Starbucks India or it can be called as Tatabucks. As Starbucks Corporation and Tata Global Beverages announced 50:50 joint venture called Tata Starbucks Ltd. in January 2012 which operate and own outlets branded Starbucks “A Tata Alliance”. An agreement was also signed between Starbucks and Tata coffee that coffee would 100% locally sourced and roasted
Report done by David Mc Guinness, Selim Öztürk and Zhifeng Qi. Master in Business Strategy.
The main purpose of this report is to analyze Starbucks’ strategy, inquiring the coffee industry, competitors, International expansion, resources and capabilities.
Starbucks has evolved from a mere seller of coffee products to a full-fledged chain “restaurant”, offering not only coffee products but also other beverages, foods, and merchandise.
Starbucks is still a global leader in the coffee shop chain business
Introduced an online app making it more convenient for customers to locate stores and place orders
Starbucks slogan of “Uniquely Starbucks” continues to play a huge role in company’s success
Report done by David Mc Guinness, Selim Öztürk and Zhifeng Qi. Master in Business Strategy.
The main purpose of this report is to analyze Starbucks’ strategy, inquiring the coffee industry, competitors, International expansion, resources and capabilities.
Starbucks has evolved from a mere seller of coffee products to a full-fledged chain “restaurant”, offering not only coffee products but also other beverages, foods, and merchandise.
Starbucks is still a global leader in the coffee shop chain business
Introduced an online app making it more convenient for customers to locate stores and place orders
Starbucks slogan of “Uniquely Starbucks” continues to play a huge role in company’s success
Starbucks India Communication Strategy- Has the details of the starbucks market worldwide and in India as of Dec 2014, the story of starbucks, the product price map, the product adoption life cycle, a swot analysis for starbucks , the positioning of starbucks , the value chain of starbucks, competitors of starbucks and the future aspects of starbucks in india
The ppt descibes the the Branding and marketing strategies of Starbucks Under 8 functional Bracket like Logo, Standardisation, expansion, Globalisation, Co-branding, Augmented Services, Facing Competition and Pricing Strategies.
STARBUCKS: DELIVERING CUSTOMER EXPERIENCE.
This report consists of various analysis frameworks / models used to analyse the customer experience at Starbucks.
An interesting analysis of Starbucks's SWOT, 4Ps, Strategy, Marketing, Finance etc. Hope you will enjoy this presentation. Go through the slides and don't forget to hit like and share buttons. All the best.
by Patrícia Azevedo (Brazil) and Kyle Tsung (Taiwan)
August 2009 - UC Irvine - Grade: A+
This is my final project for ESL Marketing Program, at University of California Irvine. Our goal was present marketing concepts throught a real American Brand in a creative presentation.
Starbucks India Communication Strategy- Has the details of the starbucks market worldwide and in India as of Dec 2014, the story of starbucks, the product price map, the product adoption life cycle, a swot analysis for starbucks , the positioning of starbucks , the value chain of starbucks, competitors of starbucks and the future aspects of starbucks in india
The ppt descibes the the Branding and marketing strategies of Starbucks Under 8 functional Bracket like Logo, Standardisation, expansion, Globalisation, Co-branding, Augmented Services, Facing Competition and Pricing Strategies.
STARBUCKS: DELIVERING CUSTOMER EXPERIENCE.
This report consists of various analysis frameworks / models used to analyse the customer experience at Starbucks.
An interesting analysis of Starbucks's SWOT, 4Ps, Strategy, Marketing, Finance etc. Hope you will enjoy this presentation. Go through the slides and don't forget to hit like and share buttons. All the best.
by Patrícia Azevedo (Brazil) and Kyle Tsung (Taiwan)
August 2009 - UC Irvine - Grade: A+
This is my final project for ESL Marketing Program, at University of California Irvine. Our goal was present marketing concepts throught a real American Brand in a creative presentation.
Which are the opportunities and threats in Starbucks external environment?
Which are the strategic capabilities, which Starbucks could leverage to enter the tea market?
This slide is the solution to the Starbucks Case. The case is available in Google Docs. the solutions are well discussed , in case you have doubts check in the footnotes.
