PEST(LE) Analysis Essay Example | Topics and Well Written Essays - 1500 words

PEST(LE) Analysis - Essay subjectPESTLE analysis is done to identify the factors which may affect the smooth journey of Starbucks towards it triumph. Starbuck is a largest international coffeehouse chain in the world, which is based in United States. Starbucks aims at selling dripped brew coffee, hot and cold drinks, espresso-based hot drinks, snacks, coffee mugs and coffee beans. Starbucks also have Entertainment division, Hear Music distinguish and also markets books and films (Thompson, 2001). Methods used by Starbuck to increase its market size Starbucks from its foundation in Seattle, Washington, has grown in size as a local coffee bean seller by opening cutting stores all over Seattle. The local growth later slowed but the company expanded in the unknown markets and is opening 7 stores a day worldwide. Today Starbucks market trade in the restaurant constancy rose by 7% from the previous year 23%. The revenue also rose by 11% to $ 3.36 billion. The global sales at store rose by 6% and that increased the affair by 5% and the average spending per visit went up to 1% in average. These figures show the success of Starbucks and also encourage the company to increase its market share. ... These beans ensured dear(p) quality and thus coffee lovers as well as common people relied on this brand. Starbucks thus penetrated in to the market by ensuring their customers penny-pinching quality of coffee. Till November 2012, Starbucks had 18000 company owned outlets worldwide of which 13000 are in United States and the rest in other countries. The company has its outlets in 62 countries more or less the globe and is expanding more to increase its market share in the restaurant industry. In China, Starbucks experienced potential growth and recently there are around 3000 stores. The reason behind the success of the company in China is that it focussed on productivity by means of innovative products and it also saw expansion through the successful working of m arket place channel. In the grocery department, craze for K-Cups and other products have make the brand available in the consumer homes also. Many of the customers of Starbucks have made Starbucks their daily hangouts where they use the free internet connection to interact with their friends and the habit continues with the introduction of new menus. Starbucks from its climax went on unveiling new markets all over the world. Tokyo was the first location for Starbuck outside sexual union America. It established their outlets there in 1996. It entered the market of United Kingdom in 1998. Thereafter it went on entering countries like China, India and expanded their brand them with dignity (Kumar, 2000). Starbucks increased their product line and made their products unique and good in quality. Few of the products are Vanilla Latte, Mocha White mocha, Caramel Machiatto, Caramel Frappuchino and Mocha Frappuchino. Starbuck gives a tall cup of coffee at just $2.00 and $20.00 for the fan ciest drink.