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Cuyamaca College Starbucks 2015 Issues Presentation
Im doing a presentation project on starbucks. The timeframe required is 2015 to discuss the issues starbucks faced and what it can do to prevent it. How can we help improve the business and its global strategy.
2015 Issues
– Lack Of Growth/Saturation: Starbucks might still be profitable nowadays, but that’s only because they’re raising prices and of their brand image and loyal customer base. They’re not having any luck with gaining new customers, due to overall saturation and no real innovation outside of a few new drinks. They also rely too much on their home stores. They are getting fewer transactions, raising prices, and want older customers to keep coming back.
https://www.inc.com/chris-matyszczyk/starbucks-has…
https://www.restaurantbusinessonline.com/financing…
– Entry Into International Markets: Starbucks needs to worry about entry into international markets, as some have varying degrees of political restrictions, socio-cultural, and economic and financial problems that they all individually face.
– Premium Pricing: Starbucks is expensive, and they lose out on low-income individuals who cannot get their products. This could prove a problem in places that are economically struggling.
– Competition: Starbucks faces fierce competitors from not only international markets, but local companies as well. Smaller companies take up a lot of the share, and substitutes are also something to look into.
– Expansion: Starbucks used to go at it slow, but nowadays they are going really fast and aggressive when it comes to expansion. With previous failures in Australia with a majority of its stores closing, Starbucks needs to figure out what to do.