External and Internal Analysis 8Extern.docxgitagrimston
External and Internal Analysis 8
External and Internal Environmental Analysis
STR/581
Professor Alfonso Rodriguez
July 30, 2014
Sheila Medina
Introduction
Coffee has become an integral part of the lives of numerous people. In 1971, Starbucks coffee opened its first coffee shop in the Pike Place Market in Seattle, Washington. Now, according to research “Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 6,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim” (www.investor.starbucks.com). Starbucks aims to be the consumer’s favorite coffee shop and to achieve this the company focused on customer satisfaction as well as company advancement. Therefore, it is important to act based on what is written in Starbucks mission, value and vision statement, “To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (www.starbucks.com).
A review of Starbucks financial reports has identified an increase in revenue over the past few years. However, this increase in revenue doesn’t account for the increase in profits. The profit increase is not as high as it could be due to external factors such as other coffee shops and the increase in amount of competition. This report aims to identify the different internal and external environment factors attributing to the changes in Starbucks external environment by utilizing several different analyses.
SWOT Analysis
Strengths
Starbucks possesses several main strengths including their high visibility being located in high traffic areas, quality of service and products and their established brand loyalty. Starbucks remains an established leader being the number one known coffee house in the world while possessing a competent workforce, providing quality service, and continuing financial soundness. They also are known for their strong internal and external relationships with their suppliers.
Weakness
Weaknesses that Starbucks must address include: Product affordability and pricing, coffee beans price is the major influence over the firms profits, maintaining the positive public opinion of their products, avoiding any negative publicity, and remaining connected to their customers. Starbucks must also consider the fact they have expanded domestically and internationally resulting in saturation of the markets. They are also a non-smoking facility alienating some customers from purchasing coffee or other products from their store.
Opportunities
Opportunities include the ability for Starbucks to enter into different and new markets,
partnership opportunities with businesses, growing acceptance and customer satisfaction, and increase different product offerings. Starbucks must strive to continue expanding their products and food service to remain competitive and reach other consumers. Another option would be for Starbucks to allow consumers to order t ...
Presentation on a case study (Starbucks In 2012: Evolving Into A Dynamic Global Organization)
#presentation #starbucks #powerpoint #casestudy #slide #strategicmanagement #businessstrategy
WTO & Trade Issues - Legal and Ethical Issues in International Marketing.pptxDiksha Vashisht
Making the leap into overseas marketing involves more than just identifying a new market and going after it. The process requires plenty of foresight and local knowledge if the pitfalls of legal and cultural issues are to be avoided. Linguistic and cultural differences, shifting political systems, and governmental protections for home-grown brands will all have to be planned for and dealt with first.
WTO & Trade Issues - International Trade Environment.pptxDiksha Vashisht
To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade.
The main historical theories are called classical and are from the perspective of a country, or country-based.
WTO & Trade Issues - International Promotional Strategies.pptxDiksha Vashisht
Communication is the basis of promotional activities. Companies attempt to convey product information to potential customers. Promotion involves marketing efforts that inform, remind and persuade customers. Product or service promotion is carried through communication and certain tools are adopted for this:
Advertising: The advertising is any paid form of non-personal presentation and promotion of goods and services by the identified sponsor in the exchange of a fee
WTO & Trade Issues - International Product Policy.pptxDiksha Vashisht
International product life cycle discusses the consumption pattern of the product in many countries. This concept explains that the products pass through several stages of the product life cycle.
The, product is innovated in country, usually a developed country, to satisfy the needs of the consumers.
The innovator country wants to exploit the technological breakthrough and start marketing the products in foreign country.
WTO & Trade Issues - International Pricing.pptxDiksha Vashisht
The price of the product for domestic and export purposes shall be calculated in somewhat different manner. There are various methods of pricing the product in international market. Exporter may follow any method to calculate price. But before that he must be able to identify competitor’s price.
WTO & Trade Issues - International Marketing Introduction.pptxDiksha Vashisht
International Marketing is the application of marketing principles by industries in one or more than one country
International marketing is based on an extension of a company’s local marketing strategy, with special attention paid to marketing identification, targeting, and decisions internationally
WTO & Trade Issues - International Marketing Environment.pptxDiksha Vashisht
International Marketing environment refers to the controllable and uncontrollable forces that influence upon the marketing decision making of a firm globally. International Marketing environment is comprised of those components which shape policies, programmes and strategies of an international marketer.
WTO & Trade Issues - International Financial Institutions.pptxDiksha Vashisht
The International Monetary Fund (IMF) is an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty. Quotas of member countries are a key determinant of the voting power in IMF decisions.
