Assessing the situation at Starbucks and recommending future strategies.

1. Group 3
Suraj Bansal (12304)
Ujjwal Chand (12310)
Monika Maheshwari (12319)
Ashish Naulakha (12320)
Smriti Sharma (12329)
Strategic Management
Case Analysis : Starbucks
Date: 7th April 2013

2. Brief Introduction
2
 Started in 1971in Seattle’s Pike Place Market
 First Company to innovate idea of coffee culture in
America
 Nearly 18000 retail stores in 60 countries
 Products: Coffee, Handcrafted Beverages, Merchandise,
Fresh Food
 Rated as the 11th best place to work in the United States
by Fortune Magazine in 2005

3. Mission
3
 Mission: To inspire and nurture the human spirit- one
person, one cup and one neighborhood at a time
 Principle:
 Our Coffee
 Our Partners
 Our Customers
 Our Stores
 Our Neighborhood
 Our Shareholders

4. Value Proposition
 “Live coffee” mantra
 Components in this branding strategy:
 Coffee itself
 Customer intimacy: Service
 Ambience
 Channel of distribution
 Starbucks partners- its 60,000 employees

5. Internal Environment Analysis
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 VRIO Framework
VRIO
Framework
Valuable Rare Difficult
to Imitate
Organizatio
n
Strength/
Weaknes
s
Competitiv
e
Implication
s
Firm
Infrastructure
Yes No No Yes S Temporary
Advantage
HRM Yes Yes Yes Yes S Sustainable
Advantage
Procurement Yes Y/N Y/N Yes S Temporary
Advantage
Marketing Yes Yes Yes Yes S Sustainable
Advantage
Sales/ Retail Yes No Yes Yes S Sustainable

6. External Environment
Analysis6
 International scenario: Country Risk, Political Risk
 2008 financial crisis: Changing customer preference
 Competitors: Dunkin Donuts and McDonalds

7. Current Strategy
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 Horizontal Integration
 Market Penetration
 Market Development
 Concentric Diversification
 Conglomerate Diversification
 Value Chain Development

8. Future Strategy
8
 Co-branding
 Market penetration with adaptation
 PEST analysis
 Competitive analysis

9. Thank You
9