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Illycaffe

Illycaffe. VS. Starbucks. Friends. or competitors？. Our tasks ：.

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Illycaffe

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  1. Illycaffe VS Starbucks Friends or competitors？

  2. Our tasks： Given Illycaffe’s move into the United States coffee market, management as well as consumers may question Illy’s positioning versus Starbucks coffee. Although Illycaffe entered the U.S. market mainly through B2B ventures while Starbucks dominates the retail market, both coffee companies are bound to clash at some point through exploring each other’s business segments.

  3. Our Questions 1）What are Starbucks CSAs and FSAs? How do these advantages explain the chain’s success in the United States? 2）How internationally mobile is the Starbucks concept? Any barriers to entry? 3）Franchising would seem a natural entry mode for Starbucks, but the chain sometimes owns the shops even abroad. What could be the explanation? 4）you were Andrea Illy, what strategic plan would you develop?

  4. Introduction about Illycaffe

  5. Illy is annoyed when companies like Starbucks call their drinks espresso, latte, or hybrid Italian names like frappuccino, and refer to their employees as baristas. But the business of coffee has fundamentally changed, on both sides of the Atlantic, and it is companies like Starbucks that have changed it.

  6. Illycaffe have five kind of caffe bars: • 1. In downtown meeting place ——core bar. •2. In a commercial center or cultural center——landscape bar. •3. In airports and railway stations——transit bar. •4. Located outside the city center——community bar. •5. In the hotel lobby or a small business center——corner bar.

  7. What are Starbucks CSAs and FSAs? How do these advantages explain the chain’s success in the United States?

  8. FSAs: Firm Specific Advantages 1. Starbucks is a very profitable Corporation, earning in excess of $600 million annually, although the sales figure decreased recently. It has almost 9000 cafes in almost 40 countries and is planning to open more than 700 new ones this year. 2. It is a global coffee brand built upon a reputation for products and services of hith quality. 3. The cooperate principle of Starbucks is the ‘Return of Happiness’, which means only to the employees’ happiness, which leads to the happiness of the customers, can the company run a happy business. Hense, the company offer favourable welfare benefits and staff are valued. 4. Starbucks has strong ethical values and contribute to some ethical mission to the society.

  9. CSAs Country Specific Advantages Now Starbucks are breaking into Asian’s market and the followings are some CSAs of Starbucks especially on Asian’s market. 1. Compared to the European market with a long-history tradition and more districts, Starbucks have gained more apllause in Asian ares, because its fashionanl icon. 2. Starbucks carry out some innovative rules to cater to the local meets of the Asian markets’ customers. For example, Starbucks mooncakes have been produced. After brought in to the Taiwan’s market, Starbucks mooncakes became hot sales and new booking were ordered very popularly. Because of the success, Starbucks is planning to lauch more new products including mooncakes and other traditional snack of special taste, high materials, and with fashional package, as the first choice to the festival present in local areas. 3. Starbucks is trying its utmost to build the most classic atmospheres and offer the high class services to customers.

  10. 2）How internationally mobile is the Starbucks concept? Any barriers to entry?

  11. ►Funded in 1971 with the opening of the 1st location in Seattle’sPike Place Market selling coffee beans only. ► Howard Schultz joined Starbucks in 1982 sa director of retail operarions and marketing. ► Schultz purchased the company in 1987 and Starbucks Coffee Company opened the first store to sell brew coffee and espresso beverages. ► Completed IPO on NASDAQ in 1992 under the trading symbol “SBUX”,thus opening a new chapter of growth for the company. ► Currently operating in 39 countries around the world with more than 13000 stores and over 145000 partners. Starbucks’ global facts & figures

  12. Starbucks’ business structure I’m Starbucks CEO~ Starbucks have three kind of business structure in the global: self-owned, joint ventures,licensing agreements. What’s more, Franchising would seem a natural entry mode for Starbucks, but the chain sometimes owns the shops even abroad. For example, in china, Since the beginning of China's new to the market, so when Starbucks entered the Chinese to prepare, they chose the means of franchising.

  13. Franchising would seem a natural entry mode for Starbucks, but the chain sometimes owns the shops even abroad. What could be the explanation?

  14. How to do? • In order to understand why Starbucks is so successful, we have to perform internal and external analysises of the corporation. • Although the growth on the coffee market has been slowdown, competition is still tremendous, and new firms are trying to enter the low barrier market constantly . The corporation is affected by political, economic, social and technogical factors within its marcoenvironment and the competition that already exists,the power of buyers andsuppliers play a major role in the business’ market growth. • In order for the company to maintain the competitive edge, it has to remain the innovative skills and continue offering new differentiated products, investing in its partners and in its ethical values towards the environment.

  15. Imagine you were Andrea Illy, what strategic plan would you develop?

  16. If I were Andrea Illy, I would set up a branch which is mainly responsible for selling our company’s products and services in the U.S., enabling it to supervise the distribution of their firm’s goods and have easy access to the exporter’s staff to place orders or seek help and advice. It can also recruit some local staff who are very familiar with the local condition. On the one hand, it will be propitious to close the culture distance. On the other hand, it will be in favor of understanding the local tastes and market needs, making the export coffee more suitable for the local people and offering better services. Illycaffe entered the U.S. market mainly through B2B and Starbucks dominates the retail market of the U.S., so I thinked we could cooperate with Starbucks. As Starbucks and us both are with stong background, cooperation will conquer the disadvantages of two parties and come into a win-win end.This would let Illycaffe syncretize in the U.S. more quickly and better.

  17. Our team: 06级 国际经济与贸易（3）班 钟颖珊 3206004442 （Question 1） 杨双双 3206004441 （Question 2） 肖晓伟 3206004440 （Question 3） 伍玉灯 3206004439 （Question 4）

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