Starbucks - Strateic Knowledge Management


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Starbucks - Strateic Knowledge Management

  1. 1. Starbucks Presented by: STRATEGIC KNOWLEDGE MANAGEMENT 1 MSK 7223 Mahayar--------------------------1092300037 Sanaz Ahmadpoor Samani-----1092300032 Mohammed Yunesi -------------1092300122 Imran Saif ----------------------- 1082300031 Marwan Noman ---------------- 1092300108 Abdusamad Ahmed-------------1092300043
  2. 2. <ul><li>Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide. </li></ul><ul><li>It offers : </li></ul><ul><li>brewed coffees </li></ul><ul><li>Italian-style espresso beverages </li></ul><ul><li>cold blended beverages </li></ul><ul><li>selection of premium teas </li></ul><ul><li>ready-to-drink beverages, </li></ul>Starbucks
  3. 3. <ul><li>Starbucks is the largest coffeehouse company in the world. There are more than 13,100 Starbucks stores in the world, spanning 40 countries. </li></ul><ul><li>The higher prices are a direct result of their ingenious marketing strategy. </li></ul><ul><li>Starbucks can be found in many popular grocery chains in the us and Canada as well as In many air ports big shopping mall metro station and street in all of the world. </li></ul>Starbucks profile
  4. 4. <ul><li>In 1971 Starbucks began when three friends-English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker opened a store called Starbucks Coffee, Tea, and Spice in the touristy Pikes Place Market in Seattle .’ </li></ul><ul><li>The company also has a partnership with the Tazo Tea Company. Starbucks has a loyal coffee and tea drinker fan base. </li></ul><ul><li>The higher prices are a direct result of their ingenious marketing strategy. </li></ul><ul><li>Starbucks is the largest coffeehouse company in the world. There are more than 13,100 Starbucks stores in the world, spanning 40 countries. </li></ul>Starbucks history
  5. 5. <ul><li>establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. </li></ul><ul><li>started providing a great work environment . </li></ul><ul><li>holding the diversity as an essential business. </li></ul><ul><li>Purchasing and roasting were applied in the highest standards. </li></ul><ul><li>make sure their customers are satisfied. </li></ul>Mission of Starbucks
  6. 6. <ul><li>become a national company with values and guiding principles that employees could be proud of. </li></ul><ul><li>The vision focuses on the way people should be treated. </li></ul><ul><li>This begins with staff members and ends with a satisfied customer. </li></ul><ul><li>Starbucks can modify its vision statement by including that the company will set the taste standard </li></ul>Vision of Starbucks
  7. 7. Marketing strategies
  8. 8. Starbucks Operations <ul><ul><li>The most recognized and respected brand in the world. </li></ul></ul>
  9. 9. Starbucks Financial Report
  10. 10. Main Aspects of Porter’s Five Forces Analysis <ul><li>Michael Porter, author of Competitive Strategy, uses a five forces model to analyze an industrial environment and to develop an optimum strategy for success within a given industry based upon specified parameters. The five variables responsible for the forces analyzed using this model are the industry suppliers, buyers, potential new entrants, substitute products and the competition among existing firms. </li></ul>
  11. 11. The rivalry between existing seller in the market <ul><li>In the specialty eateries industry the main competitors for current Starbucks in US are Diedrich Coffee, Seattle's Best Coffee, and Einstein/Noah Bagel Corporation. In the industry the main competitors for Starbucks are Gloria Jean’s 249 retail stores owns by the Canadian franchiser , Florida-based coffee chain Brother’s gourmet 250 franchises in the Chicago area. And third one and also strong one is The last strong competitor is Seattle’s Best Coffee. </li></ul>
  12. 12. Bargaining Power of Buyers: <ul><li>Another threat to Starbucks is that their customers have the ability to brew their own coffee and this is a threat for Starbucks . </li></ul>
  13. 13. Bargaining Power of Suppliers : <ul><li>The quality of coffee sought by Starbucks is very high. </li></ul><ul><li>In 2001, Starbucks announced new coffee purchasing guidelines for control the power of supplier. </li></ul><ul><li>These guidelines are based on the following four criteria: Quality baselines, social conditions, environmental concerns, and economic issues. </li></ul>
  14. 14. Threat of potential Entrants: <ul><li>Starbucks, being the world leader in its industry, has controlled access to distribution channels. Starbucks is constantly innovating and showing strong product differentiation in their industry that is one of Starbucks’ success key. </li></ul>
  15. 15. Threat of Substitute Products:   <ul><li>The best way to evaluate this threat is to ask whether other industries can satisfy the customer need that this industry is satisfying. This is why image is very important for Starbucks, as well as the company's ability to innovate and differentiate. </li></ul>
  16. 16. SWOT Analysis <ul><li>External Environment </li></ul><ul><li>Internal Environment </li></ul>
  17. 17. External Factor Analysis Summary
  18. 18. Internal Factor Analysis Summary
  19. 19. Strategic Factor Analysis Summary
  20. 20. TOWS Matrix
  21. 21. Starbucks strategy is fairly simple: increase the perception of high quality of a commodity product, adapt stores to the consumers’ lifestyle, and covers its existence areas completely. Starbucks demonstrated in the past its strength and ability to sustain growth even during recession, and while analysts believe that Starbucks growth will slow down with regard to its past, but the company still growing. Starbucks continues to keep its customers happy and rely on non-traditional means of attracting new customers; that is the Starbucks strategy. Conclusion
  22. 22. Recommendation 1 - Starbucks should continue to open new locations worldwide. 2 - Increase the advertising from 1% to 10% at least. 3 - Reduce the perception of there is no competition out. 4 - Extend its menu selection to include drinks related to particular cultures. 5- Increase selection for Children’s Drinks.