Author(s)

Jingyi Feng, Tong Wu

Corresponding Author

Jingyi Feng

ABSTRACT

In recent years, with the increase of local coffee companies, Starbucks faces more and more competitors in the coffee market in China, which makes it difficult for Starbucks to maintain its original market share. In this paper, we provide an analysis framework with an attempt to help Starbucks mitigate the problems. Firstly, we utilize Strength, Weakness, Opportunity and Threats Analysis to analyze internal environmental and external environments of Starbucks. Then, we use Political, Enviromental, Social, Technoligical, Legal, and Economical Analysis to identify the factors that affect the external marketing environment of the organization. Thirdly, we use Value, Rarity, Imitability and Organization Analysis to analyze the company's sustainable competitive advantages according to the internal resources and capabilities. Fourthly, we use Customer Analysis to determine target customers. Fifthly, we use MECE to find solutions based on needs. Finally, we use Criteria Grid to analyze and find the best solutions. And based on the analysis results, we propose some suggestions for Starbucks- to exemplify, opening pickup windows, introducing tea, and opening experience stores. With these four solutions, we believe that Starbucks will receive approximately $122 million in net income in its first fiscal year in China. It is estimated that the average net income for each fiscal year in ten years is $301 million. These solutions will promote the Starbucks brand image, expand and stabilize the consumer base, and maintain sustainable profits and market dominance and advantages.

KEYWORDS

SWOT, PESTLE, Customer Analysis, MECE, VRIO, Criteria Grid, Starbuck in China