Starbucks Corporation faces increased competition in the coffee market from fast food players like Dunkin Donuts, McDonald's, and international coffee chains. Symptoms include a reduction in Starbucks' operating profit and losses through operated retail stores in the US. The main problem is the impact of the economic downturn on revenues and the price war with competitors. Starbucks took actions like adding new products, closing underperforming stores in the US, and reinvigorating their brand experience. Further actions could include offering better prices than competitors and targeting the organic coffee market.

1. STARBUCK CORPORATION
Presented to:
Prof. Jayant Bose Presented by:
Anuj Kumar Bajpai
Deepak Kumar
Deepak Kumar Choudhary
Karan Goyal
Dushyant Singh

2. What is the case about?
 Competition in Coffee market
 Starbuck downfall
 Starbuck expansion strategy

3. Who are the players in the case?
-High risk of New
Entrants
-Fast food players
Coffee Dunkin
Growers- Donuts, Caribov International
Market for coffee, Peet’s customers
organic coffee ad ,Local
coffee, Need tea, KKD, MC Customers:
of better Donald:High Wide choices
quality Competition,Price Better price
coffee,Enviro war options
nment
friendly
Coffee
Tea/other
drinks

4. What is the event?
 Price war between Starbuck and MC
Donald
 Starbuck needs effective strategy
To retain their customers
Save its market share

5. Symptoms
 Increase in revenues but reduction in
operating profit
 Loss through operated retail stores in
US
 Moody’s investor services
downgraded starbuck credit rating

6. Problem
 Impact of economy downfall on
revenues and operating income
 Price war with competitors
 Deteriorating condition of US operated
retail stores

7. Issues
 Offering by the other competitors at
low cost
 Losing Market share

8. Action taken
 Star buck added many new product in its
portfolio like:
◦ Bottled frappuccino beverages
◦ Espresso drinks
◦ chilled cup coffee
◦ super premium coffee.
 They closed 425 stores in united states but
they opened 60 new stores internationally
 Reinvigorate “the starbuck experience”
 Restructuring in US

9. Action to be taken
 Offer better price to customers than competitors
 Add new features and better quality than competitors
 They should make a competitive strategy for their
products as compare to there competitors.
 Market research or feedback to know the satisfaction
level of their customer through the questionnaire at each
store.
 Target organic coffee market also

10. Thank You!