External Analysis: Coffee and Company of Focus is Starbucks

External Analysis
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Institution
External Analysis
Industry Evolution
Starbucks Corporation, an American company established in 1971 is involved in the processing and marketing of coffee across the globe. The company has close to 200,000 employees with operations in 62 nations. The organization’s core business is roasted and handcrafted coffee although it is also involved in the sale of food products and other beverages. The industry is at a mature stage with an average level concentration (Lee, 2015).
There are various reasons why Starbucks can be said to be at a mature stage. To start with, mature organizations have tried-and-tested business approaches and have a sustainable advantage over their competitors. For Starbucks, its competitive advantage is in the form of a powerful brand ownership that is above that of its competitors. Regardless of its country of operation, Starbucks has a competitive advantage over its competitors since they do not have to do a lot of marketing like other startups (The Motley Fool, 2015).
The other thing that characterizes mature corporations such as Starbucks is its differentiation of its products. Regardless of the country where it has operations, anyone walking into a Starbucks knows what to expect since their products are already defined and no changes are introduced in the different places where the corporation operates. At the present, the company’s major area of focus is the provision of roasted and handcrafted coffee and the company has tried as much as possible to stick to this brand even when there appears to be other more lucrative businesses (Szczerba, 2014).
Another thing that characterizes mature economies such as Starbucks is its focus on stability and growth rate of its revenues instead of focusing on external growth. Even though there have been numerous opportunities for growth for the organization, the management has mostly centered its focus on growing its internal structures instead of concentrating on external growth. At the moment, the company only has operations in 62 nations and most of its focus has been geared towards getting more customers for that market instead of opening new branches in other nations (Roby, 2011).
The other thing that proves that Starbucks is a mature corporation is the fact that its growth is in tandem with the growth of the economy. Over the years, the corporation’s economy has been thriving as long as the country’s economy has been growing as long as the country’s economy is booming. In 2009, the company experienced a slow down due to the financial crisis that had engulfed the nation as well as the falling tastes among coffee consumers. In the United States, the company’s revenue fell by 6.6% to 25.9 billion. Before this decline, the company had experienced five years of consistent growth just as the country’s economy. The 2009 economic is considered to have been occasioned by the inability of most people to spend money on luxuries such as eating out. Instead, the people concentrated on buying low priced products hence keeping away from the company’s coffee which is highly priced. After the economic meltdown, the company’s revenue began to show signs of growth precis...