Future Looks Increasingly Bright
The premium coffee provider has been equipping itself quite well in order to fight any competitor in the market. Its strategies and product quality make it the best industry player. However, here are some additional points that will strengthen this notion.
The company plans to open 1300 new stores in the months to come, which shows the large growth prospects of the company. It plans to increase its production capacity as well as attain more efficiency. Its main area of focus has been expansion in the Asian region. This region already has a lot of thirst for the amazing coffee. Hence, expanding in this area is definitely a smart thing to do.
Even peer Dunkin Brands is planning to add a large number of stores this year. In fact, it plans to double its stores in the next two decades. Dunkin Brands has been using expansion as its key strategy for growth. With 665 new restaurants already in place, Dunkin Donuts plans to further expand its footprint with 700 to 850 new stores this year, with a special focus on Southern California.
Starbucks also plans to add Vietnam to its geographical reach. This area is of particular interest mainly because of the citizens there who are highly addicted to coffee. China and India also show great demand, and the company is planning to reach out to its customers in large numbers.
The coffee retailer is also eying other product offerings in order to diversify its portfolio. It has recently entered the tea market through its acquisition of Teavana Holdings Inc. However, it is not the first time. The company had also bought Evolution Fresh and La Boulange Bakery in order to diversify into fresh juices and bakery offerings, respectively. This will create more opportunities for the company to grow.
Conclusive Thoughts
Given the strong performance, continuous strive for customer delight, and great return to investors, Starbucks has lived up to its name of being a star performer. But an investor is more interested into the future of the company, which is even brighter for the coffee maker. The addition of new and varied products along with expansion into new geographies makes this company increasingly attractive. Moreover, the launch of the Verismo and the introduction of the ease of mobile payments is attracting customers galore. A prudent investor should never let go off this stock. Starbucks will definitely help you earn more bucks in the future.
The article Starbucks Is Steaming Hot! originally appeared on Fool.com and is written by Himanshu Poddar.
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