The document analyzes different business segments of Starbucks using GE matrices: - Starbucks coffee is in the "grow and build" quadrant due to its strong competitive strength and the high attractiveness of the brewed coffee industry. The strategy is to expand market penetration in markets like China and India and develop new products. - K-cup coffee has average-weak competitive strength and medium-high industry attractiveness, placing it in the "selective investment" quadrant. The strategy focuses on product development and related diversification. - Starbucks Europe has weak competitive strength and medium industry attractiveness, placing it in the "divest/retrench" quadrant. The strategy is to close stores in major cities and move to

1. Starbucks SBU analysis
using GE matrix
Prabodh Tuladhar

2. Grow and
build
Grow and
build
Selective
investment
Grow and
build
Selective
investment Harvest
Selective
investment Harvest Harvest
Strong Average Weak
High
Medium
Low
Competitive Strength
IndustryAttractiveness
Grow and build
Selective
Investment
Harvest

3. Protect
position
Invest to
build
Build
selectively
Build
selectively
Manage for
earnings
Expand or
harvest
Protect
position &
refocus
Manage for
earnings
Divest
Strong Average Weak
High
Medium
Low
Competitive Strength
IndustryAttractiveness
Grow and build
Selective
Investment
Harvest

4. Diversified portfolios of Starbucks
Starbucks Coffee: brewed coffee Teavana : loose-leaf tea Tazo: herbal and premium tea
Evolution Fresh: fruit juice
and blends
Hear Music: record label Ethos Water: bottled water

5. Diversified portfolios of Starbucks
• Starbucks coffee: brewed coffee
• Teavana : brewed and packaged loose-leaf tea
• Tazo: herbal tea and premium packaged tea (sold to Unilever in 2017)
• Evolution Fresh: fruit juices, fruit juice blends
• Hear music: record label
• Ethos water: bottled water

6. Starbucks brewed coffee
• grow and build (high attractiveness and long term market and and
strong competitive strength)
• Strategy grow and build
• Market dev. and penetration: eg: markets in china and India
• Develop new products eg: herbal tea, premium tea

7. Starbucks brewed coffee
Matrix position
high attractiveness and long term market and
strong competitive strength
so position is grow and build
Strategy for grow and build
Market dev. and penetration: eg: markets in
china and India
Develop new products eg: herbal tea,
premium tea

8. Grow and
build
Grow and
build
Selective
investment
Grow and
build
Selective
investment Harvest
Selective
investment Harvest Harvest
Strong Average Weak
High
Medium
Low
Competitive Strength
IndustryAttractiveness
Grow and build
Selective
Investment
Harvest

9. Starbucks k cup machine
Matrix position
Single serve cup of coffee
avg to weak strength as dominated by green
mountain with many competitors
biggest player: green mountain coffee
attractiveness: medium to high. product may be
mature as it has existed for a long time
So position is selective investment
Strategy for selective
investment
product development
related diversification
starbucks has developed its own hardware for
this. takes only starbucks pods

10. Grow and
build
Grow and
build
Selective
investment
Grow and
build
Selective
investment Harvest
Selective
investment Harvest Harvest
Strong Average Weak
High
Medium
Low
Competitive Strength
IndustryAttractiveness
Grow and build
Selective
Investment
Harvest

11. Starbucks Europe
same store sales declining. lot of
players; varied types of demand
weak competitive strength since
Starbucks is new player
industry attractiveness is
medium. industry far more
mature in Europe.
Strategy
Divest
Retrench
Turnaround: close
stores in major cities.
move to places where
there is more foot
traffic.

12. Grow and
build
Grow and
build
Selective
investment
Grow and
build
Selective
investment Harvest
Selective
investment Harvest Harvest
Strong Average Weak
High
Medium
Low
Competitive Strength
IndustryAttractiveness
Grow and build
Selective
Investment
Harvest

13. Overall position of Starbucks