Starbuck and Apple Prtnership

* Interest rates – An increase in interest rates in the USA would result in plans for investment and expansion being deterred by the Starbucks resulting in decreased productivity of the company. Furthermore, increased expenses for the consumers such as rising mortgage repayments would result in decreased availability of income to spend on luxurious products such as coffee. Low interest rates should have the

Starbuck 's has become a staple of American culture and for the most part, if you are in your 20 's, you have grown up with it and this has become what you expect coffee to be. Who can blame you, it is everywhere, so "wake up and smell the coffee"! I plan to tell you about the strategies that this giant uses, that have taken it from humble beginnings to a worldwide phenomenon. I also intend to explain how Starbucks is taking China by storm, mainly because marketer / entrepreneur Howard Schultz 's vision and mission statement is shared by everyone in the company!An excerpt from the London Financial Times published in February 2006 states the following in regards to Starbucks entering the Chinese market; "Mr Schultz said the company was

Starbucks handpick all of the music played in their stores and create unique compilations of their own. For example, compilation of pop band “Maroon 5”, Latin Alternative Music "Cafe con Musica" to motherhood-inspired album “Every Mother Counts 2012”.

Starbucks celebrates 40 years with 17,000 stores in more than 50 countries (Goals & Progress, 2010). Starbucks thrive on their values as a company to improve the lives of people who grow their coffee, neighborhoods where the company does business, and they care for the environment (Goals & Progress, 2010). Starbucks strives to incorporate good business practices and ethics across the globe not only for the enhancement of the company but also for the enhancement of the stakeholders and the communities the company impacts. Starbuck’s mission statement is “to inspire and nurture the human spirit. As said by Howard Schultz, Chairman, President and Chief Executive Officer, in the 2010

It can expand its supply network by increasing its global presence. Starbucks has great opportunities in growing economies. It should create coffee houses in places such as India and China, where it has invested modestly now. Starbucks can also broaden its target market by offering more products. They could perhaps increase the number of stores that sell beer and alcohol, which could considerably increase their sales.

Specific target audience: In the 1990’s, Starbuck primarily targeted towards the affluent, well-educated, white-collar patrons (skewed female).

in the specialized coffee industry, Starbucks cemented its hold on the market by hosting free wireless

As was discussed previously, the partnership between Apple ITunes and Starbucks to develop the ITunes store, has added, in fact, a third entity, AT&T. AT&T

In doing so, Starbucks positioned itself to welcome music lovers who could grab a cup of coffee and burn songs onto CDs. (Industry Snapshot).

The Starbuck’s board of directors is normally comprised of 12 directors, but due to current succession planning of a board member there are currently has, two of which are internal members of the Starbucks Company; the remaining independent, external directors meet the independence requirements set forth by the Nasdaq Stock Market. These highly qualified directors bring an immense amount of external insight and experience to the Starbuck’s board. Each member of the Board of Directors is chosen for their level of experience in the food and beverage industry, consumer products and food service industry, brand marketing experience, international operations and distribution, domestic and international public policy, digital and social media

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

“Starbuck’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (as cited in Our Company, 2014). Starbucks vision is to “Establish Starbucks as a premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Shah, Hawk, & A, 2011) In order to perform our mission and see our vision we must conduct business by the following values:

Starbuck has entered into these other categories through partnerships and joint ventures. These relationships make sense, because every partnership is with a company in an industry related to Starbuck’s industry (e.g. Pepsi, Kraft, Unilever, Green Mountain etc.). Starbucks does not enter into partnerships with only one company; but collaborates with many companies, that are the respective leaders in their industry. The coffee company uses many of their partners as guides to learn from, and build relationships in a particular industry. Strategically this makes sense because Starbucks is gaining knowledge and not spending a major amount of money. Therefore, when the

Starbucks have shown in the past that they are very good at taking advantage of opportunities. In an strategy alliance with Hewlett Packard, customers could create their own music CD within a Starbucks coffee shop. Thus the company could look for these kind of opportunities to seize. In addition, new markets for coffee are emerging such as India and the Pacific Rim nations, also Europe which is getting more and more accustomed with the brand name “Starbucks”. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.