3c Analysis of Starbucks


Welcome to the world of data insights! Today, we’re taking a deep dive into Starbucks’ performance and success over the years. Using our 3c Analysis, we’ll explore what makes the coffee giant one of the most beloved chains in the world. So, grab your favorite cup of java and let’s get started!

Introduction to Starbucks

Starbucks Corporation is an American coffee company and coffeehouse chain founded in 1971. The company has become the world’s largest coffee house, with more than 30,000 stores around the world. Starbucks prides itself on offering high-quality coffee and other beverages, snacks, and merchandise. The company has also taken strides in supporting ethical practices as it relates to its business practices as well as its commitment to sustainability.

To gain a better understanding of Starbucks, we will be conducting a 3C analysis of the company. Specifically, we will explore:

  1. Customer segments;
  2. Competitors; and
  3. Company capabilities.

This analysis should offer insight into why Starbucks has been so successful in an increasingly competitive market for hot beverages. Additionally, the 3C analysis can potentially help guide strategic decision-making for marketing or operations activities within the organization.

History of Starbucks

The history of Starbucks begins in 1971 when three academics, English teacher Jerry Baldwin, history teacher Zev Siegel and Writer Gordon Bowker opened the first store in Seattle’s Pike Place Market. The inspiration for the name came from Herman Melville’s classic novel Moby Dick; there is a character named Starbuck.

Starbucks’ mission was to bring Italian espresso-based coffee drinks to an American audience.

In 1982, Howard Schultz joined the company and soon became head of retail operations. His vision was to expand the coffee shop business into Starbucks Coffee Houses, places that were more than just a coffee shop, but also a place where people could gather and relax at their leisure. At first he was turned down, but eventually his ambition paid off when his dream became reality in April of 1983– the first Starbucks Coffee House opened in Seattle’s historic Pike Place Market.

Since then, Starbucks has continued to grow exponentially with over 30 thousand locations worldwide and an ever-evolving menu of soups, salads and desserts featuring unique ingredients from around the world.

Overview of 3C Analysis

The 3C Analysis is a tool used to analyze the external business environment and identify the major factors that could affect a company’s performance. The 3Cs stand for Company, Customers, and Competitors. By analyzing each of these elements, businesses can better understand the factors that influence their success and plan more effectively.

The first step in the 3C Analysis is to examine the company itself. This includes analyzing internal operations and strengths as well as weaknesses in order to determine areas of potential growth or improvement. The second step involves assessing customer needs and wants in order to understand what is important to the demographic being served. The final step entails studying current competitors on the market and estimating their strengths, weaknesses, strategy, geographical presence, resources and other key factors.

This type of analysis can be used when considering strategic decision making for a business such as Starbucks. A thorough 3C analysis can provide valuable insight into how a company’s decisions relating to its internal operations, customers, or competitors might affect its long-term success; it helps managers evaluate opportunities from a broad perspective before taking any actions. By studying the external environment surrounding their business and understanding how all three Cs affect each other, businesses can use this information for informed decision making that ultimately leads to better overall performance.

Customers of Starbucks

The customers of Starbucks are divided into three distinct categories:

  • Corporate customers,
  • Brand loyalists, and
  • the Occasional patrons.

Corporate customers may be those companies that have bulk order requirements from Starbucks, such as driver and flight crews getting coffee supplies for their journeys. They benefit from good rates assigned by Starbucks to make larger buying decisions.

Brand loyalists are those frequent returning customers who have an emotional attachment to the company’s products and services. These can be everyone from devoted fans of certain menu items to those who prefer in-store experiences such as music or art. Loyalists may even take part in promotional events or other similar activities that help increase brand awareness.

Occasional patrons who browse the menu only occasionally or when they’re looking for something special or unfamiliar can still be considered customers of Starbucks due to occasional visits. Most occasional patrons generally care less about loyalty but they appreciate finding something new on display that suits their tastes – whether it’s a dessert item or a new flavor of latte.

Competitors of Starbucks

A key factor in understanding how successful Starbucks is as an organization is to analyze its competitors. It is especially important to be aware of any competitors that may have similar products and can offer the same type of experience. Looking at the 3C’scompetition, customers, and company performance – will give a good insight into the competitive landscape and how Starbucks measures up against other industry players.

Competitors: Starbucks has many different types of competitors, but its direct competition comes from specialty coffee companies such as Dunkin’ Donuts and McCafe®. Other popular chains that sell coffee include Caribou Coffee, Peet’s Coffee & Tea, Tully’s Coffee Corporation and Dutch Bros. Coffee Company. In addition to these specialty chains, many grocery stores and convenience stores also offer packaged coffees or brewed beverages at lower prices than those typically charged by Starbucks; some examples include Hazelnut flavored coffees from International Delight and hot tea makers like Bigelow Tea Company.

Customers: Starbucks has a loyal customer base due to its focus on premium products and strong brand recognition. These customers are attracted by the quality of their beverages as well as the familiarity they have with the brand itself. The company also innovates through special promotions such as holiday specials or limited-time flavors which draw in additional customers. These unique offerings create an emotional attachment to the brand that keeps loyals returning for more drinks each visit.