Votes comprise one vote per 100,000 special drawing right (SDR) of quota plus basic votes. SDRS are an international type of monetary reserve currency created by the IMF as a supplement to the existing money reserves of member countries.
Foreign Trade Policy is a set of guidelines and instructions established by the DGFT in matters related to the import and export of goods in India. The Government of India, Ministry of Commerce and Industry announces Export Import Policy every five years.
Exporting marketing is the practice by which a company sells products or services to a foreign country. Products are produced or distributed from the company's home country to buyers in international locations. Hereby a company markets the products/services in international locations
Consumer Behavior is the study of individuals, groups, or organizations and all the activities associated with the purchase, use & disposal of goods & services & how the consumer’s emotions, attitudes & preferences affect buying behavior.
Retailer’s Classification on the basics of Operational Structure.pptxDiksha Vashisht
Store Based: Store based formats can be further classified into two formats based on the basis of Ownership or Merchandise offered. Non Store Based Classification: Non Store retail organizations focus on establishing direct contact with the consumer.
A retail outlet or store is a retail sales establishment which has a genuine retail activity and which therefore has a sales area. This therefore excludes ancillary establishments such as warehouses or the offices of commercial enterprises without their own turnover..
A service blueprint is a diagram that visualizes the relationships between different service components — people, props (physical or digital evidence), and processes — that are directly tied to touchpoints in a specific customer journey. Think of service blueprints as a part two to customer journey maps.
Since 1890, Dressed in white outfit and traditional Gandhi Cap, Mumbai Army of 5,000 Dabbawalas fulfilling the hunger of almost 200,000 Mumbaikar with .
Globalization has given impetus of international trade which is increasing by the day. International trade involves multiple agencies, transportation agents, carriers as well as Customs and Banks etc of the two countries involved in trade.
Export and Import transactions are essentially dependant upon documentation and information to flow across all related agencies smoothly.
International Trade Logistics - Type of Duties.pptxDiksha Vashisht
Internationally, all import and export shipments originating or entering in a country are regulated through the customs laws and regulations of respective country. In India, all import and export shipments are cleared through various customs check points as per provisions contained in the Indian Customs Act (ICA) 1962.
International Trade Logistics - Documentation.pptxDiksha Vashisht
Documents are at the heart of all logistics processes. Invoices, bills of lading, shipping slips, customs documents, and packing lists are just a few of the (typically) paper documents that are passed through many hands from supplier to receiver to end customer
The trading of one currency for another or system of converting one national currency into another (Rupee for Dollar)
An exchange rate is the price of a currency (value of one currency relative to the other)
It is essential for the trading between nations
For Example: how many Indian rupees does it take to buy one US dollar?
If the exchange rate is 71, it means Rs. 71 are needed to buy 1 USD
First Things First: Building and Effective Marketing Strategy
Too many companies (and marketers) jump straight into activation planning without formalizing a marketing strategy. It may seem tedious, but analyzing the mindset of your targeted audiences and identifying the messaging points most likely to resonate with them is time well spent. That process is also a great opportunity for marketers to collaborate with sales leaders and account managers on a galvanized go-to-market approach. I’ll walk you through the methods and tools we use with our clients to ensure campaign success.
Key Takeaways:
-Recognize the critical role of strategy in marketing
-Learn our approach for building an actionable, effective marketing strategy
-Receive templates and guides for developing a marketing strategy
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
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With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
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Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
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Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
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Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
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Applications of 3D and AR in Digital Commerce,
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Tools to create, manage and publish 3D and AR in Digital Commerce.
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STARBUCKS STRATEGIC MANAGEMENT.pptx
1.
2. Introduction
Starbucks India or it can be called asTatabucks. As
Starbucks Corporation andTata Global Beverages
announced 50:50 joint venture calledTata Starbucks
Ltd. in January 2012 which operate and own outlets
branded Starbucks “ATata Alliance”. An agreement
was also signed between Starbucks andTata coffee
that coffee would 100% locally sourced and roasted.
3. VISSION
• Starbucks vision statement is “To establish Starbucks as the
premier purveyor of the finest coffee in the world while
maintaining our uncompromising principles while we
grow.”
• Starbucks mission statement is “To inspire and nurture the
human spirit – one person, one cup and one neighborhood
at a time.”
MISSION
4. • Starbucks is building one of the powerful brand in2 decades.
• They started expanding their business globally .
• Currently operating in over 64 countries &23000 stores
• It uses aggressive marketing technique so that they can become the
threat for higher & lower entrant into the market.
