Conducting a Marketing Analysis for Starbucks UK' Essay

Conducting a Marketing Analysis for Starbucks UK' - Essay Example The company’s management acted promptly, under the leaderships of the CEO Schultz, to resolve internal weaknesses and to adapt to the changing external market environment to ensure the survival of the organization in this industry. The survival of the company in tough market environment depends on the ability of the managers to target new market segments and redesign their products to suit the contemporary market needs. Over the past ten years, the food and beverages industry has shown an exponential growth and the same is expected in future. Currently, the food and drinks market is valued at about $35 billion and the projection shows that this is bound to rise. By the year 2020, the food and beverages industry is expected to have a total value of $60.0 billion. This growth trend of this industry can be linked with the rising demand of these products and services due to increased rise in social class and growth of population (United Kingdom Food & Drink Report, 2014). However, it is clear that the demand for food and beverages in rising in the developing markets such as India more than in settled economies such as the US. Unfortunately, the competition in the food and drinks and beverages is becoming a great threat to this business. The main competitors included McDonalds and Dunkin Donuts, Costa Coffee, Pete’s coffee and mom and pop coffee stores. Over time, the company has faced a strong competition from Costa Coffee, Nestle, Caribou Coffee Company and the Coffee Roasters. This competition has been accelerated by the poor pricing strategies that Starbuck continues to use over its history. The company’s weakness exists in its inability to effect positive price reduction strategies in markets where price is a major influence of demand (Cardenal, 2012). High prices of products have given the company a bad reputation and promises to be limiting factor in the future of this company. Another weakness