Starbucks Case Study

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Starbucks Case Study [pic]
Overview

First Starbucks was a Private Company, from its inception in 1971, to it 's initial public offering in 1992. We believe that there since the beginning, Starbucks strategy has been one of growth. They have demonstrated all dimensions of a growth strategy: Internationalization in expanding into new countries and the global market. It has shown concentration in being creative and relying on it 's core competency of making high quality coffee and coffee equipment to develop new products and markets. Horizontal Integration has been evident in the many strategic acquisitions, partnerships, and joint ventures. Vertical Integration has been another key success factor as Starbucks
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■ Currently they are promoting their new Tazo green tea Frappuccino Blended crème. (Inspired by Japanese tradition)

Strengths Weaknesses Opportunities Threats

Strengths

■ Starbucks Corporation is a very profitable organization, earning $600 million and generating revenue of $5 billion in 2004.

■ Ad Week Magazine recognized the Company as one of the “Most Trusted Brands” in 2003. “The Starbucks logo is recognized by most, which also helps to retain customers that travel internationally, allowing them to get the same Starbucks coffee in the same Starbucks cup that they enjoy back home.”

■ It is a global coffee brand built upon a reputation for fine products and services. It has about 8500 stores in over 30 countries.

■ Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce.

■ They have strong ethical values and an ethical mission statement as follows, “Starbucks is committed to a role of environmental leadership in all facets of our business.”

Weaknesses

■ Starbucks has a reputation for new product development and creativity. However, they are dependant on a main competitive advantage, the retail of coffee. ■ Overcrowding the

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