Starbucks Coffee Company
The story begins in 1971 in Seattle Washington, back then Starbucks was just a single
store in Seattle’s historic Pike Place Market, offering some of the world’s finest fresh-roasted
whole bean coffee. “The name, inspired by Moby Dick, evoked the romance of the high seas and
the seafaring trading of the early coffee traders.” (Starbucks Company Profile). It wasn’t until the
mid-1980s when Starbucks started offering brewed coffee and espresso beverages that they have
become so famous of.
We will focus on some important pivot points in the marketplace that have affecting the
coffeehouse industry. This market domain has evolved a great deal, “no one knows exactly how
or when coffee was discovered, though there are many legends about its origin” (National Coffee
Association). There are many factors that will have an affect the overall performance within the
marketplace. The urgent challenge to become sustainable, consumer behaviors, legal
associations, economic factors.
The coffee industry in the United States is forecasted to generate more than 31 billion
dollars in revenue this year (Statista), they make up just a small sector of the food and drink
industry. Starbucks Coffee Company, founded in 1971, has grown in an international brands,
with over 21,000 stores and owing about 32% of the market share, they continue to lead the
industry in sustainability and innovation.
Recent market research reflects that the percentage of Americans who drink a cup of
coffee every day declined for the third straight years, the annual National Coffee Drinking
Trends shows that 59 percent of American drink a daily cup of coffee, down from 61% percent in
2014 (Fortune.com). Instead the classic American coffee break has gotten a makeover, recent
This study source was downloaded by 100000850417103 from CourseHero.com on 11-01-2023 07:06:27 GMT -05:00
https://www.coursehero.com/file/13094986/Starbucks-Coffee-Company/
, numbers show that single-serving coffee brewing machines like the Keurig is the second most
popular brewing system, with 29 percent of American coffee drinkers using them in 2014.
It’s not the price that is bringing this significant change in the way consumers drink
coffee, the price comparison shows a unit of K-cups, the small capsules that contain a single
serving off coffee grounds, cost nearly 20 U.S. dollars more than a unit of traditional roast-and-
ground coffee. But for many consumers price is not the determining factors, the efficiency,
quality and array of choices offered, it’s a convenient alternative to the local coffee shop
(Statista: The Statistical Portal).
There are some obvious factors affecting the firm’s business, some of the environment
factors Starbucks should worry about are: environmental rules and regulations, environmental
disasters in countries that produce coffee beans, and global warming. The future of coffee
depends on sustainability, an upwards of 25 million farming families rely on coffee to survive,
especially in developing countries (National Coffee Association) and they are extremely
vulnerable to the consequences of climate change. From changes of improving the conditions at
origin, recycling packaging materials, reducing emissions, and eco-friendly facilities.
Starbucks agronomists (branch of agriculture dealing with field-crop production and soil
management) are on the ground working with coffee farmers every day, they see firsthand about
the impacts from the climate change, the increase in erosion and infestation by pets and coffee
rust, coffee farmers are reporting shifts in rainfall and harvest patterns are hurting their
communities and shrinking the usable land.
Starbucks believes that it’s time to increase our investments in a solution, in the stores
and at the farms. Because 80 percent of their greenhouse gas emissions are attributable to energy
This study source was downloaded by 100000850417103 from CourseHero.com on 11-01-2023 07:06:27 GMT -05:00
https://www.coursehero.com/file/13094986/Starbucks-Coffee-Company/
The story begins in 1971 in Seattle Washington, back then Starbucks was just a single
store in Seattle’s historic Pike Place Market, offering some of the world’s finest fresh-roasted
whole bean coffee. “The name, inspired by Moby Dick, evoked the romance of the high seas and
the seafaring trading of the early coffee traders.” (Starbucks Company Profile). It wasn’t until the
mid-1980s when Starbucks started offering brewed coffee and espresso beverages that they have
become so famous of.
We will focus on some important pivot points in the marketplace that have affecting the
coffeehouse industry. This market domain has evolved a great deal, “no one knows exactly how
or when coffee was discovered, though there are many legends about its origin” (National Coffee
Association). There are many factors that will have an affect the overall performance within the
marketplace. The urgent challenge to become sustainable, consumer behaviors, legal
associations, economic factors.
The coffee industry in the United States is forecasted to generate more than 31 billion
dollars in revenue this year (Statista), they make up just a small sector of the food and drink
industry. Starbucks Coffee Company, founded in 1971, has grown in an international brands,
with over 21,000 stores and owing about 32% of the market share, they continue to lead the
industry in sustainability and innovation.
Recent market research reflects that the percentage of Americans who drink a cup of
coffee every day declined for the third straight years, the annual National Coffee Drinking
Trends shows that 59 percent of American drink a daily cup of coffee, down from 61% percent in
2014 (Fortune.com). Instead the classic American coffee break has gotten a makeover, recent
This study source was downloaded by 100000850417103 from CourseHero.com on 11-01-2023 07:06:27 GMT -05:00
https://www.coursehero.com/file/13094986/Starbucks-Coffee-Company/
, numbers show that single-serving coffee brewing machines like the Keurig is the second most
popular brewing system, with 29 percent of American coffee drinkers using them in 2014.
It’s not the price that is bringing this significant change in the way consumers drink
coffee, the price comparison shows a unit of K-cups, the small capsules that contain a single
serving off coffee grounds, cost nearly 20 U.S. dollars more than a unit of traditional roast-and-
ground coffee. But for many consumers price is not the determining factors, the efficiency,
quality and array of choices offered, it’s a convenient alternative to the local coffee shop
(Statista: The Statistical Portal).
There are some obvious factors affecting the firm’s business, some of the environment
factors Starbucks should worry about are: environmental rules and regulations, environmental
disasters in countries that produce coffee beans, and global warming. The future of coffee
depends on sustainability, an upwards of 25 million farming families rely on coffee to survive,
especially in developing countries (National Coffee Association) and they are extremely
vulnerable to the consequences of climate change. From changes of improving the conditions at
origin, recycling packaging materials, reducing emissions, and eco-friendly facilities.
Starbucks agronomists (branch of agriculture dealing with field-crop production and soil
management) are on the ground working with coffee farmers every day, they see firsthand about
the impacts from the climate change, the increase in erosion and infestation by pets and coffee
rust, coffee farmers are reporting shifts in rainfall and harvest patterns are hurting their
communities and shrinking the usable land.
Starbucks believes that it’s time to increase our investments in a solution, in the stores
and at the farms. Because 80 percent of their greenhouse gas emissions are attributable to energy
This study source was downloaded by 100000850417103 from CourseHero.com on 11-01-2023 07:06:27 GMT -05:00
https://www.coursehero.com/file/13094986/Starbucks-Coffee-Company/
