has to be
noted that every business organization is a part of the business environment in which it operates.
Since there are many factors and no business can work in isolation, the macro and the micro
analysis need to be done. The micro environment can impact on the business activities directly
whereas the macro environment is considered to be the general business environment. It also
influences the business groups at large. The business environment needs to be learnt properly so
does the effects of it on the business.
Part A: Competitive Review
The direct competitors of Starbucks- Few of the direct competitors of Starbucks are Costa
Coffee, McDonalds McCafe, Café Coffee Day.
Costa Coffee- This is considered to be the second largest coffee brands in the entire world and
Starbuck is the largest in the United Kingdom. Costa Coffee has expanded over mover than
30,000 stores and almost 30 countries. In the middle of the year, Costa Coffee has moved its
coffee roaster to Essex and invested almost 40 million pounds. In turn, it has increased the
capacity of roasting to 44,000 tons of coffee beans. In the later part of 2016, the net income of
Costa Coffee was almost 153 millions. The company reaches its customers by its slogan ‘a
coffee for every mile’. The aim of the company is to have maximum coffee shops.
McDonalds McCafe- McCafe is one of the competitors of Starbucks and gaining huge market
share. The reason is that there are various number of stores across the globe. In the year 1993, it

4MICRO AND MACRO ANALYSIS OF STARBUCKS
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was founded in Australia and can be considered as real espresso coffee. Again in the year 2015,
McCafe earned the position of top three coffee sellers. As of now, it is considered to be the
largest coffeehouse in New Zealand and Australia too.
Café Coffee Day- It is another international company and the biggest producer and exporter of
Arabica beans in the entire Asia. It began in the year 1996 and the initial investment of the brand
was over 160 million dollars. At the middle of 2015, there has launched 1500 outlets across 28
states in India. It is also famous for cutting down the prices vertically. Having started in Asia, it
also expanded to few of the countries in Africa, Nepal and Czech Repulic too. The initial
marketing strategy of the brand was through the logo used for creating their market positioning.
Positioning Map-
Starbucks’ Positioning of itself- It has been found that Starbucks has positioned itself as a
specialty premium retailer of coffee having a strong and well-known brand image. Since,
Starbucks is a premium coffee brand, its target market consists of the middle and also upper class
people with disposable income. The reason of Starbucks’ being so successful is the quality and
experience it offers to the customers. The image and experience of Starbucks is one of the key