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

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.

COMPETITORS

McDonald’s Dunkin’ Donuts Barista Caribou Coffee

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.

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

STRENGTHSStrong market position.Products of high quality.Location and store appeal.Customer loyalty.

WEAKNESSExpensive products.Self cannibalization through over-crowding.Over dependence on US market.

OPPURTUNITYBrand extension.Technological advances.Expansion into emerging markets.

THREATSIncreasing competition.Changing customer preference.Developed countries economy.

SWOT

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

GROWTH INNITIATIVES “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.

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.