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Starbucks Case Study Analysis

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Starbucks Coffee Company: Transformation and Renewal - Case Study Analysis

1. Starbucks’ decline was highly attributed to its rapid growth in the early 2000s. The accelerated number of stores being built created a number of problems including the saturation the Starbucks Experience it so highly valued as well as a drop in sales due to competition with existing Starbucks stores in any given area. This same-store sales being taken from one another gave Starbucks the feeling of “cannibalism” from within its own company. The desire to achieve high efficiency and reach financial goals led to the dilution of Starbucks’ ability to maintain its differentiation strategy through its most valuable resource, its reputation. The company lost control of its merchant narrative and its intimacy with its customers.
Starbucks successful journey in becoming the market leader in the young sector is a result of Starbucks’ resources including its reputation, brand, financial resources, its highly organized and efficient senior leadership team, and differentiated product offering. These available resources Starbucks owns allowed them to give its customers a product and an experience not easily found or imitable elsewhere. It gained a loyal following that continues to grow today and has been seen to be the biggest contributors to Starbucks success today in maintaining its position as the largest specialty coffee retailer in the world.
Starbucks’ capabilities include its ability to grow and expand rapidly, dependable and socially conscious supply chain, steady channels of distribution, ability to respond and innovate quickly and efficiently according to demand. Its capabilities although are also largely responsible for the company’s overall success in the market, they are also the source of the company’s downfall with respect to its inner operations. Starbucks has been able to grow...

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