Starbuck in Saudi Arabia

STARBUCKS

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

Group Member

S.MOHSIN HASSAN NAQVIJIBRAN KHALIL

RAHEELFARAZ

I. HISTORY OF STARBUCKS II. STARBUCKS CUSTOMERSIII. STARBUCKS IN THE WORLDIV. SWOT ANALYSISV. STARBUCKS IN SAUDI ARABIAVI. PROBLEMS OF DOING BUSINESS IN SAUDI

ARABIA.VII.CONCLUSION

AGENDA

SEATTLE, 1971 - FIRST STARBUCKS

2011 - STARBUCKS NEW LOGO

STARBUCKS TODAY

15.000+ STORES

50 COUNTRIES

1st ROASTER AND RETAILER

18-45 year oldsYoungsters who want to gather with their friendsOffice workers and students who need to catch up

with their workPeople who are adventurous, willing to try new things

TARGET

Egypt

South Africa

STARBUCKS IN AFRICA

2 / 52 - (4%)

EAST ASIA• China• Hong Kong• Macau• Japan• South Korea• Taiwan

SOUTH EAST ASIA• Indonesia• Malaysia• Philippines• Singapore• Thailand

STARBUCKS IN ASIA

NORTHEN ASIA• Russia

WESTERN ASIA• Armenia• Barhain• Cyprus• Jordan• Lebanon• Kuwait• Oman• Quatar• Saudi Arabia• Turkey• United Arab Emirates23 / 44 - (52%)

NORTH AMERICA (100%)• Canada• USA• Mexico• Puerto Rico

CENTRAL AMERICA (3/52 - 14%)• Aruba• Bahamas• El Salvador

• SOUTH AMERICA (4/10 - 40%)• Argentina• Brazil• Chile• Peru

STARBUCKS IN THE AMERICAS

• Austria

• Belgium

• Bulgaria

• Czech Republic

• Denmark

• France

• Germany

• Greece

• Hungary

STARBUCKS IN THE EUROPE

• Ireland

• Netherlands

• Poland

• Portugal

• Romania

• Spain

• Sweden

• Switzerland

• UK

18 / 37 – (49%)

Australia

New Zealand

STARBUCKS IN OCEANIA

2 / 9 – (22%)

AN ADAPTATION STRATEGY

Adapting their products

•Different muffin flavors, different cheesecakes

Product diversificationEstablished logo, developed brand, copyrights,

trademarks, website and patentsCompany operated retail storesInternational presenceValued and motivated employees, good working

environment

STRENGHTS (1/2)

STRENGHTS (2/2)

Good relationships with suppliers

Industry market leaderCustomer loyaltyWide spread and consistentKnowledge basedStrong BoardTrendy brand imageStrong financial foundation

Weakness & Opportunities

Weakness:

•Over Exposure

•Many ProductsOpportunities•Customization

•International Market

•On the go life style

Competition (restaurants, street carts, supermarkets, other coffee shops, other caffeine based products)

Market saturationCoffee price volatility in developing countriesNegative publicity from poorly treated farmers in

supplying countries

THREATS (1/2)

THREATS (2/2)

Consumer trends toward more healthy ways and away from sweet coffee beverages and cakes

Cultural and Political issues in foreign countries

PROMOTION: COMMITMENT TO THE WORLD

Environmental impact

Creating “Grounds for your Garden” 

Using recycled materials: ranked 15 on the U.S. Environmental Protection Agency’s list of Top 25 Green Power Partners 

PROMOTION: COMMITMENT TO THE WORLD

Fair tradeLargest buyer of Certified Fair Trade coffee in North

America (10% of the global market)Payes above market prices for all of its coffeeOpens farmer support centers in Africa

PROMOTION: COMMITMENT TO THE WORLD

Product (red)Raise awareness and funds to help eliminate AIDS in

Africa.Starbucks’ Red products and Red card:

STARBUCKS IN SAUDI ARABIA

Starbucks enter in Saudi Arabia market

Problems of doing business in Saudi Arabia.

The Israeli ConflictSaudi govt laws and people own value system. LogoMale –female interactionBack drop cross culture wealth uncertainty Strict religious conviction Lack of modern reality

STARBUCKS TODAY

THANK YOU