Starbucks Coffee :: Starbucks Coffee Case Study

Starbucks CoffeeTable of ContentsIntroduction 3Product analysis3Product Overview3Market mental synthesis4Competition5Dunkin Donuts7Krispy Kreme3McDonalds8Panera scratch line8Elasticity EstimatesPricing Strategy10Forecast12Determants of Demand13Forecast Model15Forecast compend15Works CitedIntroduction With the economy in trouble, the stock commercialise tanking it is important to start your day with a good cup of drinking chocolate to take on these challenges. Can Starbucks sustain it business position and place in the market? The paper examines Starbucks business and it respective practices.In 1971, the original Starbucks opened in Pike Place Market in Seattle, Washington by three partners named Jerry Baldwin, Zev Siegal, and Gordon Bowker. Their focus was to sell coffee beans and equipment. They purchased grand coffee beans from Peets, a specialty coffee roaster and retailer, during their first year of operation. Later, they began buy coffee beans direct ly from the growers. In 1983, an entrepreneur by the name of Howard Schultz united the company Schultz felt that the company should sell coffee and espresso drinks as healthy as coffee beans. The partners felt that selling coffee and espresso drinks would take international from their primary focus of selling coffee beans. Since the idea did not work, Schultz started his birth company called II Giornale coffee bar chain in 1985. In 1987, the original owners of Starbucks sold their chain to Schultzs II Giornale. Schultz changed II Giornale outlets to Starbucks manacles and quickly began to expand.Starbucks coffee has grown into the largest coffeehouse company in the dry land with 16,120 stores in 94 countries such as in Australia, Canada, China, Puerto Rico, etc. Starbucks has cardinal blends and single origin coffee. Starbucks brand coffee can also be purchased in local stores to brew at home. Starbucks employs all over 140,000 employees worldwide with over five mill ion customers a week. At one point they had natural customers coming in on an average of six times a month while loyal customers come in on an average of eighteen times a month spending averaging $50. Starbucks is one of destiny magazines 100 Best Companies to work for in 2008 and is military control Ethics 100 Best Corporate Citizens for the fourth year.Product AnalysisProduct OverviewStarbucks product line has grown to include fresh brewed coffee, tempestuous and iced espresso beverages, coffee and non coffee blended beverages, Tazo tea, baked pastries, sandwiches, and salads. Starbucks paraphernalia includes coffee grinders, espresso machines, coffee brewers, music CDs, books, movies and gift cards.