Analysis of Starbucks: Market Position, Revenue, and Growth Strategies

This report provides an analysis of Starbucks' market position, revenue, and growth strategies. It includes quantitative data analysis on the firm's net revenue, number of stores, and market capitalization, as well as qualitative data on its products, pricing strategy, and social media presence. Recommendations are also provided for the firm to improve its customer base and optimize its services.

ASSESSMENT 2 Case study

Table of Contents
Introduction:.....................................................................................................................................3
MAIN BODY ..................................................................................................................................3
Quantitative data analysis:..........................................................................................................3
Qualitative data:..........................................................................................................................7
Recommendations.......................................................................................................................9
Conclusion:......................................................................................................................................9
References........................................................................................................................................9

Introduction:
The main aim of this report is to gain knowledge about the service provision in relation to
the business enterprise. The organisation chosen for this report is Starbucks which is the
renowned multinational brand of coffee-house that is based in America. In addition to this, the
firm was established in the year 1971 as well as headquartered in Seattle, Washington DC. In this
report, the information will be collected by taking use of both the methods such as qualitative as
well as quantitative data collection ways. Moreover, this report will also analyse the information
gathered by taking use of both sources as well as state pros and cons.
MAIN BODY
Quantitative data analysis:
The Starbucks firm is considered as highly competitive as well as wealthy company
which runs its main operations from America. The firm delivers coffee made beverages to its
worldwide customers (Bertels and Desplaces, 2021). The firm basically operates under the
resultant and leisure industry and also provides best quality coffee beverages to the customers at
international level. The firm currently operates via 33,833 stores in approximately 80 countries.
It shows that the company enjoys high market share and also owns a well structured networks at
the international level. In relation to this, the firm has around 15444 stores in the USA country
which denotes that the firm is the market leader in the coffee industry of America. Moreover, the
market value of the firm is around $139.3B this shows that the company has large number of
financial resources and has a great goodwill in the coffee industry market of USA.

Source: Net revenue of Starbucks worldwide from 2003 to 2021, 2022
From the above graph, it can evaluated that the income of the firm has raised from 19.16
billion dollars to 24.61 billion dollars in the year 2021. This massive shift in revenue can be due
to decrease in restrictions of pandemic (Atzori, Shapoval and Murphy, 2018). As the revenue of
the firm in the year 2020 has negatively affected to restrictions on going outside of homes due to
pandemic situation. This graph represents the development of Starbucks company in relation to
increased revenue as the organisation adopts certain growth strategies with the purpose of
attaining higher growth. In relation to this, the firm has also smartly invested in the strategies in
order to develop competitive position in the global market. Moreover, the company also actively
searches for newer global opportunities for further expanding its market share by tapping into
new market conditions.

Source: Number of Starbucks stores worldwide from 2003 to 2021, 2022
As represented in the above graph, the volume of stores has rapidly increased with each passing
year that shows the firm's smart investments in developing more market share. The firm also
undertake use of growth strategies for market growth as described in the business theory of
Ansoff's growth matrix (Bussing, 2021).This allowed the firm in increasing the customer base by
properly analysing the growth opportunities present in the global market. The above graph
represents the market growth as it is clear from the above data that within a year the firm has
developed many stores in various locations. Moreover, the firm is flourishing its operations with
greater pace and is also successful in forming new markets by satisfying demands of new
customers.

Source: Starbucks' Growth: A 20-Year Review, 2014
The market capitalization of the organisation predicts the value of the firm within the
open market as well as it represents the perception of the investors in making payments for the
stocks of the firm. From the above data, it can be concluded that market capital of Starbucks firm
is regularly increasing with certain fluctuations due to change in market trends. The level has
represented that market position is declined in the year 2006-2010 but after this the firm has
attained the fastest recovery (Hui-Jung, 2019). Moreover, the firm has achieved higher important
growth in terms of market cover as well as it also shows the high purchase of the Star-buck
stocks by the investors. This represents that the firm is successfully sustaining its competitive
market image in the global market.

