...Publications and Presentations School of Business 2009 Marketing Strategy and Alliances Analysis of Starbucks Corporation Rebecca Lingley Liberty University, rjlingley@liberty.edu Follow this and additional works at: http://digitalcommons.liberty.edu/busi_fac_pubs Part of the Business Commons Recommended Citation Lingley, Rebecca, "Marketing Strategy and Alliances Analysis of Starbucks Corporation" (2009). Faculty Publications and Presentations. Paper 10. http://digitalcommons.liberty.edu/busi_fac_pubs/10 This Article is brought to you for free and open access by the School of Business at DigitalCommons@Liberty University. It has been accepted for inclusion in Faculty Publications and Presentations by an authorized administrator of DigitalCommons@Liberty University. For more information, please contact scholarlycommunication@liberty.edu. Lingley, R MGT7002-4 RUNNING HEAD: Lingley, R MGT7002-4 Marketing Strategy and Alliances Analysis of Starbucks Corporation Rebecca J. Lingley Larson NorthCentral University 1 Lingley, R MGT7002-4 Abstract The Starbucks Corporation significantly utilizes alliances to expand market reach, improve product image, and develop greater company profitability. Starbucks, due to their market position and attributes, applies a Differentiation Focus strategy as defined by Porter’s Generic Market Theory. A review of Starbucks Corporation’s marketing strategies and alliance strategies proves that the company is...
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...1. Introduction Starbucks distinguishes itself by focusing on creating and sustaining its own ‘coffee culture’. It has long been known as a ‘third place’ other than home and workplace. It serves not only quality coffee products but distinctive customer experience. With considerable research on the strategic positioning of Starbucks, this paper will introduce the history and the present of Starbucks as well as its corporate achievements before analyzing its brand value and strategic positioning, with focus on its competition and marketing strategies. Subsequently, the influences of external factors on Starbucks will be examined through PEST analysis and Porter's Five Forces Model analysis. Next parts will be concerned with the question of how Starbucks boost the value of its strategic position. Finally, the paper will be reviewed and the comments on the sustainability of Starbucks’ strategic positioning provided. （不需要改） 2. Basic facts regarding Starbucks 2.1 Developmental History In 1971, a business called Starbucks that sold coffee and other spices was set up by several people whose names have long been basically forgotten. Howard Schultz, the most important figure in Starbucks’ history, became part of Starbucks in 1982. In a business trip to Italy, he was inspired by some famous Italian coffee brands to the idea that the lucrative coffeehouses could cultivate a sense of emotional and cultural attachment among customers. In 1986, he managed to raise sufficient venture capital...
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...in depth how Schultz and his team saved Starbucks from near-collapse, by both executing a deep, comprehensive return to its core values and, at the same time, investing in a range of new products, customer experiences and organizational capabilities designed to make the company fit for enduring success in a turbulent global economy. Set against the backdrop of the Great Recession, the case also considers the impact of unprecedented important shifts in consumer spending and confidence as well as new competitive forces on Starbucks' transformation. The case concludes by examining Schultz's own leadership journey, the lessons he learned personally during Starbucks transformation, and how he is using these lessons-within Starbucks and on the national stage-to redefine the roles and responsibilities of a public corporation in the 21st century. Based on extensive interviews conducted with Schultz and other Starbucks executives conducted from 2011 to 2014, the case offers a range of vital lessons on leadership, organizational transformation, restructuring, strategy, innovation, entrepreneurial vision, and customer service. Identifying symptoms and problems Analysis of the environment (where applicable) Analysis of the organization Balancing is, cans and musts; What is the current strategy and how is it executed? The strategic problems. What should change? Developing recommendations Decisions and implementation Problem Starbucks is struggling to maintain customer satisfaction...
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...Part 1 Obtain the information about marketing strategies that are currently being considered by your organization. Marketing strategy is a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives. Therefore I would like to discussion current marketing strategies of Starbucks. Starbucks is particularly proud of their commitment to maintaining quality, integrity, and great taste of coffee through the course of its growth, and coupled with that commitment is the high value placed on the employees (partners) worldwide. "We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience." Starbucks' value for people goes beyond the employees, however. The relationship between the strength and vitality of the communities and the success of Starbucks is highly valued: investing in communities is not only the right thing to do, it has become part of the tradition of the Starbucks culture, to help produce social, environmental...
