Starbucks: Where is the Next Frontier?

STARBUCKS1.1WORLD?S BIGGEST COFFEE SHOPThis burnt umberhouse icon evolved like a fairy tale, from a small, entrepreneur venture that turned into a global powerhouse, through marketing a common uninteresting commodity ? deep brown, turning it into a premium product. Starbucks is a cast of speech synonymous with cappuccinos, lattes and espresso. It has created an industry of its own ? the speciality coffee retail in US. Since it was listed in 1992, the stock has appreciated a whop 2200%. As of closing on 14 declination 2007, the apportion price is USD21.23. (FT.com, 17 Dec 2007) Starbucks? shares sell at 52 times the company?s earnings, making it jolly much expensive than Google?s (which trades at 51 times) (Fortune, 2 Nov 2006). Overall, in comparison with other retailers, Starbucks is still recording optimistic results, scarcely not the stellar performance as expected. Fourth-quarter earnings come up 35%, with a net income of USD158.5 one million million or 21 cents per share. Revenues increased 22% to USD2.4 billion. (FT, 16 Nov 2007). operate margin has dropped from 10.4% from 10.9% imputable to increase in building be and renovations. Current same-store sales emersion stands at 4%, where 3% came from increase in value per customer transaction. This figure is perhaps masked by the 9 cents per cup price encouragement in July 2007. less(prenominal) than 1% came from number of store transactions.

(BusinessWeek, 1 Aug 2007)Current concerns of contend highroad and Starbucks management are warranted with the uncertainty of the US economy. The or so hard-core evidence is its graduation exercise quarterly fall in basis traffic. (FT, 16 N ov 2007). 2007 is the third straight year o! f declining tax growth (BusinessWeek, 18 Jul 2007). Things are definitely changing for this coffee giant. traditionally it had shunned tv commercials but it has recently announced its first television advertising campaign (FT, 16 Nov 2007). 1.2ITS OMNIPRESENCEThere are a... If you fate to suck a full essay, order it on our website: OrderEssay.net

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