MBA FPX 5008 Assessment 3 Applying Analytic Techniques to Business MBA-FPX5008 Applied Business Analytics Starbucks Corporation: A Deep Dive into the Coffee Giant’s Market Dominance and Growth Strategies

Starbucks Corporation stands as the unrivaled leader in the global specialty coffee industry. With nearly 30,000 locations worldwide, the company has seen impressive financial success, reporting record net revenues of $24.7 billion in 2018. In the United States, specialty coffee consumption has surged, with gourmet coffee holding a 60/40 advantage over traditional coffee types. The U.S. coffee market, valued at $48 billion, sees specialty coffee contributing 55% of the market share. Projections suggest the industry could grow 5.5% annually, potentially reaching $75 billion in revenue over the next five years.

Strategic Acquisitions Fuel Starbucks’ Expansion

While Starbucks’ core focus has always been coffee, the company has diversified through strategic acquisitions such as Teavana, Bay Breads, and Evolution Fresh Juices. These brands have enabled Starbucks to expand its product offerings and maintain a competitive edge. Unlike traditional franchise models, Starbucks operates through company-owned stores and joint ventures in international markets. In 2017, 79% of Starbucks’ revenue came from its company-operated stores, while licensed stores, which make up the majority of locations, contributed only 11% of the total revenue.

Global Expansion: Starbucks’ Growth in Developed and Emerging Markets

Starbucks has successfully expanded its operations across 78 countries, with the U.S. and China being the largest markets. In 2018, the U.S. market saw a 7% growth, while China experienced a 6% increase. The company’s international expansion strategy includes opening 500 new stores in China by the end of 2019, reinforcing its commitment to capturing market share in high-growth regions.

Analyzing Starbucks’ Stock Performance: A Data-Driven Approach

Graphical Data Analysis of Starbucks’ Stock Volumes and Prices

Figure 1 showcases the trading volume of Starbucks stock from September 17, 2018, to September 13, 2019. The histogram indicates that most of the trading volume falls between 7.1 million and 14.3 million shares, with occasional spikes suggesting higher market activity. The data’s right-skewed nature implies that high-volume trades, although infrequent, significantly influence the average volume, indicating volatility.

Figure 2 depicts the adjusted daily closing prices of Starbucks stock for the same period. The graph shows a slightly skewed distribution to the right, with the mean price at $73.72, slightly higher than the median price of $70.88. This trend suggests that a few higher closing prices are driving the average upward, reflecting positive investor sentiment and rising market confidence in Starbucks.

Scatterplots Highlighting the Highs and Lows of Starbucks’ Stock Prices

Figures 3 and 4 illustrate the highest and lowest stock prices of Starbucks, respectively, over the analyzed period. The scatterplots reveal a steady upward trend in both high and low prices, with significant growth observed throughout the year. However, a slight decline at the end of the period could be attributed to external factors such as market sentiment and broader economic influences.

Statistical Insights: Mean, Median, and Standard Deviation of Starbucks Stock Data

The average adjusted closing price for Starbucks from September 2018