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...Starbuck Case Analysis Starbuck Case Analysis Company Statement Starbucks, one of the most successfully coffee companies in the world, has been committed to ethically sourcing and roasting the highest-quality coffee in the world. And Howard Schulte, the CEO of Starbuck, explained Starbuck’s long vision as: an idea which was to create a chain of coffeehouses that would become America’s “third place.” Integrated view, Starbuck’s strategic intent captures the essence of winning. Starbuck want to put “high-quality coffee” into “the third place of customers”. The “product” and the “customer” are the two main essences that lead a company to success. As long as you serving the best product to satisfy and attract customers, you will be the winner in the market. In addition, Starbuck‘s strategic intent not only set the long-term goals for the company to achieve, but also provides consistency to short-term actions. “We need to introduce a new hot beverage this quarter.”, “We need to self-cannibalize the store in West Palm Beach today”: both of the two short-term goals completely meet company’s strategic intent. At last, I think Starbuck’s strategic intent gives its employees a strong goal that is worthy of commitment: we are the employees of Starbuck; we should give the customer’s best coffee and make them like our store as their “third place” to come together. Line of Business Starbuck expanded its stores in many locations which are high-traffic, high- visibility settings...
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... 08 Fall 08 Fall Exercise A - Starbucks in US: strategies and core competencies GROUP 6 Exercise A - Starbucks in US: strategies and core competencies GROUP 6 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Executive summary Within this report the Starbuck’s Corporation is being analyzed, in this way the company can be positioned on how they are performing within the competitive set. Through research Starbucks’ core competencies are found, and on elaborated. Those competencies are researched in the competitive set with the main competitors of Starbucks’ as well, via basic benchmarking there has been determined where Starbucks is within the market. Table of Contents Introduction 4 Core competencies 5 Key competitors 9 Competitive advantages 11 Communication within organization 12 Competency - strategy matrix 13 Conclusion and recommendations 14 Bibliography 15 Appendices 19 Appendix 1: Value chain analysis 19 Appendix 2: SWOT analysis 22 Appendix 3: Functional analysis 25 Appendix 4: VRIO analysis 26 Introduction The purpose of this paper is to analyze both Starbucks’ strategies and core competencies, and use this analysis to assess the degree of synergy between the two. First, the core competencies of Starbucks, specified to the US, are identified and presented...
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...MNGT2001 Business Strategy Starbucks Case Analysis Endang Abu Bakar 3171895 Dagamac Janelle Tan 3156283 Nguyen Dinh Duy 3158495 Le Duc Anh 3159239 Sutthisiriwattana Pimchanok 3175067 Ye Xintao 3156684 Tutor: Dr. Ha Huong Tutorial Group: A4 Table of content I. Introduction 1 II. Strategic Analysis 1 A. Macroenvironmental Analysis 1 1. Opportunities 2 2. Threats 2 B. Microenvironmental Analysis 2 C. Strategic Competitive Advantage 3 III. Strategic directions 3 A. Mission and Vision 4 B. Strategic Objectives 4 IV. Business Level Strategy 4 A. Differentiation 5 B. Market Penetration 5 C. Product Development 6 1. Seasonal Products 6 2. New Products 6 D. Other Strategies 7 V. International Strategy 7 VI. Strategic Implementation 7 A. General Perspectives 8 1. Strategy 8 2. System 8 B. Strategic Implementation Issues 8 1. Economic risk 8 2. Environmental risk 9 3. Global risk 9 VII. Strategic Evaluation 9 VIII. Recommendation 9 A. Financial 10 B. Customer 10 C. Internal processes 10 D. Learning and growth 10 VIII. Recommendation 11 IX. Conclusion 11 Reference 12 Appendix 13 I. Introduction Market conditions all over the world have fostered an evolution in modern business practice (Obstfeld...
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...Strategic Audit of Starbucks Traci Hall Jones College Business Policy and Administration Professor E. Smith June 20, 2011 I. Current Situation A. Current Performance Starbucks is the fastest growing food chain and shows no signs of slowing down. it plans to boost earnings by 20% to 25% annually over the next three to five years and to bring its number of storefronts to 40,000 worldwide which is 10,000 more than McDonald’s. Starbucks is conservative in how it finances its goals. Operating cash flow from existing stores pays for new-store development. So far, the return on new stores has been excellent. Increasing same-store sales has been a tougher order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off. The return on investment (ROI) for Starbucks in 2010 was 22.50%. The market share was $27.33 billion while the profitability was at 30.4% (Donald, 2007). B. Strategic Posture Starbucks has an impressive mission statement because it addresses their product as a whole and their mission for different relationships. “The Starbucks Mission Statement-To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day: Our Coffee-It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them...
