Starbucks was established in 1971 in Seattle, Washington and has since expanded globally. It now has over 21,000 stores across 65 countries. Starbucks core competencies that fueled its rapid global growth between 1992-1997 include high quality coffee, accessible store locations, and affordable prices. However, competitors entering the market forced Starbucks to close 900 stores and eliminate 34,000 jobs. Starbucks has since diversified its product line and launched mobile apps to drive new revenue streams. The case study analyzes Starbucks' expansion and competitive strategies using tools like the Boston Matrix and SWOT analysis.

1. Internal Assessment
Case study on
“Starbucks”
Presented By: Hafiz Azeem Ud Din Shaikh
MBAE- 1535107

2. Company Background
• Established in 1971 in Seattle
Washington USA.
• Integration in Product Line.
Coffee on United Airlines flights
Online franchise.
Bean and ground coffee to supermarkets
Coffee ice cream
Selling CDs in Starbucks retail stores

3. Sketch of the Study
• Global Expensions of the Brand.
First International Outlet in Italy.
• Rapid Grwth Era (1992- 1997)
16,706 stores in 50 countries (Dec’ 2009)
• Core Competency…
High quality coffee
Accessible locations
Affordable prices

4. Strike by Compettiors !!
• New Growth Strategy
more revenue with lower costs
closed 900 stores
eliminated 34,000 jobs
• Strategy, focus on low risk areas.
Foreign stores as a joint venture
(share risk and costs)

5. Cont..
• Retail Outlets.
Approx. 131% increase (2003-2008)
Approx. 47.31% increase (2009-2014)
• Horizontal Diversification
Cups, Chocolates, blender and etc..
• Starbucks Mobile Applications
App for Android
App for iphone

6. I & E Assessments
• Boston Matrix.(External)
• Porter’s Generic Competitive
strategy (External)
• SWOT Analysis (Internal & External)
Internal Factor Analysis Summary (IFAS)
External Factor Analysis Summary (EFAS)

8. Grounds of the Factors
• Brand Identity
Coffee… what brand ??
• Quality
Zagat’s (“burgundy bible”)online
survey’ June 8, 2009
6,100 participants
Dunkin’ Donuts, McDonald’s Peet’s
Coffee & Tea &The Coffee Bean & Tea
Leaf
250,000 cups of coffee yearly
Survey

9. Cont..
• Variety
French Roast
Italian Roast
House Blend
Breakfast Blend
Espresso Roast Espresso Verismo Pods
Starbucks- Ready Brew Italian Roast
Fontana™ White Chocolate Sauce
 Ready Brew Colombia
• Locations
21,366 stores in more than 65
Countries

10. Cont..
• Convenience
Online stores
Android & iphone apps.
• Store Ambience
• Ethics
Zagat’s Survey

11. Weaknesses
• Overexposure
More retails (physical) outlets will cost
more!!
• Too many products..
Diversified products line
• Risky investment..
Risky to invest in U.S
12802 -56.2%

12. Thank You

14. Apps for Android

15. App for iphone

16. Store Ambience
Store Ambience

17. Number of Outlets