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