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...Strategic Management Process Paper Nicole Graziano MGT/498 November 11, 2013 Amy Novoa Strategic Management Process * In an attempt to improve an organizations management plan and define strategies, often companies will develop a strategic management plan. This plan includes four basic steps, for a continuous process that will evaluate the business in its own industry against its competitors, and will challenge goals to meet the needs of the mission and vision while raising one up to the competitor. Starbucks has developed a very successful strategic planning process. The strategic management process that Starbucks uses will be described in this paper. * * Primary Components of a Strategic Management Process * According to Thomas Wheelan (2010) the four basic elements or the primary components of a strategic management process are “environmental scanning, strategy formulation, strategy implementation, and evaluation and control” (pg.14). * A strategic management process is needed for a company to succeed and achieve a better performance over the competitor. According to Kevin Blankinship, the idea and line behind strategic management is goal setting – to “combine purposeful planning with meaningful action” (Blankinship, 2013). * The first step in the planning process is to define the goals of the company. Performing a SWOT analysis is the best way to prepare for potential changes in a company. Then the leaders will need to come up with...
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...1. INTRODUCTION The history of Starbucks starts in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. In 1981 Howard Schultz first walked into Starbucks as a sales representative for a Swedish kitchen manufacturer. He immediately wanted to work for the company as he got so inspired by Starbucks but it took him a year to finally persuade the owners to hire him. The owners were reluctant initially to hire Schultz because they thought his style and high energy might not blend with the existing culture of the company. However in 1982 Starbucks hired Schultz as the new head of retail operations and marketing and shortly thereafter was sent to Milan to attend an international housewares show in Italy. When he arrived, Schultz found himself infatuated with the exciting coffee culture of Italy. Schultz went to Verona and had his first caffe latte. But he observed something more important than the coffee. The cafe customers were chatting and enjoying themselves while sipping their coffees in the elegant surroundings. That’s when Schultz was struck with an inspirational idea. In 1987 the owners of Starbucks Coffee Company decided to sell their coffee business, along with the name for $3.8 million. Schultz raised the money by convincing local investors of his vision. Now with over 17,009 stores in 55 countries...
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...Marketing Plan for Starbucks Coffee BMM 364 Assessment-Part A Written by: Tianyi Wang (WAN12383771) Written for: Leo Billington 2012/10/19 * Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 3.0 Current External Marketing Situation 4 3.1 External/General Environment analysis and Trends 4 1 Demographic Segment 4 2 Economic Segment 5 3 Political/Legal Segment 6 4 Social-Cultural Segment 6 5 Technological Segment 8 3.2 Detailed Market Analysis and Projected Demand 8 1. Market Size 8 2. Market Growth Rate 9 3.3 Industry Analysis Including Porter’s Five Forces 9 1. Threat of New Entrants 9 2. Bargaining Power of Supplies 10 3. Bargaining Power of Customers 10 4. Power of Substitutes 11 5. Intensity of Rivalry 11 3.4 Competitors Analysis 11 4.0 Current Internal Analysis 12 4.1 SWOT of the Business and the Product/Service 12 1. Strengths 12 2. Weaknesses 13 3. Opportunities 13 4. Threats 14 4.2 Issues and Risk Analysis 14 1. Strategic Risk 15 2. Operational Risk 15 3. Political Risk 15 4. Country Risk 15 5. Technological Risk 16 6 Environmental Risk 16 4.3 Ethical and Corporate Socially Responsible Behavior 16 5.0 Identify a Commercially Viable Market Opportunity 17 5.1 Market Opportunity Including Potential Segments of the Market and Justification 17 5.2 Define the Value Provided 17 5.3 Positioning statement 18 6.0 Marketing Plan Objectives 19 7.0 Conclusion...
