Verified Document

Future Trends In Business Essay

¶ … Starbucks runs coffeeshops, and therefore is beholden to a number of different trends. First is the rise of economies elsewhere around the world, in particular the BRIC countries. The second trend is climate change. The third trend is the rapid pace of technological change, in particular mobile and the post-mobile Internet of things. A fourth trend is maturation of the domestic market, and a fifth trend for Starbucks is ongoing attempts by competitors to win back market share that they have lost to Starbucks in recent years. The first trend is the emergence of developing world economies. While many major economies are in a state of slow growth, or no growth at all, many emerging market economies are growing quickly. There are a lot of companies that rightly see this as a tremendous opportunity and Starbucks is one of them. The company has been active in the Chinese market for several years already, and its CEO has gone on record touting China as the future of the company. The company has tailored its offerings to meet the needs of this large and rapidly-growing market, making it one of the most successful foreign companies in China today (Burkitt, 2012).

Furthermore, India is another market that has a large population and that has seen rapid economic growth. India has some coffee culture in the south, but in the...

Starbucks nevertheless has ambitious plans to pursue more growth in India, a market it just entered recently (Shukla and Balasubramanyam, 2012).
The implication of these two trends is that Starbucks must divert a substantial amount of resources, both capital and human resources, to building out its presence in these massive markets as quickly as possible, in order to gain advantage over competitors, many of which have the same ideas about exploiting these opportunities. While this may leave fewer resources for the domestic market, the company feels that this is a reasonable trade-off.

The second major trend is climate change. This affects businesses in a lot of ways, but the threat to Starbucks is existential in nature, because of the harm climate change is doing to coffee crops around the world (Carrington, 2014). Initially the challenge for Starbucks will be to access supply, which it can do by outbidding rivals, many of whom compete on low cost strategies. Starbucks, on the other hand, has superior pricing power over its customers, and is therefore in a better position to pass higher input costs onto its customers. In addition, the company can funnel some its capital into exploration of coffee strains that are able to better withstand the new climate reality.…

Sources used in this document:
References

Burkitt, L. (2012). Starbucks plays to local Chinese tastes. Wall Street Journal. Retrieved March 15, 2015 from http://www.wsj.com/articles/SB10001424127887324784404578142931427720970

Carrington, D. (2014). How climate change will brew a bad-tasting, expensive cup of coffee. The Guardian. Retrieved March 15, 2015 from http://www.theguardian.com/environment/2014/mar/28/climate-change-bad-expensive-coffee-ipcc

Favaro, K., Romberger, T. & Meer, D. (2009). Five rules for retailing in a recession. Harvard Business Review. Retrieved March 15, 2015 from https://hbr.org/2009/04/five-rules-for-retailing-in-a-recession

QSR. (2014). The QSR top 50. QSR Magazine. Retrieved March 15, 2015 from http://www.qsrmagazine.com/reports/qsr50-2014-top-50-chart
Shukla, G. & Balasubramanyam, K. (2012). All perked up. Business Today India. Retrieved March 15, 2015 from http://businesstoday.intoday.in/story/starbucks-in-india-how-other-cafe-chains-would-react/1/22481.html
Cite this Document:
Copy Bibliography Citation

Related Documents

Future Trends in Public Administration
Words: 1160 Length: 4 Document Type: Research Paper

It is important to note that while we will experience globalization, similarly we will experience further integration. This integration will be hierarchical as well as raise the specter of massive domination and control. Moreover, there will be new sectors of society who will interact in new and innovative ways, for instance via established policy networks made up of various groups (government, business among others) that will actively participate in the

Future Trends an Evaluation of
Words: 2234 Length: 5 Document Type: Term Paper

The implications for consumers are significant in that marketing strategies and overall programs more aligned to their specific needs, and for the organization, better and more accurate reporting and compliance while having more aligned marketing strategies. The focus on these three aspects coming together mean more efficient service to customers while enabling organizations to have more relevant products, services, and strategies for new and existing customers. Supply chain strategies get

Future Trends in Globalization the
Words: 1426 Length: 4 Document Type: Term Paper

Impact of Technological Factors on Global Business. Innovations in technology, most especially in information and communications technology but in transportation and supply chain management as well, have represented some of the fundamental driving forces driving globalization in recent years and it is reasonable to expect the impact of this force to continue to accelerate in the years to come, but the jury is still out on the precise level of importance

Future in Business and Fashion: My Personal
Words: 882 Length: 3 Document Type: Admission Essay

Future in Business and Fashion: My Personal Statement When you know that you want something, you've just got to go for it. At least, that's what my parents always said to me. When you're young, you think that things like this are cliche. Sure, you're supposed to say that, you're my parents. Right? Parents are supposed to be there to uphold your dreams and lift you up so high that

Future Trends in the Field the Secret Chef Intern
Words: 1324 Length: 5 Document Type: Term Paper

Culinary Trends There are many different types of trends within the culinary field. One such trend is known as Culinary sessions which are performed by companies such as the Secret Chef. As an intern at the secret chef, responsibilities include prepping the food and portioning it out for individuals who are attending culinary sessions each night. Interns never prep anything more than 24 hours before a session. The purpose of this

Future Trends for Civil Aviation the Importance
Words: 2282 Length: 8 Document Type: Essay

Future Trends for Civil Aviation The importance of a viable civil aviation sector to national security has been well documented, but the aviation industry continues to struggle with skyrocketing fuel prices and highly regulated operational environment. In this setting, it is not surprising that some civil aircraft engine manufacturers have fallen by the wayside while others have prospered by achieving a competitive advantage of some sort. To identify what strategies

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now