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

PEST(LE) Analysis - Essay Example PESTLE analysis is done to identify the factors which may affect the smooth journey of Starbucks towards it success. Starbuck is a largest multinational 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 brand 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 new stores all over Seattle. The local growth later slowed but the company expanded in the foreign markets and is opening 7 stores a day worldwide. Today Starbucks market share in the restaurant industry 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 traffic 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 good 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 good 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 around 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 through innovative products and it also saw expansion through the successful working of grocery channel. In the grocery department, craze for K-Cups and other products have made 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 co nnection to interact with their friends and the habit continues with the introduction of new menus. Starbucks from its advent went on entering new markets all over the world. Tokyo was the first location for Starbuck outside North 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 fanciest drink.