Starbucks Strategies to Sustain Competitive Advantage Key Issues
Starbucks: Strategies to Sustain Competitive Advantage
Key Issues o Definition of “industry” o. Coffee? o Pursuit of growth: o. Control of independent vendors, partners, and licensees o Suppliers: o. Quality, stable supply o Rivals: o. Grocery producers, fragmented houses, foreign
Outlook o Growth in consumption: o 15% per year oper capita rebounding to 2 -3 cups/day o Shift in demand for coffee types/channels: o. Specialty coffee growing faster than basic o. More being sold via specialty stores vs. grocers
General Environmental Forces o Social o Political o Technological o Global o Legal o Economic o NET EFFECT?
Five Forces o Buyers o Suppliers o Substitutes o New entrants o Rivalry o NET EFFECT?
External Analysis o Opportunities: o Threats:
Value Chain of Firm Activities Firm Infrastructure Human Resource Management M A R Technological Development Service Marketing & Sales Outbound Logistics Operations Inbound Logistics Procurement G IN
Internal Analysis o Strengths: o Weaknesses:
Mission and Goals o Mission/vision: o. Define industry, values, customers, etc. o. Overall strategic approach o Goals: o. Financial o. Strategic
Strategic Recommendations o Do XX o. Value chain activity ‘a’ o. Value chain activity ‘b’ o. Result: Eliminates vulnerability to SWOT o Do YY o. Value chain activity ‘a’ o. Value chain activity ‘c’ o. Result: Increases extent of experiential differentiation, buffers against new rivals
- Slides: 10