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Starbucks: market structure, competitve impact, pricing

Prepare a paper analyzing the current market conditions of the company/industry you selected for your company/industry overview paper in Week One. Address the following topics in your analysis:

a. Market structure-
b. Impact of new companies entering the market-
c. Prices-

The company is Starbucks Coffee.

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Analysis of Starbuck's Market Conditions

Seattle-based Starbucks Corporation is the leading coffeehouse chain in the world. The company currently has operations in more than 44 countries. The main products offered by Starbucks include a wide variety of beverages, coffee beans and brewing equipment, and a wide assortment of snacks and sandwiches. The company also branched into marketing music and books (The Company, 2008). Starbucks mission statement and guiding principles state that it is their goal to "establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow." The following six Guiding Principles are how they measure the appropriateness of their decisions:

? Provide a great work environment and treat each other with respect and dignity so that a team power can be developed.
? Embrace diversity as an essential component in the way we do business.
? Apply the highest standards of excellence to the purchasing, roasting and delivery of our coffee.
? Develop enthusiastically satisfied customers all of the time.
? Contribute positively to our communities and our environment.
? Recognize that profitability is essential to our future success (Starbucks Fiscal Annual Report, 2006)

The company deduces its revenues from three operating segments: US, international and global consumer products group (CPG). The US and international segments both regard company-operated retail stores and assured constituents of specialty operations. Specialty operations within the US embraces licensed retail stores, foodservice accounts and other initiatives affiliated to Starbucks' core dealing. International specialty operations mainly consider retail store licensing procedures in more than 30 countries and foodservice accounts in Canada and the UK. The CPG segment lets in the company's grocery and warehouse club business along with branded products operations all over the world.

The market structure, in which coffee industry operates, is Oligopoly that is embraced with small amount of firms that control high percentage of total sales. In this kind of market structure there are only a small number of firms that participate in the market and due to this they all are aware of the actions of each other. The largest firm in the coffee industry is Starbucks and the second is Diedrich Coffee In. The present coffee industry is dominated by Starbucks, but still it ...

Solution Summary

Marketing structure, competitive impact and pricing for Starbucks are examined.

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