Starbucks’ global reach makes it essential for the company to find its way around intricate political and economic networks, make adaptations, and use technology to reach out, focus on environmental preservation and respect numerous legal differences. Starbucks is concerned about the entry of new maintaining relations with a supplier. Having a relationship with a supplier does not necessarily require preferential treatment for just one particular supplier or supplier partnership management. It should involve maintaining the collaborative connections that link a variety of distinct products and services across outsourcing suppliers. The idea is to foster better working relationships among all parties. It should involve maintaining the collaborative connections that link a variety of distinct products and services across outsourcing suppliers. (Starbucks Reports Record Q1 Revenue but Lowers Outlook as Consumer Spending Falls in Some Markets, 2024).
Table 1 Pestle Analysis
| Factors | Description |
| Political | Exposure to different political conditions and regulatory environments in international markets. |
| Economic | Effects of global economic fluctuations, market saturation in the U.S., and strategic expansion in growing economies like China. |
| Sociocultural | Changing consumer preferences towards healthier products and the role of coffee culture in social engagement. |
| Technological | Adoption of digital initiatives, mobile payment systems, and sophisticated supply chain technologies. |
| Environmental | Commitment to sustainable sourcing practices and managing the impact of operations on the environment. |
| Legal | Adherence to international trade, labour, and health regulations across different regions. |
Table 1(Rothaermel, 2017)
Table 2 Porter’s Five Force Analysis
| Force | Description |
| Threat of New Entrants | Relatively low due to Starbucks’ strong brand and market saturation, though entry barriers are not insurmountable for new speciality coffee shops. |
| Bargaining Power of Suppliers | Moderate, with Starbucks’ purchasing power being significant but balanced by the need for high-quality and ethically sourced beans. |
| Bargaining Power of Buyers | High buyers have numerous alternatives and are sensitive to price and quality. |
| Threat of Substitute Products | High, due to a wide range of beverage choices and the increasing trend of at-home coffee brewing. |
| Rivalry Among Existing Competitors | Intense, with direct competition from other coffee chains and indirect competition from fast-food outlets expanding into coffee offerings. |
Table 2(Rothaermel, 2017)
References
Rothaermel, F. T. (2017). Starbucks Corporation. McGraw Hill Education.
Starbucks reports record Q1 revenue but lowers outlook as consumer spending falls in some markets. (2024, January 30). AP News. https://apnews.com/article/starbucks-financial-results-earnings-16e557700db903830f8deb11c21f09c4
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