so taken into consideration the potential of the Emerging markets, mainly Japan, as per their consumer income increasing and economy growing and another point is that the people in this country are open for western lifestyle, besides of differences in their culture. INDUSTRY ANALYSISThe gourmet coffee industry has exploded, with a grow rate of 30% per year for the past 3 years, as coffee bars, shops and houses have turned coffee into a trend. According to figures, there were 463 coffee outlets in the country in 1991, but by the middle of 1996, there were 5,425, which means an increase of 1,000%.Other highlights:Prevision specialty coffee to capture 30% market by 99 (approx. 5 billion)Growth of number of espresso bars and cafes to more than 10.000Expect increase in the cost of coffee beans in near future tightening margins for merchants (coffee farmers are switching to more profitable fruit and vegetables craps, reducing the world’s supply of coffee beans)COMPETITION ANALYSIS Highlights:Two Competitive Arenas: Retail Beverage and Coffee Beans SalesWhole Bean: Specialty Coffee sold at retail through Supermarkets (Kraft, Nestle, Procter & Gamble, Regional specialty coffee companies, etc), Specialty Retailers and a growing number of specialty coffee storesCompete with franchise operators and independent specialty coffee retailers (in metropolitan areas a single block may has 4 or 5 different cafs) – direct competitor: SBC, which follows Starbucks’ stepsCompete with established suppliers in its specialty sales and direct response (mail order business)Market saturated and Starbucks is in almost of them (strong presence)Competition for qualified personnel to operate retail stores – need of a good compensation policy to keep talented peop INTERNAL ANALYSISStarbucks is the largest USA coffee chain, owning more than 1,030 stores (1997 figures); through the third quarter of fiscal year 1997, it had profits of $38.65 million...
