Starbucks Corporation, founded in 1971, operates 19,767 stores worldwide with a strong focus on premium quality coffee and food. The company faces competition from giants like McDonald's and Dunkin’ Donuts, while dealing with challenges such as economic factors and changing consumer preferences. Recommendations for Starbucks include introducing innovative products, focusing on regional tastes, and expanding into emerging markets.

1.  Starbucks Corporation, an American company founded in
1971 in Seattle.
 Starbucks has about 182,000 employees across 19,767
company operated & licensed stores in 62 countries.
 Their product mix includes roasted and handcrafted high
quality/premium priced coffees, tea, a variety of fresh food
items and other beverages.
INTRODUCTION

2. MISSION STATEMENT
1990-2008
Establish Starbucks as
the premier purveyor
of the finest coffee in
the world while
maintaining our
uncompromising
principles as we
grow.
2008 ONWARDS
To inspire and nurture
the human spirit –
one person, one cup
and one
neighbourhood at a
time.

3. COMPETITORS
McDonald’s Dunkin’ Donuts Barista Caribou Coffee

4. INDUSTRY DEMAND AND DETERMINANTS
 This Industry is highly sensitive to macro-economic factors such as
household disposable income.
 Another factor is the per capita coffee consumption in different areas.
 Consumer taste and preference.

5. STARBUCK’S CORE CMPETENCE
.
.
They have an
ability to
effectively
leverage their
product
differentiation
strategies by
offering a
premium product
mix of high
quality
beverages and
snacks.
They provide
each customer a
unique
“Starbucks
experience”.
Starbucks Human
Resource has a
strong value-
based approach
for building
relationships with
their customers
The “cool” factor
appeal in their
store

6. STRENGTHS
Strong market position.
Products of high quality.
Location and store appeal.
Customer loyalty.
WEAKNESS
Expensive products.
Self cannibalization through over-
crowding.
Over dependence on US market.
OPPURTUNITY
Brand extension.
Technological advances.
Expansion into emerging markets.
THREATS
Increasing competition.
Changing customer preference.
Developed countries economy.
SWOT

7. PROBLEM DEFINITION
External environmental Economy factors.
Competition and Cause:
Fierce competition with giants like McDonald
Global recession Symptoms
Declining customer traffic
Decline in operating income from 14.3% in 2007 to 6.0% in 2008

8. “AWAY FROM THE STORE”
STARBUCKS ENDED ITS
KRAFT RELSTIONSHIP
By doing so Starbucks
got complete control
over promoting its
product
STARBUCKS
PRODUCED AN
INSTANT COFFEE
VIA- water soluble
coffee from Starbucks
accounted for
$700million in sales in
US.
SINGLE SERVED POD-
COFFEE
This single serve
coffee was liked by
customers as it was
easier and faster. It
earned a total of
$509million.

9. RECOMMENDATIONS
 Products based on regional preferences.
 More innovative products.
 They can opt for business re-engineering to reduce waste.
 They can also come up with more healthy product offering in its mix.
 They must focus on the developing countries and emerging markets.