• they also try to reach out in Indian market with merging tata global
beverages.
What is the case about?
5. Who are the actors & players?
NEW ENTRANTS:
Brand Awareness,
product differentiation
BUYERS:
Large variety of
products
SUBSTITUTES:
Tea , juice ,soft drink ,
kfc , mc Donald's
SUPPLIERS
RIVALRY:
CCD, BARISTA ,
COSTA COFFEE
6.
7. Threats from new entrants: According to the current market environment, it is difficult for a
new firm to enter in the market with large investment. However, retail market is highly
competitive sector and investors will not appreciate a new company to invest for them due
to global financial crisis. Aronin, Fetterman & Liu (2004) stated that the entry barriers for
selling specialty coffee in rural regions are relatively low, as it opens outlets in places with no
close competition;
Bargaining power of the suppliers:The major suppliers of Starbucks are coffee beans
suppliers, machinery, and other raw material suppliers.The supply of various food
ingredients, for example, green coffee beans are being produced all over the world, but the
price of coffee beans is subject to significant instability. According to the annual report 2009
of Starbucks, this bargaining power of the suppliers depends on several factors like
producing areas, bad weather, and the actions of certain organizations, political situation,
and financial circumstances.
Bargaining power of the buyers: The buyers have a moderate level of bargaining power
though quality, quick services, and other supportive factors like lower price and tastes of
unique brand items influence the purchaser.
Threats of substitute products:The threat of substitute products of Coffee is reducing, but
most challenging substitute products for Starbucks are Pepsi, Coca-Cola and other energy
drinks;
Rivalry among existing competitors: The competition is extremely high, and Starbucks
faces competition from restaurants and other specialty Coffee brands, retailers. However,
McDonald, KFC, Dunn Brothers Franchise are the nearest competitors of the company
8. • IN 2006 Starbuck looking for venture partner to India.
• It filed an application with FIPB
• FIPB rejected the application.
• Revised application to enter through franchise.
• In 2012 ,50:50 joint venture with tata global beverage.
• Set up there first stores in Mumbai in2012
What is the event?
9. Symptoms:
• Starbucks very well accepted in the premium segment but found too
costly by popular segment.
Problems
• Risk of substitute products and development of other new products;
• High operating costs is one of major challenges for the company;
• it becomes difficult to ensure a consistent supply of high quality raw
materials due to follow growth expansion strategy;
• Impersonator brands that pose potential threats.
What are the symptoms, problems, &
issues?
10. • The major challenge that Starbucks is dealing with is the current
financial crisis in the world economy forcing them to call closures of
many stores around the world. Another challenge that Starbucks is
dealing with is competitors
Issues:
• The case is primarily designed to help students understand the idea
of market mix and how to achieve competitive advantage.
• It is meant to help identify the challenges faced by Tata Starbucks
and to explore the strategies which Tata Starbucks might adopt to
overcome these challenges..
• Should they continue to remain as a niche player in the premium
segment?
• Could they start a subsidiary to reach out across town classes.
11. • Starbucks applied the niche marketing strategy for high urban cities.
• Starbucks needed to maintain their quality & its flexibility.
• Product innovation & new-growth platforms.
• Expanding the international & operating segment
• Expand in Chinese market.
• Global consumers product group
What have been actions taken?
What actions need to be taken?
12. •What in your opinion are the
uncontrollable factors affecting mobile
phone industry in India?
13. Tata Starbucks Pestle Analysis
Political Factors
• The Economy in India is more stable in terms of government and political issues as
compared to other countries. That creates a good working environment for companies
like Starbucks.
• Starbucks needs to vary about the possible opposition from existing competitors
(CCD, Barista, Costa Coffee etc.) through the use of political influence and delaying
tactics.
• As we all know that Indian market is huge enough that can accommodate more
players in Indian Coffee Industry.
14. Economical Factors
• The majority of India’s population is dependent on agriculture
and mostly are in rural areas.
• However, over the last 10 years the culture in India has changed
and it has been shifted to industrial and service sectors with
nearly 83% of the GDP arising out of these two sectors.
• The trend is likely to continue and this makes India a safe
investment proposition ,especially for the companies like
Starbucks
15. Social Factors
• Changes in social trends can impact on the demand of Starbucks
products and the availability and willingness of individuals to work
• India has a population of more than 1.2 billion people with about
70% between the ages of 15 and 65. The young population always
wants to taste international brands.
