What does this mean? (Starbucks)?

Question

Im doing a paper on Starbucks, and it states to discuss the market in which it operates?

What does that mean???

Is it saying to write about what they market or about the market itself?

Answer 1

My take on this would be Starbucks, very famous and profitable upscale coffee shop market, sometimes linked with Barnes & Noble book stores, but not always, they have other storefronts. (in malls, etc. too.)

Answer 2

The market itself - the market would be their competitors - other coffee specialist, convenience stores like Wa-Wa and 7-11, etc.  You will need to discuss growth outlooks, saturation points, profit margins, outside factors such as the price of coffee and oil (transportation), etc.

Start by going to the library and getting hold of a Standard and Poore's industry analysis (you may have to search for something close to coffee merchandiser).