Situational Analysis (marketing company or product)

Situational Analysis : Starbucks

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Executive Summary

Both leadership and corporate core values works hand in hand for Starbucks to attain market dominance and experience high profitability despite of various barriers in the domestic and international market like tight market competition and economic depression

Table of Contents

Executive Summary .2

Introduction .4

Current Marketing Situation Segments .4

Industry and Customers .5

Marketing Mixed Used .6 Competitors .7 Suppliers .8

Macroeconomic Environment .9

SWOT

Analysis Strengths .9 Weaknesses .10

Opportunities .11 Threats .12

Critical Evaluation of Market Situation .12

Growth Opportunities .13

Recommendations .13

Conclusion .14

References .15

Situational Analysis : Starbucks

Introduction

Known as the top coffeehouse in the industry , Starbucks has been able to maintain its market dominance despite of various issues and economic turmoil that is happening nowadays in the United States . One of the primary reasons why Starbucks remain stable for the past decades would be due to its successful international market operations which provide large chunk on its international entry to Japan in 1996 . Aggressively , Starbucks started to open international branches to various countries in Asia and even in Europe which is already known for its world class coffee beverages and well known coffee houses . Since then , Starbucks dominated the coffeehouse industry not only domestically but also internationally and earn tremendous amount of profit out of their operations

Current Marketing Situation

Market Segment

One of the primary ingredients on Starbucks ' success would be its impressive identification of and successful penetration on its target market segments . Usually , Starbucks targets middle aged customers as well as the teens who want to imitate the western lifestyle . Asians are known for being the number one imitators of the western type of lifestyle . The perceive Starbucks as one of their roads towards experiencing how western life really is and impart it to their daily living . This is the main reason why Starbucks started their international expansion in Japan - one of the fastest growing economies in Asia and embraces western influences . Due to this , Starbucks continued to target teenagers and middle aged people as their primary market segment to many countries including the member countries of the European region . Despite of the tight competition In Europe , Starbucks has been able to successfully penetrate the European market through offering cheaper coffee beverages to middle ages that are price sensitive . In this regard , it is clear that the proper identification or market segments helped Starbucks in its initial stage of penetrating into the international market which it currently dominates

Industry and Customers

The primary reason why Starbucks started exploring the international market in the 1990 's would be due to the market saturation of the American domestic market to coffeehouse industry as the number of small coffeehouse company in the rural areas started to emerge and compete to Starbucks in terms of price level and brand loyalty from the customers (Jung 2003 : 1 . At the end of the day , though the profitability of Starbucks still remains high , the marginal increase...