Technological Factors
• Technological factors always influences product development and
also introduces cost-cutting processes. Indian coffee has been
improving in quality continuously and almost 80 % of India’s coffee
is exported.
• Indian coffee growers are seriously working at improving the
standards to meet the international coffee standards.
16. Legal Factors
• Legal factors can affect a firm's costs and demand. The Indian
judicial system remains largely free from the political interference
and pressures. It can help international brands to easily enter in
India.
Environmental Factors
• Environmental factors include the weather and climate change.
Changes in temperature can impact on many industries. It can also
affect Tata coffee which is supplying coffee to Starbucks in India.
17. •What strategic choices does STARBUCKS have
under the circumstances defined above? You
may use applications of SWOT Matrix to
generate the options available to STARFBUCKS
18. •Brand image
•Premium quality
•Excellent customer service
•Known for ethical business
•well managed supply chain
•High priced products
•Imitation by others
•Expansion in the emerging
markets
•Diversification of the product
mix
•Cobranding or partnership
with other brands
•Heavy competition from the rival
brands
•Consumer trends
•Imitation of its premium products
19. • – Strengths:
• Brand image
• Premium quality
• Excellent customer service
• Known for ethical business
• well managed supply chain
Starbucks has become a well-known brand with its more than 22000
stores in various corners of the world. It has become the best
coffeemaker by focusing on the quality of its products. Its products are
of premium quality. Apart from it, Starbucks is known for excellent
customer service. The staff at Starbucks is customer friendly. It does
everything to make the customers feel at home. Starbucks also strives to
provide the customers with a friendly and homely environment. Ethical
business is another area that has given Starbucks a special image. From
sourcing of raw materials to sales and marketing, it strives to
follow ethical practices in all its business areas. Apart from that a key
strength of Starbucks is its well managed supply chain.
20. •– Weaknesses:
• High priced products
• Imitation by others
The high price of Starbucks products is a major weakness of the
brand. While its products are premium in quality, they are higher priced
than most competitors. This is an important factor since Starbucks
loses a large number of customers for its high prices. The products it
sells are also imitated easily by the competitors who sell them at lower
prices. These are the two major weaknesses of Starbucks. Only if
Starbucks could bring the prices of its products lower, it could attract
customers in larger numbers. Its quality rich coffee and excellent
service come at a price that is not affordable for all.
21. •– Opportunities:
• Expansion in the emerging markets
• Diversification of the product mix
• Cobranding or partnership with other brands
Starbucks has a significant opportunity before it in the form of the
large and untapped emerging markets. Markets like India and China
can prove important sources of customers and revenue. However,
Starbucks should also try to align its products as per the cultural
standards of these markets. Diversifying its product line can also
help the brand grow and improve its brand value. Currently, the
brand is mainly known for its premium quality coffee. It can add
other products including beverages and snacks to its product line to
provide its customers with variety. Its assortment of products is
limited.
22. • – Threats:
• Heavy competition from the rival brands
• Consumer trends
• Imitation of its premium products
The Starbucks brand is facing heavy competition from its rivals.
Particularly, it is the smaller competitors whose products are
available at much lower prices that pose a major threat. The lower
end consumers are attracted towards the rivals for the lower costs of
their products. The changing consumer trends have also affected its
business to a small extent. The people are looking for healthier
products. The sales of juices and other healthy drinks has gone up.
While Coffee is not considered an unhealthy drink, still its sales are
slightly affected. Another major threat comes from the imitation of
the products. Starbucks sells premium quality products. However,
they are not inimitable. The rival brands make the same products
available at lower costs. It increases the competitive threat for
Starbucks.
23. RECOMMENDATIONS:
• Starbucks should focus on improving its brand awareness. In this regard,
it can form strategic partnership with the other brands. However, it can
also tap into a larger customer base by lowering the prices of its products
or by making lower priced product variants available throughout its
stores. Its premium image also hurts its sales. Currently, it has a major
opportunity in the emerging Asian markets which are largely untapped. It
can expand its brand to these parts to generate higher revenue.
Simultaneously, it can benefit by expanding its product line and including
new snacks and beverages.
24. EFE MODEL
S.
No.
FACTORS WEIGHT RATING TOTAL
SCORE
1.
2.
3.
OPPORTUNITIES
Expansion in the emerging
markets
Diversification of the product
mix
Cobranding or partnership with
other brands
0.20
0.10
0.10
3.0
3.5
2.5
0.30
0.35
0.45
1.
