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Starbucks: Strategies to Sustain Competitive Advantage

Starbucks: Strategies to Sustain Competitive Advantage. Key Issues. Definition of “industry” Coffee? Pursuit of growth: Control of independent vendors, partners, and licensees Suppliers: Quality, stable supply Rivals: Grocery producers, fragmented houses, foreign. Outlook.

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Starbucks: Strategies to Sustain Competitive Advantage

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  1. Starbucks: Strategies to Sustain Competitive Advantage

  2. Key Issues • Definition of “industry” • Coffee? • Pursuit of growth: • Control of independent vendors, partners, and licensees • Suppliers: • Quality, stable supply • Rivals: • Grocery producers, fragmented houses, foreign

  3. Outlook • Growth in consumption: • 15% per year • per capita rebounding to 2-3 cups/day • Shift in demand for coffee types/channels: • Specialty coffee growing faster than basic • More being sold via specialty stores vs. grocers

  4. General Environmental Forces • Social • Political • Technological • Global • Legal • Economic • NET EFFECT?

  5. Five Forces • Buyers • Suppliers • Substitutes • New entrants • Rivalry • NET EFFECT?

  6. External Analysis Opportunities: Threats:

  7. Value Chain of Firm Activities Firm Infrastructure Human Resource Management MARGIN Technological Development Procurement Service Inbound Logistics Marketing & Sales Outbound Logistics Operations

  8. Internal Analysis Strengths: Weaknesses:

  9. Mission and Goals • Mission/vision: • Define industry, values, customers, etc. • Overall strategic approach • Goals: • Financial • Strategic

  10. Strategic Recommendations • Do XX • Value chain activity ‘a’ • Value chain activity ‘b’ • Result: Eliminates vulnerability to SWOT • Do YY • Value chain activity ‘a’ • Value chain activity ‘c’ • Result: Increases extent of experiential differentiation, buffers against new rivals

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