This document is a case analysis of Starbucks by a group of 5 students. It summarizes that Starbucks started in 1971 in Seattle, pioneering the coffee culture in America. It now has nearly 18,000 retail stores globally. The document outlines Starbucks' mission to inspire people through coffee. It analyzes Starbucks' internal environment using the VRIO framework and notes strengths in human resource management and marketing. Externally, it mentions risks from the 2008 financial crisis and competition. The document also summarizes Starbucks' current strategies like horizontal integration and future strategies like co-branding and market penetration with adaptation.

1. Group 3
Suraj Bansal (12304)
Ujjwal Chand (12310)
Monika Maheshwari (12319)
Ashish Naulakha (12320)
Smriti Sharma (12329)
Strategic Management
Case Analysis : Starbucks
Date: 7th April 2013

2. Brief Introduction
2
 Started in 1971in Seattle’s Pike Place Market
 First Company to innovate idea of coffee culture in
America
 Nearly 18000 retail stores in 60 countries
 Products: Coffee, Handcrafted Beverages, Merchandise,
Fresh Food
 Rated as the 11th best place to work in the United States
by Fortune Magazine in 2005

3. Mission
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 Mission: To inspire and nurture the human spirit- one
person, one cup and one neighborhood at a time
 Principle:
 Our Coffee
 Our Partners
 Our Customers
 Our Stores
 Our Neighborhood
 Our Shareholders

4. Value Proposition
 “Live coffee” mantra
 Components in this branding strategy:
 Coffee itself
 Customer intimacy: Service
 Ambience
 Channel of distribution
 Starbucks partners- its 60,000 employees

5. Internal Environment Analysis
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 VRIO Framework
VRIO
Framework
Valuable Rare Difficult
to Imitate
Organizatio
n
Strength/
Weaknes
s
Competitiv
e
Implication
s
Firm
Infrastructure
Yes No No Yes S Temporary
Advantage
HRM Yes Yes Yes Yes S Sustainable
Advantage
Procurement Yes Y/N Y/N Yes S Temporary
Advantage
Marketing Yes Yes Yes Yes S Sustainable
Advantage
Sales/ Retail Yes No Yes Yes S Sustainable

6. External Environment
Analysis6
 International scenario: Country Risk, Political Risk
 2008 financial crisis: Changing customer preference
 Competitors: Dunkin Donuts and McDonalds

7. Current Strategy
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 Horizontal Integration
 Market Penetration
 Market Development
 Concentric Diversification
 Conglomerate Diversification
 Value Chain Development

8. Future Strategy
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 Co-branding
 Market penetration with adaptation
 PEST analysis
 Competitive analysis

9. Thank You
9