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Starbucks Coffee 3c Analysis

Essay by   •  October 20, 2012  •  Case Study  •  384 Words (2 Pages)  •  10,153 Views

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starbucks 3C (Company,Customer,Competitor) analysis


Starbucks is now operating 10787 stores in the US and 6216 stores outside of US . From the 2009 revenue Starbucks keep raising their profits till 2011. Their objective is to maintain Starbucks as the most recognized and respected company in the world. According to Starbucks annual report 2011, for achieve this goal they will focus on expanding stores to outside of the US also try to get customers satisfactions with giving them new products, new category products and through diverse channels. One of the distinct part of Starbucks is that they offer to the customer various kinds of beverages such many flavor of Frappuccino, latte, special seasonal menus which McDonald's or other competitors don't serve to customer. Considering from these datas, strength of the Starbucks are brand loyalty, quality and Variety products.


Customer tends to consider Starbucks as fine and loyal brand coffee shop because of elegant interior quality coffee and relatively high prices. There are many types of customer satisfactions such products prices, quality and convenient. According to ACSI (American Customer Satisfaction Index) Starbucks got top customer satisfaction in 2008. For its reason their friendly communication, quick service, clean interior and relaxable atmosphere might contributed to get top satisfaction from customers. In 2012 the customer satisfaction rate fell by 5% to 76% comparing year of 2011. The reason of this is coffees higher price . However net revenue in 2011 increased 1.3billion since 2008 . It seems Starbucks customer still demand royal quality coffee even its cost is relatively higher than others.


McDonald's launched Mccafe in 2008. It offers people relatively reasonable price coffee in almost all 12804 stores in US . Since McDonald's upgraded their coffee in 2006 , coffee market competition became more like fierce in coffee store market. Due to the McDonald's participation to the coffee franchise market, Starbucks closed over 890 stores in US . While Mccafe offering reasonable price coffee, Starbucks mainly targeting office workers in middle to high incomes and people who want to buy quality coffee and relaxable atmosphere. Furthermore Starbucks has been focused on coffee bean fair trade. Fair trade system might contribute some of the Starbucks products prices higher. But also make loyalty of Starbucks products.



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