Starbucks PEST and 5forces

Forces Analysis
STARBUCKS PEST and Five Forces
Internal : Strength
External : Opportunity Threat
Marco (PEST)
Micro (5 forces
Starbucks Macro( PEST)
What is PEST Analysis?
PEST analysis is very important that an
organization considers its environment
before beginning the marketing process.
In fact, environmental analysis should be
continuous and feed all aspects of
planning. The organization's marketing
environment is made up from:
Starbucks Macro( PEST)
Political Factors:
1. Relationship between U.S and countries
operating Starbucks or producing coffee beans
2.Industry-specific environmental regulations and
Local government controls.
Starbucks Macro( PEST)
Economic Factors
1.Demand for foods and beverages.
2.Customer’s buying power.
3.Exchange rate and taxation.
4.Changes in disposable income
could influence purchase levels.
Starbucks Macro( PEST)
Social Factors
2.Consumer preferences
3.Changes in lifestyle and
Starbucks Macro( PEST)
Technological Factors
1. Biotech 生物科技 and agricultural development can be
benefit for manufacture.
2. IT developments can improve globalization
3. Use of technology can improve operational efficiencies.
Starbucks Micro (Five Force Analysis)
Porter’s Five Forces represent theoretical framework that is used for
industry analysis and strategy development. Specifically, the five forces
shaping competition within the industry consist of the intensity of rivalry
among the competitors, the risk of entry of new competitors, the
bargaining power of buyers, bargaining power of suppliers and the
threat of substitute products and services (Sinkovics and Ghauri, 2009).
Starbucks Micro (Five Force Analysis)
The threat of new entry.
The threat of new entrants to the industry to compete
with Starbucks is low, because the market is highly
saturated饱和度 and substantial amount of financial
resources associated with buildings and properties are
required in order to enter into the industry.
Starbucks Micro (Five Force Analysis)
The power of buyers
Starbucks customers not possess large amount of
bargaining power because there is no and minimal
switching cost for customers, and there is an abundance
of offers available for them. So the power of buyers is
Starbucks Micro (Five Force Analysis)
The power of suppliers
Starbucks suppliers have high bargaining power due to
the fact that the demand for coffee is high in global level
and coffee beans can be produced only in certain
geographical areas. And for the coffee beans , above
50% from Latin America , 35% from the Pacific Rim,
15% from the East Africa. Moreover, the issues
associated with African coffee producers being treated
unfairly by multinational companies are being resolved
with the efforts of various non-government organizations,
and this is contributing to the increasing bargaining
power of suppliers. So the power of suppliers is high .
Starbucks Micro (Five Force Analysis)
The threat of substitutes
The threat of substitute products and services for
Starbucks is substantial. Specifically, substitutes for
Starbucks Coffee include tea, juices, soft drinks, water
and energy drinks, whereas pubs and bars can be
highlighted as substitute places for customers to meet
someone and spend their times outside of home and
work environments.
Starbucks Micro (Five Force Analysis)
Competitive Rivalry
Same industries : Costa ,Caribou Coffee ,U.B.C coffee ,
small local coffee shops and cafes.
Maxwell House ,NESCAFE ,
Other industries: Dunkin Donuts , Pizza Hut.
Rivalry among existing competitors is high within the industry Starbucks
operates in with major competitors like Costa, McDonald’s, Caribou
Coffee, and Dunkin Donuts and thousands of small local coffee shops
and cafes.

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