Starbucks Competitive Advantage and Competitors: A Critical Evaluation

Starbucks Business
Report

Table of Contents
INTRODUCTION................................................................................................................................3
PART 1..................................................................................................................................................3
Starbucks and their competitors..................................................................................................3
A critical evaluation of the sources of Starbucks competitive advantage and how these differ
from Starbucks competitors........................................................................................................6
Recommendations.......................................................................................................................9
Part 2...................................................................................................................................................11
Starbucks’ Stakeholder Report..................................................................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
Starbucks is an coffee company which is first organized in America.(Kleinbard, 2016) It is
an American organisation, to serving stores in a very broad chain approx around the world. This is a
worldwide brand was established in 1971 and it was marketed by three local businessman to sell
entire coffee beans in high quality. In 1981, with the name of Starbucks Howard Schultz meeting
with the mercantile establishment then they build a resilient business and spread out precise quality
business of coffee adding the brand name of Starbucks. It was a historical case to announcement
when Starbucks was launching by its three founders namely Jerry Baldwin, Gordon Bowher, Zev
Siegl. In 20th century there are many modification in market and company which assisted to
Starbucks getting more successful.
PART 1
Starbucks and their competitors
Even after existence of a leader of market, the Starbucks confront consuming rivalry as this
organisation in Coffee Cafe speciality that is included that as single of the main competitive
administration. The McDonalds, Caribou Coffee, Dunkin Donuts these are tough competitors of
Starbucks. In Accordant to this given case study, in 2015 this company has advanced return or
equity when comparison to its rival. In Starbucks other and shares securities are traded at NASDAQ
and the outline of business is advised that as one of the return bring forth stocks. To be more
punctilious, return on assets of Starbucks is 47.09 % that is more than its rivalries as McDonalds as
ROE of 32. 98 % and 44.50%.
Other than components of arrived back on possession and interest, Starbucks is confront to
aggravated contest with their challenger especially with McDonalds. Accordant to Starbucks, in
2015 total worker of given organisation are 191000 whereas total faculty of McDonalds includes
420000 worker which is even more than the multiple of Starbucks.
It is crucial to gain dependable benefits for organisation due to survive in an impulsive
commercial enterprise of Coffee Café. The net earnings edge of Starbucks is making known as
14.57% but on the other hand net lucre amount of Dunkin Donuts is 23.55%, and of McDonalds is
17.34%. By these figures and statistics, it has been unsubtle that Starbucks face consuming
contention in the business enterprise. Beside this it express that the explanation behind combative
activity scheme of Starbucks and their aim to prolong and endure in marketplace. (Rydén, 2015)
A strategy of business is the collection of assorted program which are formulated with purpose to
get improvement and growth for achievement and development of business. The main intention of
this written report is to develop strategy of business papers including documents, so that internal

and external situation of Starbucks can be examined. Starbucks is a worldwide coffee series which
purpose to ease group by their merchandise. The recent study is separated into two portion (Easton,
2017). The primary part of this report, will regard elaborate section about the company on with its
competitor point. Internal and external situation of this establishment will also be measure with the
aim to supply applicable portrays so that execution following 3 years of the business can be
reinforced.
2) The external Situation analysis
There are lots of external environment affect as well as monitored the market for analysing
the new opportunities. These external environment can be analyse using PESTLE and it is used to
evaluate the macro environment of the coffee industries (Clinton and Whisnant, 2019). For
example:- Starbucks uses these external analysis in order to produce more coffee including their
business. It also analyse by the five forces and by industry life cycle model. The PESTLE stands for
environmental, social, economical, legal, technological and political and these are described below.
 PESTLE:-
Political factor:- The main important in the coffee industry is the production of coffee
which may attain political importance. The political factor pressure the businesses to trade with
ethics. The increasing in demand of coffee in market reflected the industry to make the more coffee
beans in the industry. The fair trade coffee is also responsible for fair price to the growers. For
example, Starbucks is the leading company who uses trade coffee beans by providing fair price to
producers. The different trade coffee also refers according to the different products which uses by
industry to obtain a good socially response.
Economical factor:- These factor have a much stronger impact on coffee production. As it
depends on the economy of the country as they have difficulties or they have raise the coffee trends.
The economic development of many countries depends on the trade good issues. If the consumers
have high economic state then they are able to spend more money on beverages which leads to the
production of more coffee (Glowik, 2017). so, this will impacted on the coffee industries as their
economic condition increases. This can be a huge impact on coffee producers as they are
responsible for high quality of coffee beans.
Social factor:- This factor largely depends as it includes socially. Now a days, many people
are becoming health consciousness which promote them to not intake of coffee much . There are
lots of factors which becomes competitors of coffee industry which includes healthy drinks. With
change and decrease in their production of coffee, the industries are adapting the use of alternative
which can use to promote the health of consumers. The coffee industries are mainly responsible for
fair trade of coffee. The higher fair trade coffee price affect the production of coffee as farmers can
earn more money with the requirement of more coffee.