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...Statement 5 Recommended Vision Statement 5 Mission Statement 6 Values Statement 7 Historical Marketing Eras 8 The Sales Era 10 The Marketing Department Era 11 Social Orientation /Digital Marketing Era 12 Consumer Health 13 Eco-Friendly Marketing 13 The main criteria for evaluating market segments2.3.1 20 2.3.2Market segmentation includes: 21 Adults 24 Young Adults 24 Kids and Teens 25 A Connected Customer Experience 26 Starbucks Rewards Card 27 The Finest Coffee Beans 27 Porter's Generic Strategies 27 Starbucks Pricing Strategy 28 Untapped Markets 36 Favorable Business Climate 37 Business Rejuvenation 37 Product Flexibility 37 Less Competition 37 Protection From National Trends and Events 38 Learning New Methods 38 Legal Issues 39 Language Issues 39 Cultural Barriers 39 Supervisory Oversight 40 Political Problems 40 References 42 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood around the world, and will continue to grow...
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...Introduction Starbucks has evolved over the years into a retail giant, branching out into new areas and partnering with other giants to get their brand to the masses. There are several reasons why Starbucks is on top of their market, one being the meticulous attention they pay to details. Starbucks prides itself in providing the highest quality product with excellent customer service. Coffee beans were imported from all over the world and freshly roasted in shop. The premium coffee company has a loyal following of coffee and tea consumers imbibing something like a million drinks per week at its 16,000 stores worldwide. The stores were constructed to give the customer a unique and intimate experience upon every visit. The java giant has earned the title of the world's largest coffeehouse company. But Starbucks is also one of those companies people love to hate. Whether it's the issue of recyclable cups, Fair Trade coffees, labor rights, corporate social responsibility, predatory business tactics, or over-roasted coffee, there's no shortage of strong anti-Starbucks sentiments these days. The collected data was not only showing a lack of image and product differentiation between Starbucks’ products and other smaller coffee chains but also a discontent with customer service. The branding strategy followed by the coffee company had three main components. First was the coffee itself that was believed to be the highest-quality coffee in the world, sourced from Africa. The second...
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...Lentz, and Paul Breen Re: Roasted Delivery – A New Starbucks SBU Product Line INDUSTRY OVERVIEW The coffee industry is one of the fastest growing industries in the world with an annual growth rate of 7% (Griffin, 1999). As of 2011 Americans consumed approximately 400 million cups of coffee per day, which is equal to about 146 billion cup of coffee per year. When put into the perspective of caffeine coffee represents 75% of all the caffeine consumed in the United States. While there are several different species of different coffee plants the two main species of coffee that are cultivated today are Arabica and Robusta coffee beans. Coffea Arabica also known as Arabica coffee accounts for approx. 75-80% of the current world’s production coffee. Coffea canephora also know as Robusta coffee currently accounts for 20% of all production in the world (Coffee Statistics, 2011). The specific café that Roasted Delivery chooses around the coffee industry was Starbuck. MISSION AND STRATEGY OVERVIEW Starbucks was first opened in 1971 as a single store in the Seattle’s historic Pike Place Market. In 1981 Howard Schultz (Starbucks chairman, CEO) joined Starbucks after first tasting a cup of their coffee. Starbucks with their current mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time has now found themselves with 15,000 stores existing in over 50 countries (Starbucks, 2011). Starbucks strategy has been broken down in the following parts...
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...Topic: Starbucks Marketing Strategy Name: Course: Instructor’s Name: Date: Introduction Starbucks Coffee is one of the companies that produce quality products and services. Starbucks started as a single store and through the years it has grown to a company that has over sixteen thousand stores worldwide. Starbucks has managed to maintain its reputation well-known commitment to employee satisfaction and product quality. Starbucks has some key strategies that have led to its success. Some of the key strategies include marketing strategies, acquisition strategy, strategic alliance strategy, and product differentiation strategy. All of these strategies have derived substantially reasonable advantage over its competitors. Starbucks marketing strategies have promoted their company, and they have been effective. A few points to learn from Starbuck marketing strategy include customer satisfaction, innovation, brand marketing, Corporate Social Responsibility (CSR), favorable working environment and smart partnerships. Customer satisfaction is fundamental to marketing strategy for both small and big businesses. Starbucks marketing strategy outlines that customers are the lifeline of any business. Treating customers well, with respect and ensure that the customers get value of their money will lead to customer satisfaction. Customer satisfaction gives the business owners a large clientele hence increasing sales and maximizing the profits. Creativity and introducing new ideas adds value...
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