Situation Analysis Assignment: StarbucksStarbucks Corporation is the world's leading retailer of specialty coffee beverages and related confectionery items. Starbucks was founded in 1971 in Seattle by Jerry Baldwin, Zev Siegal and Gordon Bowker. Starbucks currently has over 21,000 stores and operates in more than 63 countries. The company's mission is to offer people the opportunity to enjoy a good cup of coffee and engage in good conversation. The following situational analysis provides a detailed look at Starbucks' current business situation by providing an in-depth analysis of the company's current product, market, opportunities, and challenges. Current Products Starbucks' product portfolio falls into four major Starbucks has an established and standard brand that allows its products to command premium market prices. However, this came at a price for the company. Starbucks has several competitors including: McDonald, Caribou Coffee, Dunkin Donuts, Costa, Coffee Nero, among other companies. There are also countless small coffee retailers that Starbucks competes with. Although these companies sell a similar product which is coffee, there is a lot of product differentiation in the market. Every company is different in terms of what they offer their customers. Starbucks specializes in specialty coffees and sells its products at high market prices compared to other retailers in the market. Competition can be fierce and Starbucks has been a victim of the rivalry that exists in the industry. For example, while Harrison & Hoole successfully entered the market with the support of Tesco, Starbucks exited the Australian market after failing to gain much market share (Latif et al., 2014). Current Customers fall into three categories, including: children and adolescents, young adults and adults. Starbucks stores are located in the most visible locations possible and centralized in urban cities that serve as regional centers. The adult customer group, made up of men and women between the ages of 25 and 40, represents Starbuck's primary market segment and accounts for 50% of total sales. This group of customers has a professional career, relatively high income and prefers urban lifestyle. Starbucks offers special products and spaces where this group of customers can socialize and spend time with their friends and family. Adult customers mostly prefer coffee and other caffeinated drinks, while younger customers prefer caffeine-free drinks and sweets. The young adult group, made up of customers between the ages of 18 and 24, represents 40% of Starbucks' total sales. Starbucks offers attractive retail stores and cafes where young adults can meet people, spend time with friends, and complete tasks. Additionally, retail stores have Wi-Fi access and good music to attract and retain young people. These customer groups are also attracted by customer service and highly knowledgeable employees who educate customers about Starbucks products (Latif et al..,