This document outlines Starbucks' strategy to sustain competitive advantage. It discusses defining their industry and pursuing growth through controlling vendors and partners. It also addresses managing suppliers for quality and stable supply, and competing against grocery producers and foreign rivals. The document analyzes trends in coffee consumption and demand, environmental forces impacting Starbucks, a Five Forces analysis, opportunities and threats, internal strengths and weaknesses, and recommends strategic actions around their value chain to address vulnerabilities and increase differentiation.

1. Starbucks:
Strategies to Sustain Competitive Advantage

2. Key Issues
Definition of “industry”
Coffee?
Pursuit of growth:
Control of independent vendors, partners, and
licensees
Suppliers:
Quality, stable supply
Rivals:
Grocery producers, fragmented houses, foreign

3. Outlook
Growth in consumption:
15% per year
per capita rebounding to 2-3 cups/day
Shift in demand for coffee types/channels:
Specialty coffee growing faster than basic
More being sold via specialty stores vs. grocers

4. General Environmental Forces
Social
Political
Technological
Global
Legal
Economic
NET EFFECT?

5. Five Forces
Buyers
Suppliers
Substitutes
New entrants
Rivalry
NET EFFECT?

6. External Analysis
 Opportunities:  Threats:

7. Technological Development
Human Resource Management
Firm Infrastructure
Procurement
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
&
Sales
Service
Value Chain of Firm Activities

8. Internal Analysis
 Strengths:  Weaknesses:

9. Mission and Goals
Mission/vision:
Define industry, values, customers, etc.
Overall strategic approach
Goals:
Financial
Strategic

10. Strategic Recommendations
Do XX
Value chain activity ‘a’
Value chain activity ‘b’
Result: Eliminates vulnerability to SWOT
Do YY
Value chain activity ‘a’
Value chain activity ‘c’
Result: Increases extent of experiential
differentiation, buffers against new rivals