External Environment Analysis

External Environment Analysis (STEEPLE)

Social- As coffee is now more accept by public, for a well-known chain coffee shop like starbuck, it is more chance to expanse and develop their business

Technology- Technology development can help Starbuck on Improve cooperate operation , and also improve their R &D

Economic- Most Starbuck shop is open in a urban jungle, high inflation will have huge impact on consumer money spending power as coffee is not necessaries, and also increase their cost in labor, rent and material.

Environment - Most Coffee Exporting Region is in developing countries, they're now more concern on pollution which might have impact on Starbuck Operation, besides, in some market, they will need to obtain planting permission to brewing plant, most of the market in become more hard obtain a permission, which will have huge impact on Starbuck operation.

Political- political stability is very important to influence on Starbuck operation like Brazil will have huge import on Starbuck operation if their farmer can able to concentrate on producing coffee beam.

Legal- As many on Starbuck store is open in a large cities which most of them will have a healthily and safety along trade restriction will have legal aspects on Starbuck operation.

Internal Environment Analysis

Entry Barrier - As producing profession coffee will need a professional labor and machine and raw material which is very high cost, so entry barrier is high on Profession Coffee chain Store.

Bargaining Power of Customer- there are only few Professional coffee chain store in the market, so customer don't have much alternative choice if they want a professional coffee.

Bargaining Power of Supplier- Even there is only few large coffee beam supplier, their bargaining power should be high, but profession coffee maker is more rare, so Supplier bargaining power is low for Starbuck, and we can said supplier need Starbuck more than Starbuck need them

Substitute - There are many substitute drink like water, coke, juice, and people are now more concerning about healthy life, so the Substitute power is high.

Competitive Rivalry- threat posed by the competitors is actually high as there is many large chain restaurant want to entry in this market like Pacific Coffee and Mc Café, all these restaurant have high competitive and usually compete in prices war as well as the quality of product.