Starbucks Business Strategy: Porter's Five Forces Analysis Report

This report provides an analysis of Starbucks' business strategy, focusing on the application of Porter's Five Forces model to understand the company's competitive environment. The introduction outlines the significance of business strategy and its role in achieving a competitive advantage. The report then delves into the meaning of digital disruption and the Porter's Five Forces framework, explaining each force in the context of Starbucks. These forces include the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and rivalry among existing competitors. The analysis assesses the competitive intensity within the coffee industry and how Starbucks navigates these forces. The conclusion summarizes the key findings and emphasizes the importance of strategic planning for sustained success. The report is supported by references to relevant academic sources.

Business Strategy

Table of content
INTRODUCTION
Porter’s five force model
CONCLUSION
REFERENCES

Introduction
Business strategy signifies plan which is formulated by administration team
of business organisation in order to smooth running of company in an
effective manner. It assists in achieving competitive advantage over
rivalries at Marketplace. It focuses on those strategies which are
implemented by administration team that help in accomplishing vision of
business organisation. This report is carried upon the company named as
Starbucks. It is the American International chain of Coffee houses which is
founded in year of 1971. This assignment will provide discussion regarding
influence of external atmosphere by adopting proper framework and assess
internal ability of organisation. Furthermore, they also provide explanation
regarding porter's five Force model that help in achieving competitive edge
at Marketplace. By executing conception theories as well as model that
helps in conducting different work in an appropriate manner.

Meaning of digital disruption
Meaning of digital disruption
Porter's five force analysis
Porter 5 forces model is determined as a business model that is executed by
various organisations to monitor as well as control competition of a specific
industry. This model is given by Michael porter and offers five forces to
assess competition level in particular industry. The explanation related to
this model in reference of Starbucks which is going to be mentioned below:
 Threat of new entrants this force signifies to establish innovative
organisation in particular industry. In context of Starbucks, this force is
determined is low because respective organisation focuses on operating its
organisation in coffee and beverages sector that helps in increase sales in
future period of time. It is not easy for new organisation to implement their
organisation in that level and there are various rules as well as regulation
that is significant to follow that impose direct effect on business
organisation.

Continue
 Bargaining power of supplier Starbucks focuses on operating its organisation in various nations,
thus the management of organisation focuses on providing superior quality product and services to
its customer in order to satisfy them. The main focus is to achieving competitive advantage over
rivalries Marketplace.
 Bargaining power of buyers it is a significant force because this force imposes direct effect on
organisation. Therefore, it is necessary for business organisations to provide superior quality product
and services to its customers otherwise they switch their brand to other competitive firm which erode
profit of organisation. Therefore, a customer has a wider choice so that it is necessary to provide
them goods according to their need.
 Threat of substitute product there are different kind of organisation that offer similar kinds of
goods and services as compared to its competitive firm during particular phase of time period. There
are different competitive firm provide similar kind of product and services like coffee as well as
beverages to its user in order to satisfy them. Therefore, it is necessary for organisation to provide
them coffee according to their need that help in increasing sales as well as profitability level in future
period of time.
 Rivalry among existing competitive it is determined as an element that it impose direct effect on
organisation. There are different kinds of organisation that operate their functions in coffee sector
that help in achieving competitive advantage over rivalries at Marketplace.

Conclusion
 On given report, it is assess that business strategy signifies plan which
is formulated by administration team of business organisation in order
to smooth running of company in an effective manner. It assists in
achieving competitive advantage over rivalries at Marketplace. It
focuses on those strategies which are implemented by administration
team that help in accomplishing vision of business organisation. This
assignment will provide discussion regarding influence of external
atmosphere by adopting proper framework and assess internal ability of
organisation. Furthermore, they also provide explanation regarding
porter's five Force model that help in achieving competitive edge at
Marketplace. By executing conception theories as well as model that
helps in conducting different work in an appropriate manner.

REFERENCES
 Arslangulov, U., 2017. 11 Samruk-Green Energy LLP. Sustainable Energy in
Kazakhstan: Moving to Cleaner Energy in a Resource-rich Country, p.154.
 Boduljak, R.K., 2019. Situacijska analiza poduzeća na primjeru poduzeća
Ortostep doo Osijek (Doctoral dissertation, Josip Juraj Strossmayer University
of Osijek. Faculty of Economics in Osijek. Chair of Economics and Business
Management.).
 Collins, K., 2018. 12 Strategy, Leadership and Team Building. Transformational
Leadership and Not for Profits and Social Enterprises.
 FIALA, A., 2016. Strategická analýza průmyslové firmy (Doctoral dissertation,
Vysoká škola ekonomická v Praze).
 Hausman, E., 2016. Business model evolution and service professionalization
in micro enterprises: a case study in the ICT consulting realm.
 Ivy, J., 2019. Defining Your Methodology. Crafting Your Edge for Today's Job
Market, pp.103-114.

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