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Starbucks

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by

Anna Grace Papey

on 24 June 2014

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Transcript of Starbucks

Threat of Substitutes:
High
tea, fruit juices, water, soda’s, energy drinks
home produced coffee
Bargaining Power of Buyers:
Moderate to Low Pressure
no single buyer can demand price concession.
vertically differentiated products
moderate sensitivity in premium coffee of consumers
SWOT Analysis
President and CEO:
Howard Schultz
Date established:
March 30, 1971,
Place:
Seattle, Washington
Mission:
to inspire and nurture the
human spirit – one person, one cup
and one neighborhood at a time.

Starbucks
The Logo
Table of Contents
I. Introduction
II. Environmental Analysis
- Porter's Five Forces
- SWOT Analysis
III. Strategic
Recommendations
Threat of New Entrants:
Moderate
Bargaining Power of Suppliers:
Low to Moderate Pressure
Intensity of Competitive Rivalry:
High to Moderate
Porter's Five Forces
Weaknesses:
Opportunities:
-Expansion into Emerging Markets

-Expanding Product mix and offerings

-Expansion of retail operations

-Technological advances



-New distribution channels

-Brand extension
Threats:
-Increased Competition

-Price Volatility
in the Global
Coffee Market


-Developed Countries Market Saturation
-Developed Countries Economy
-Changing Consumer tastes and lifestyle choices
-Consumers do have any cost of switching to other competitors
-differentiation of premium products and service
-mature industry and growth rate has been moderately low
-forms a highly important part of the suppliers business
-supplier pose a low threat of competing against Starbucks
Penetrate the emerging markets:
Brazil, India, China, South Africa and Mexico



Strengthen core competencies and capabilities
from country to country

Take advantage of the
growth opportunity of
their Tea and Fresh
Juice products mix
Modify its menu
and expand to give
more healthy product
offerings in its mix.

Implement an effective hedging
strategy so that the future costs can
be managed to a greater extent.


Focus on getting
additional
penetration into
untapped rural
markets in the US.
Build
better
relationships
with retailers
to increase the
efficiency of this distribution channel.

Make significant investments in advertising and marketing initiatives

Further build and retain
customer loyalty by
having home delivery.

Strengthening their mobile app.
Loyalty points integration
is also recommended.
Strategy
Recommendations
Financial Performance
Thank you for listening.
S
W
O
T
-Anna Grace Papey
-Rosabelle Mendez
-Marie Jan Go
-Rizelle Arjane Cacho
-Goodwill among
consumers due to
Social Responsibly
Initiatives

-Diverse Product Mix

-Customer base loyalty




-Use of Technology
and Mobile Outlets
STRENGTHS
-Strong Market Position
and Global Brand
Recognition


-Products of the Highest
Quality
-Location and Aesthetic
appeal of its Stores
-Human Resource
Management
-Expensive Products

-Self-Cannibalization through overcrowding
-Over dependence in the United States market




-Negative large corporation image
-American/European
coffee culture clash
with that of other
countries
IN 2013...
Full transcript