2.
3.
THREATS
Heavy competition from the rival
brands
Consumer trends
Imitation of its premium
products
0.20
0.20
0.20
2.5
2.5
2.0
0.35
0.25
0.30
2.10
25. IFE MODEL
S.
No.
FACTORS WEIGHT RATING TOTAL SCORE
1.
2.
3.
4.
5.
Strengths:
Brand image
Premium quality
Excellent customer service
Known for ethical business
Well managed supply chain
0.01
0.30
0.20
0.09
0.20
4
3
4
3
2
0.15
0.6
0.4
0.2
0.09
1.
2.
Weaknesses:
High priced products
Imitation by others
TOTAL
0.10
0.10
1.00
3
2
0.3
0.2
1.63
26. BALANCED SCORE CARD
AREA OF OBJECTIVES MEASURE OF TARGET
TIME
EXPECTATION
PRIMARY RESPONSIBILITY
CUSTOMERS
1. SATISFACTION
2. BRAND IDENTIFY
1) 85% SATISFACTION RATE THROUGH
CUSTOMER
2) INDUSTRY REPORTS RANK
STARBUCKS IN TOP 100
YEARLY
EVALUATION
Arthur Rubin Feld (GLOBAL
DEVELOPMENT)
EMPLOYEES
1. QUALITY & SERVICES
TRAINING
2. EMPLOYEE
SATISFACTION
1) TWO MANDATORY CLASSES PER
YEAR.
2) 90% SATISFACTION RATE THROUGH
EMPLOYEE SURVEYS
YEARLY
EVALUATION
Troy Alstead (CHIEF FINANCIAL
& ADMINISTRATIVE OFFICER)
MARKETING/PUBLIC IMAGE
1. POSITIVE PUBLIC IMAGE 1) MAINTAIN POSITION AS AMERICA’S
GREENEST CORPORATION
YEARLY
EVALUATION
Annie Young Scrivener (CHIEF
MARKETING DIRECTOR)
BUSINESS ETHICS/NATURAL
ENVIRONMENT
1. WATER USE REVENUE
2. RATIO ANALYSIS
1) DECREASE WATER CONSUMPTION BY
15%
2) TWO MANDATORY WORKSHOPS
YEARLY
EVALUATION
Howard Schultz (PRESIDENT &
CEO)
FIANANCIAL 1) YEAR 1: 15%; YEAR 2&3: 20% PER YEARLY Troy Alstead (CHIEF FINANCIAL
27. Internal factors
External factors
STRENGHT(S)
S1:Profitability
S2:Brand recognition
S3:Global presence
Weakness(W)
W1: Uneven worldwide
distribution
W2: Product pricing
W3:Sustainability
Opportunities(O)
• O1:New markets
• O2:New products & services
• O3:Purchasing companies
S-O Strategies
• SO.1. Re-invest profits in
new markets
• SO.2. Use its brand to sell
new products
• SO.3.Expand global presence
by purchasing companies.
W-O Strategies
• WO.1.New market will
balance distribution
• WO.2.Lower prices for new
products
• WO.3.Purshases companies
to survive.
Threats(T)
• T1:New entrants
• T2: U.S. market saturation
• T3:Change in customer favor
S-T Strategies
• ST.1.Offer better stakeholder
value
• ST.2.Ensure a strong
foundation
• ST.3.Introduce to more
people worldwide.
W-T Strategies
• WT.1.Entry into new
countries before
competition.
• WT.2.Lower prices in Asia
• WT.3.Engage the customer
with constant rewards
TWOS MATRIX
28. SPACE MATRIX
QUADRANT 2 QUADRANT 1
Market Development
Market Penetration
Product Development
Horizontal Integration
Divestiture
Liquidation
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
QUADRANT 3 QUADRANT 4
Retrenchment
Related Diversification
Unrelated Diversification
Divestiture
Liquidation
Related Diversification
Unrelated Diversification
Joint Ventures
Rapid Market
Growth
Strong
Competitive
Position
Slow Market
Growth
Weak
Competitive
Position
29. BCG MATRIX
International Brand
Joint Venture with TATA Alliance
STAR
Newly entered in India
QUESTIONMARK?
Customer loyalty
Brand Loyalty
COW
Less stores are currently present.
Huge number of competitors
DOG
HIGH
LOW
MARKET
GROWTH
RATE
RELATIVE MARKET SHARE
HIGH LOW