STARBUCKS
Introduction
I am going to look at Starbucks. Starbucks’ revenue is expected to fall in 2020 and 2021.
Due to the COVID-19 pandemic the UK government closed all non-essential stores on 23rd
March 2020. Starbucks subsequently reopened for takeaway service only on 14th May 2020
and fully reopened on the 4th of July 2020.
Research proposal
In the past, we would have done a street survey to get my answers but as not many people
are going out much there would not be very many results. We then decided to look at doing
an online surveyor email campaign with a link to the survey, but this is sometimes
unsuccessful as most people do not bother reading them.
Findings
We can apply Porter’s Five Forces to the findings of our research.
Starbucks controls 25% of the coffee market and Costa controls 47% of the market. We
also looked at how many stores Starbucks and all of their competitors have. Costa has the
most with 2121 stores then Starbucks has 898 stores in the UK and Café own 650 stores.
Cafe2U who offer delivery to offices have 80 vans. Coffee#1 has 72 stores across the UK.
Muffin break has 62 stores, but with the smallest number of stores is Puccino’s who have 40
stores situated in train stations.
As we know, the marketplace we operate in is very competitive, not just from other well
known brands but the fact that anyone can start a coffee shop. Some customers are very
loyal to us, not just because of our brand or locations but simply the taste of our coffee; this
is mirrored however in as many people not having a taste preference and the ability to drink
coffee from other places without much consideration.
Our bargaining power with Suppliers remains strong and our efforts to allow growers to take
shares in their business helps but other companies are negotiating to achieve the same
relationships and price.
Even if buyers remain loyal, the situation in 2020 with COVID-19 brings new challenges in
the form of the way they purchase coffee. Many used to visit a location on their way to their
office and whether sitting in or taking away, would make it part of their daily routine. This
routine has changed for most people this year and we need to seriously address the
changing work patterns of our customers. Rather than a train or bus trip to work which takes
in their coffee stop, they are now getting up at home and without leaving the house getting
their coffee “fix”.
Introduction
I am going to look at Starbucks. Starbucks’ revenue is expected to fall in 2020 and 2021.
Due to the COVID-19 pandemic the UK government closed all non-essential stores on 23rd
March 2020. Starbucks subsequently reopened for takeaway service only on 14th May 2020
and fully reopened on the 4th of July 2020.
Research proposal
In the past, we would have done a street survey to get my answers but as not many people
are going out much there would not be very many results. We then decided to look at doing
an online surveyor email campaign with a link to the survey, but this is sometimes
unsuccessful as most people do not bother reading them.
Findings
We can apply Porter’s Five Forces to the findings of our research.
Starbucks controls 25% of the coffee market and Costa controls 47% of the market. We
also looked at how many stores Starbucks and all of their competitors have. Costa has the
most with 2121 stores then Starbucks has 898 stores in the UK and Café own 650 stores.
Cafe2U who offer delivery to offices have 80 vans. Coffee#1 has 72 stores across the UK.
Muffin break has 62 stores, but with the smallest number of stores is Puccino’s who have 40
stores situated in train stations.
As we know, the marketplace we operate in is very competitive, not just from other well
known brands but the fact that anyone can start a coffee shop. Some customers are very
loyal to us, not just because of our brand or locations but simply the taste of our coffee; this
is mirrored however in as many people not having a taste preference and the ability to drink
coffee from other places without much consideration.
Our bargaining power with Suppliers remains strong and our efforts to allow growers to take
shares in their business helps but other companies are negotiating to achieve the same
relationships and price.
Even if buyers remain loyal, the situation in 2020 with COVID-19 brings new challenges in
the form of the way they purchase coffee. Many used to visit a location on their way to their
office and whether sitting in or taking away, would make it part of their daily routine. This
routine has changed for most people this year and we need to seriously address the
changing work patterns of our customers. Rather than a train or bus trip to work which takes
in their coffee stop, they are now getting up at home and without leaving the house getting
their coffee “fix”.
