Sample Paper on Starbucks


Starbucks Corporation is one of the most successful coffee stores in the USA. The firm was started in the US in 1981 by Gerald Baldwin and Gordon Bowke. It started out as one store and eventually become popular by opening many stores around the country under the leadership of Howard Schultz. Since its inception, the company has opened over twenty thousand stores worldwide. Some of the stores in other parts of the world operate as franchises while the rest in America operate as single shops. This paper is an analysis of the Starbucks Corporation from various angles. It looks at internal and external analysis of the firm, and gives recommendation for future progress.

The Firm’s Industry Environment

The Starbucks Company operates in the coffee industry, which is a sector that has many similar stores offering coffee of different qualities and tastes. The competition in this industry is very high and for any firm to remain competitive, it must aim to provide the best goods and services. Starbucks had been at the top of its operations for a long time. The competitive advantage of this organization attributes to its high quality coffee and other products. It is known for offering other products, such as food, beverages such as beers, and pastries. The firm has an advantage of venturing into entertainment and music, which also makes it possible to attract many clients. Despite high competition within its industry, Starbucks has recorded increases in profit for a long time.

Strategic Alternative 1

The Starbucks Company is a diversified firm that offers variety of services; it should keep improving its diversified ways so that it can increase its profitability, and stay competitive in the industry. The firm may also decide to use current technological advantages that exist in the modern world to reach many clients. For example, it can decide to open online stores that will enable its clients to access its goods and services at the comfort of their homes. They also need to come up with home delivery methods for its clients. Customer satisfaction and maintenance of customer value is another important factor that Starbucks should consider if it wants to remain competitive and increase its profits. There are various methods of making high quality coffee that are invented every day. Through its research and development department, the firm may decide to come up with unique ways of making coffee that is more suitable for their customers.

The Firm’s Internal Environment

The internal environment of the Starbucks Corporation consists of employees with diversified knowledge and skills. The firm has many talented workers and dedicated managers who ensure that all its operations occur as planned. Looking at its SWOT analysis, the firm has strengths, such as being the best coffeehouse in the world. It has a large client base that is also loyal to its products. The company has enough funds to increase and finance its operation. Its ability to franchise and achieve high competitive advantage is an advantage to the firm. It has an up to date research and development department. It is a globally recognized company.

The weaknesses of the firm include working in a highly competitive industry, and it has a tendency to keep changing its management. The main opportunities of the firm include the ability to produce high quality products. It can easily expand to other location since it is well known globally, and it can franchise in other regions successfully. It controls market entry, and easily dictates the barriers to entering new markets and other strategies in the industry. The only threat to the firm is that there is slightly high competition from new entrants in the market, which makes it divide its non-loyal customers.

Strategic Alternative 2

The firm’s main internal strengths are the talented and dedicated workers. They can exploit this by ensuring that they provide training to their employees on a regular basis so that the employees may know developments that occur in the sector. Training will also increase talents in the organization. Research and development is another strong factor in the firm. Therefore, the organization must ensure that they allocate enough resources for conducting research on a regular basis. This will help them use the modern technologies to find out more about their clients, how to make them happy, and how to improve the qualities of their products.


The Starbucks company needs to offer regular training to its employees to increase its relent pool. It should increase its research and development knowledge to incorporate new technologies. Market diversification is an important factor for the firm to consider. Even though it is diversified in its operations, there is much it can do to become more competitive. Starbucks should aim at discovering new methods of manufacturing and presenting its product to the customers. Another method that will keep the operations of the company products is ensuring customer satisfaction in all its stores. Customer value is also an important factor to consider for attracting and maintaining its client base.