Strengths the Number and Location Case Study

Pages: 3 (904 words)  ·  Bibliography Sources: ≈ 6  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

SAMPLE EXCERPT . . .
Opportunities

Starbucks Global Consumer Products business unit offers substantive opportunities to increase market share, particularly in international stores. Growth in Europe has occurred at a slower pace than in the U.S. There has been less market saturation and cannibalization of stores ("Growth strategy," 2002).

Starbucks has become expert at engaging customers and developing digital voice-of-the-customer channels. As a result, Starbucks innovations emerge in a fully conditioned environment, and nearly always, flourish. If Starbucks is able to sustain this type of relationship with its consumers, additions to the product mix are likely to be well received ("Schultz return," 2008).

Starbucks is moving more assertively into the single-cup / single-serving coffee market -- a U.S.$21 billion international industry and -- at U.S.$2 million -- the fastest growing U.S. coffee category. Partnering with Green Mountain Coffee Roasters, Starbucks is introducing K-Cups of both coffee and tea which are designed to work with the Keurig style single-cup brewing systems. K-Cups distribution will include supermarkets, membership / club outlets, drug stores, specialty food and beverage stores, and even department stores (Coffee is hot," 2011).

The Keurig patent is scheduled to expire in the near future, which will open the door to a Starbucks manufactured single-cup brewing machine. The single-cup coffee is a big market in Europe, but estimates are that only about 20% of Starbucks customers in the U.S. own single-serving brewing machines (Coffee is hot," 2011).

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Starbucks' fearless willingness to compete downstream against its own in-store product is likely to promote the flexibility it takes to invent products like Via® that disrupt the industry.

Threats

Several competitors with an iconoclastic bent have challenged Starbucks core competencies. The Golden Arches were now overtly competing with artisanal coffees and desserts at its McCafe. Dunkin' Donuts beat Starbucks in a prominent coffee taste test.

Case Study on Strengths the Number and Location Assignment

Increased product development of coffee types that are distinctly different from Starbucks hand-crafted espresso-based drinks could dilute the brand (Coffee is hot," 2011).

Fluctuations in the price of commodities are a substantive factor in Starbucks operations costs, with coffee beans and dairy products leading the list. Coffee bean deals in developing countries are subject to political, economic, and geographic shocks.

References

Coffee is hot: Green Mountain goes to moon on Starbucks partnership. (2011, March 3) Forbes.com. Retrieved http://www.forbes.com/2011/03/10/starbucks-green-mountain-partner-on-kcups-marketnewsvideo.html

Mitchelli, J. (2007). The Starbucks experience: Five principles for turning ordinary into extraordinary. New York, NY: McGraw-Hill.

Mitchelli, J. (2010, May 14). The Starbucks Experience. Podbean. Retrieved http://drjosephm.podbean.com/2010/05/14/how-to-be-an-innovator/

Starbucks' growth strategy: Locations, locations, locations. (2002, September 3). Washington Post. Retrieved http://www.sptimes.com/2002/09/03/

Business/Starbucks__growth_str.shtml

Starbucks Chairman Schultz returning as CEO. (2008, January 8). [Webpage] MSN.com. Retrieved http://www.msnbc.msn.com/id/22544023/ns/business-consumer_news/t/starbucks-chairman-schultz-returning-ceo/ [END OF PREVIEW] . . . READ MORE

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