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Starbucks Strategies - A Brief Overview
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Starbucks Strategies - A Brief Overview

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Starbucks Strategies - A Brief Overview Starbucks Strategies - A Brief Overview Presentation Transcript

  • 1
    Never be without great coffee
  • 1
  • Changing Strategy at Starbucks
    By Group 7:
    Akhil Bheda GMAY08IB085
    BandhanKabli GMAY08IB090
    Himanshu Vyas GMAY08BM066
    Kunal Sidhwani GMAY08BM069
    Swati Sharma GMAY08IT051
    Uphar Gandhi GMAY08WM151
  • The Article
    “The coffee consumption landscape is ripe for disruption”
    Howard Shultz, CEO, Starbucks
  • Starbucks – The History
    Opened by 3 partners in 1971 in Seattle, US
    Inspired by Alfred Peet who ran high quality coffee beans and equipment company called Peet’s
    The original store is still open
    In 1984 bought Peet’s
    In 1987 sold the chain to Schultz’s II Giornale which rebranded the chain as Starbucks
    Came with an IPO in 1992
    Current CEO Howard Schultz
  • Starbucks – Over the years
    Largest coffee house company in the world
    Based at Seattle, USA
    Owns more than 16000 stores in 48 countries
    Operates through company owned retail stores
    Sells drip brewed coffee, espresso based hot drinks, other hot and cold drinks, snacks and other items like mugs.
    Starbucks Entertainment division and Hear Music
    Starbucks mission
  • Reflecting the old strategy
  • Old Strategy
    Expand aggressively
    Opened almost 1 store each working day in the last 2 decades
    Associated itself as a premium brand
    Focused on high end, upper middle class customer
    Promoted itself as a status symbol
    Sold only pricy lattes and other “affordable luxuries”
    Moved into selling some premium brands like Frappuccino
  • Reverberating a Change
  • Changing Strategy
    Comments from the current CEO – “This is a big move for us – an opportunity to reinvent a category, create new rituals and grow our customer base.”
    Closure of cafes from low revenue markets
    Retrenchment
    Focus on new customer prices
    Product Development – Via instant coffee, bundled products
    Lowered the price of the products
    Concentric diversification into new markets
  • Actions taken in 2008
    A plan to close approximately 600 underperforming stores in the US market, of which 205 were closed as of fiscal year-end
    Restructuring the Australia business by closing 61 stores and focusing on 23 stored in 3 metros
    Rationalize infrastructure usage
    Introduce new beverage platforms like breakfast food offerings, bakery and chilled foods, and a new everyday brewed coffee
  • Bibliography
    http://finance.yahoo.com/news/Starbucks-unveils-Via-instant-rb-14378742.html
    http://www.courier-journal.com/article/20090301/BUSINESS/903010318
    http://www.starbucks.com/aboutus/overview.asp
    http://en.wikipedia.org/wiki/Starbucks
    http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article5755178.ece
    http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article5755669.ece
  • Thank You!!