Business Operation Model Analysis and optimization Path Research of Coffee Industry in China--Taking Starbucks and Rising as examples

Abstract

Starbucks has been up against intense competition in the coffee business ever since Luckin Coffee, a quickly expanding coffee chain throughout China, entered the market. Luckin has quickly overtaken Starbucks, a premium brand in China, as a bargain competitor thanks to its speedy online ordering capabilities, prompt delivery, and readiness to offer discounts when shopping. Starbucks possesses, however, delicate decorated offline chain stores, which give customers a so-called loving and warming “third place” to work or study and offers many customized options to make clients’ favorite drinks. These components in Starbucks are something that Luckin cannot give to the crowd. People’s demands have been changing rapidly, so these companies need new strategies to adapt these adjustments to occupy a larger market share. This paper analyzes the business operation models and compares financial statements where necessary of these two companies to find the most optimum market strategies in the coffee industry, especially in China.