Competitively, Starbucks had a clear stronghold on all facets:
• Sourcing (diversified portfolio of high quality exporters/close relationships with those exporters)
• Packaging (unique vacuum sealed package, ensuring a higher degree of freshness than competition)
• Supply Chain Operations (best transportation rates in the industry/ SCO serving four business units in order to eliminate
redundancy and maximize efficiency)
• Retail Sales (primary growth vehicle/adoption of brand essence/experience by customer)
• Employees / Baristas (overall, most highly trained and knowledgeable in the industry)
• Merchandising (only carrying the highest quality coffee-making equipment and accessories)
• Disciplined Real-Estate approach (tremendous flexibility and innovative “store clustering” concept maximizing market
share in given areas and building regional reputation)
• Specialty Sales (partnerships existed with many different companies providing Starbucks with revenue growth potential
and increased name recognition)
• New Ventures (Dreyer’s Ice Cream, bottled Frappuccino product w/ Pepsi, and penetration into the grocery channel)
• Mail Order (Encore DM program boosted sales by increasing transaction size, and introducing customers to a wide range
of company products)
• Financial (Starbuck’s stock price and EPS had been rapidly increasing over the past five years)
• Marketing (brand equity primarily generated by retail business- Starbucks is not just coffee, it’s a place, an experience)
Starbucks must decide how it should leverage its core competencies against various growth opportunities:
Key consumer drivers of Starbucks success:
1) Health consciousness
2) Social experience/socializing (“The Starbucks Experience”)
3) Affordable luxuries
4) Awareness
• Introduction of Starbucks Coffee at McDonalds-
Starbucks should beware of diluting the brand... displayed 300 characters
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Competitively, Starbucks had a clear stronghold on all facets:
• Sourcing (diversified portfolio of high quality exporters/close relationships with those exporters)
• Packaging (unique vacuum sealed package, ensuring a higher degree of freshness than competition)
• Supply Chain Operations (best transportation rates in the industry/ SCO serving four business units in order to eliminate
redundancy and maximize efficiency)
• Retail Sales (primary growth vehicle/adoption of brand essence/experience by customer)
• Employees / Baristas (overall, most highly trained and knowledgeable in the industry)
• Merchandising (only carrying the highest quality coffee-making equipment and accessories)
• Disciplined Real-Estate approach (tremendous flexibility and innovative “store clustering” concept maximizing market
share in given areas and building regional reputation)
• Specialty Sales (partnerships existed with many different companies providing Starbucks with revenue growth potential
and increased name recognition)
• New Ventures (Dreyer’s Ice Cream, bottled Frappuccino product w/ Pepsi, and penetration into the grocery channel)
• Mail Order (Encore DM program boosted sales by increasing transaction size, and introducing customers to a wide range
of company products)
• Financial (Starbuck’s stock price and EPS had been rapidly increasing over the past five years)
• Marketing (brand equity primarily generated by retail business- Starbucks is not just coffee, it’s a place, an experience)
Starbucks must decide how it should leverage its core competencies against various growth opportunities:
Key consumer drivers of Starbucks success:
1) Health consciousness
2) Social experience/socializing (“The Starbucks Experience”)
3) Affordable luxuries
4) Awareness
• Introduction of Starbucks Coffee at McDonalds-
Starbucks should beware of diluting the brand... displayed 300 characters