From the information gained about social media presence of company, the Starbucks fir
have 9.6 million followers in their Instagram account which signifies that the firm enjoys great
worldwide reputation. From the image photo, it has been evaluated that the firm is the famous
coffee brand which is successful in terms of attracting large number of customers by posting
creative as well as immersive posts. Moreover, its official Instagram account has 1102 posts
which depicts the development of company in terms of digital marketing(Lee, Jung and Moon,
2021).
Qualitative data:
Starbucks is the coffee chain offering variety of beverages to customers which focuses on
providing customer satisfaction through through fast service. Its products are consumed and
enjoyed by youths in large numbers. Starbucks is the main influencer in this category as youths
considers brand as a luxury. Its packaging of products is wonderful and greatly appreciated by
consumers. The company's beverages cups are unique in design which have a logo of a mermaid
and customers name can be written on it at the back side of the cup. Customers who visit the
coffee shops of Starbucks promote it on social media by posting pictures cups on which their
name is written. Youngsters quite like the beverages,coffee,and smoothies of the Starbucks due
to its luxury brand image.

Company's has specialised in its star product Dark roasted coffee has differentiated it from other
coffee brands. They use espresso machines to make high quality coffee to provide customers
with satisfaction and ensure safety of its employees. Coffee growers and machine makers are the
major partners and stakeholders. It serves top notch quality coffee to its customers by working
with traders and exporters. Company sells its products through licensed and company operated
network of stores.
Starbucks make profits by following the strategy of value based based prices as it charges more
from customers by offering them value that it provides to them. All the beverages that it offers
have different prices according to to their flavours and taste and the level of utility that Starbucks
offer. Starbucks have gained loyal customer base of high income individuals who are brand
conscious who love the taste and services of Starbucks,so the company raises its product prices
every year. Consumer consume the companies product due to high reputation and goodwill.
Company charges best prices for its top notch quality products serving them as its a premium
brand. Consumers considers Starbucks as a expensive brand due to its pricing strategy,which is
not affordable by various income groups.
Company offers various offers and discounts on its website to promote its brand. Digital media
is the main marketing strategy of the firm. It has presence in almost all social media platforms
where it promotes its brand and interacts with customers on regular basis. It provides all the

information related to it products on Instagram,Facebook,website of the company which gives
customers to know about the company.
Recommendations
On the basis of above analyse report it has been recommended that the firm should
change its pricing strategy as this will support the firm in improving customer base. The firm is
also recommended must also optimise its services according the demands as well as reviews
made by customers. Moreover, the firm is also recommended to lay focus the feedback of the
customers and must make proper strategies in order to meet their demands in effective manner.
The company should also regularly see the problems faced by customers and provide solutions in
most timely manner.
Conclusion:
From the above report, it has been analysed that the Starbucks firm enjoys great market
reputation by providing high quality coffee made beverages. In addition to this, the report has
also evaluated the market position of firm by taking use of qualitative as well as quantitative
methods of collecting data.
References
Books and Journal:
Bertels, H.M. and Desplaces, D., 2021. Starbucks in China: What lessons can Starbucks learn
from Luckin?. The CASE Journal.
Atzori, R., Shapoval, V. and Murphy, K.S., 2018. Measuring Generation Y consumers’
perceptions of green practices at Starbucks: An IPA analysis. Journal of foodservice
business research, 21(1), pp.1-21.
Bussing, M.A., 2021. Starbucks. ABC-CLIO.
Hui-Jung, C., 2019. Starbucks in the World. HOLISTICA–Journal of Business and Public
Administration, 10(3), pp.99-110.
Lee, W.S., Jung, J. and Moon, J., 2021. Exploring the antecedents and consequences of the
coffee quality of Starbucks: a case study. British Food Journal.

Online:
Net revenue of Starbucks worldwide from 2003 to 2021, 2022. [Online]. Available through:
<https://www.statista.com/statistics/266466/net-revenue-of-the-starbucks-corporation-
worldwide/>
Number of Starbucks stores worldwide from 2003 to 2021, 2022. [Online]. Available through:
<https://www.statista.com/statistics/266465/number-of-starbucks-stores-worldwide/>
Starbucks' Growth: A 20-Year Review, 2014. [Online]. Available through:
<https://seekingalpha.com/article/2153683-starbucks-growth-a-20-year-review>