Starbucks Situation Analysis

Starbucks Situation Analysis Starbucks, a leader in the specialty hot chocolate industry, has recently decided to test the feasibility of a unused product. Known for its ability to maintain customer loyalty through and through a rich environment and excellent coffee, Starbucks is trying to attack the vociferous coffee market through its product, Via. Before analyzing the product itself and its potential success, we must prototypal look at the macro and micro environments. The first human face of the surrounding environment we must look at is the market climate. The ancient year and a half has seen trying times for legion(predicate) businesses and individuals. While the U.S. economy is recuperating, unemployment is still at 10%: a 5.3% adjoin since 2007 (Yandle, 2009). The average household income has dropped from $145,000 to $138,000 in the same time period. evoke rates are extremely low but look to increase by 50 basis points within the next year. The pomposity rate is at 1% and doesnt look to drive for a while. With the diminished average household income and high unemployment rate, consumer consumption is expected to be low for 2010. This means low retail sales and purchases of non-commodities. Stronger government regulations seem to be inevitable, in hopes of rebuilding scummy businesses.

All in all, many changes are to come from this economic state. Besides looking at the climate, we should also look at the company itself and the industry it is a part of. Starbucks Corporation is a retailer in specialty coffee that also sells complementary food for thought items, cold espresso drinks/ think cold coffee drinks, and beverage related accessories (Mergent, 2010). Starbucks is part of the Hot Drinks subsection of Consumer Packaged Goods Industry. This part of the industry saw revenues of $52.7 one million million million in 2005 and is expected to increase to $59 billion by the end of 2010 (Marketline, 2010). They are also part of the solid food and... If you want to get a full essay, order it on our website: Orderessay

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