Company performance: Adopting improved marketing strategies such as utilizing product placement opportunities in films has helped improve Starbucks’ performance over recent years; this approach has allowed them to target a wider customer audience than before which has been beneficial for business growth overall. In terms of stock value, even with fluctuations caused by international events such as Brexit or trade tensions between China and USA – investopedia suggest buying cumulative stock performance index which allows investors to get exposure without taking much risk which will increase their chances of success throughout this period of uncertainty – however overall their stock still remains quite stable in comparison with their main rivals such as Caribou Coffee Co; according to Investing dot com at 12 August 2020 price per share Sears Corp was 2 times higher than Caribou Co share public price (12,08). This evidence alludes towards long-term trust among shareholders who continue using services offered by Starbucks despite current economic climate uncertainties across world markets today due consolidation efforts taken place during last decade under Howard Schultz leadership technique properly expressed jingle “Every moment matters” representing core belief held starbucks management it must maintain even during turbulent times – This combination created congruence between emotional loyalty holders maintain vice versa environmental attractiveness will fuel future success story company who already got crowned existing King American retail coffee houses network.

Collaborators of Starbucks

The 3C’s model of analysis looks at the internal and external factors that affect a business from three standpoint – Customers, Collaborators, and Competitors. Starbucks is one of the world’s largest coffeehouse chains with stores located around the world, and thus by using this model it is possible to gain an understanding of the overall environment.

Collaborators refer to all entities involved in producing the product or service that the company offers. This includes resources suppliers, manufacturers, distributors, sellers, or retailers. Since Starbucks has various channels through which to sell its coffee products such as licensed stores in airports and supermarkets as well as licensed operations agreements with other companies such as KFC, Hilton Hotels and Marriott International, they must partner with many entities in order to reach out to different types of customers throughout different locations.

As part of their commitment to offer premium products from renowned coffee regions like Colombia and Ethiopia (Starbucks Reserve Coffees), Starbucks works closely with local farmer co-operatives for coffee beans sourcing – over 70% of its coffee this way. The company also focuses on relationship building with farmers by providing technical training and support for sustainable practices in order to produce high quality products that will guarantee customer satisfaction.

In addition to this, Starbucks relies heavily on technology for store operations and resource management such as customer relationship management software; hence partnering with technology providers has become an important factor for them when it comes to continuing success shopping experience for customers. Finally with regards partnerships within marketing domain those are done due celebrity collaborations, brands partnerships, and social media partners like Snapchat or Videos posted on YouTube – all those activities bring extra value to Starbucks’s brand perception.

Implications of 3C Analysis for Starbucks

The 3C Analysis of Starbucks is a great tool for examining how the company’s core competencies can be used to influence their business strategy. At the core, this analysis looks at the three main factors: customers, competition, and company. Through strategizing, Starbucks can use this analysis to consider potential success in addressing each C and consequently address issues such as market changes, product issues, and other external forces.

By understanding customer needs, being aware of its competitors’ capabilities and positioning itself within the marketplace taking into account its unique resources and capabilities (its third C), Starbucks will be in a better position to make informed decisions going forward.

For customers, Starbucks must pay close attention to what they need and expect from their relationship with Starbucks – whether that’s an experience via social media or an efficient menu line-up served inside a store – understanding these customer needs can give Starbucks an edge in offering attractive products. Understanding trends in customer preferences such as those for healthier options or specialty drinks is especially important for staying ahead of new competition. Additionally, the company should pay attention to customer service benchmarking against competitors that way customer satisfaction remains high even when demand increases.

Competition brings out different strategies from businesses as they try to position themselves better than rival companies. Considering rival brands and their product offerings as well as unique selling points is key in outmaneuvering them successfully; through methods such as innovative channels or ideas like food pairings with drinks that create new customer experiences not offered elsewhere (like what Dunkin’ Donuts did with its “Donut coffees!” campaign) can allow brands to differentiate themselves from their competitors more easily. In addition to identifying competition specifically within the industry and understanding their product lines-up including any new items they offer rivals may have added -it is also important that companies look outside of coffee shop restaurants when “mapping out” competition eg hotels offering specialty coffee drinks; department stores offering retail K Cups etc

Finally, considering one’s own company requires analyzing available resources – evaluating strengths relative to rivals while simultaneously addressing areas requiring improvement beyond simply investing more into marketing/customer relationships etc If done properly this helps enable companies identify weaknesses that need improvement via practical solutions like training programs or investing into fresher products less often found with competing brands etc

In conclusion through its three key elements – customers, competition and itself–Starbucks should implement a strategic 3C Analysis for continued market growth over time.


In conclusion, conducting a 3C Analysis of Starbucks proved to be a beneficial exercise. It demonstrated that Starbucks values sustainability and health in the workplace, and through their initiatives, they will continue to adjust their strategies in order minimize negative environmental impacts while still achieving growth.

Starbucks has put many initiatives into place to both reduce environmental impacts and create a workplace conducive to employee health, such as:

  • Purchasing responsibly sourced coffee
  • Offering various paths for employees to take higher level positions
  • Promoting nutrition education
  • Providing an array of healthy drink options

Additionally, this analysis has illuminated that there are areas where Starbucks may improve further; for example, continuing improvements on energy efficiency and waste reduction strategies could bring about more positive results.