Running head: ENVIRONMENTAL ANALYSIS
Environmental Analysis
University of Phoenix
BSM 501
Forces Influencing Business in the 21st Century
Introduction
Starbucks is a dominant multinational coffeehouse chain based in the United States. The corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks consists of 8,505 company-owned and 6,506 licensed stores in over 40 countries, making a total of 15,011 stores worldwide. Starbucks sells drip brewed coffee, espresso drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand ventures beyond refreshments into books, music, and film. They also sell ice cream and coffee through grocery stores. The company is committed to offering the highest quality coffee and the Starbucks “Experience” while conducting business in ways that produce social, environmental and economic benefits for communities.
External Environment
Starbucks uses a strategy when the start to expand that dramatically changes the external environment of the coffee industry for other companies in the market. This strategy includes competitive advantage by product differentiation and creates a niche market of specialty coffees. These are higher quality, exotic coffees from around the world coffees, which are more expensive. “Starbucks fundamentally changed U.S. coffee-buying habits by reinventing the product as a high-quality, high-price drink for image-conscious, upscale buyers” (Gertz, 1995 pg 20). The biggest change is society has now created a market for specialty coffee where before coffee was seen as a commodity. Starbucks is the leader of t ...