E-Business Plan: Starbucks

E-Business Plan: Starbucks

Executive Summary

Background

Starbucks Coffee Company, headquartered in Seattle, WA was founded in 1971 and currently has locations in thirty seven (37) countries around the world. The business and marketing plans provide the structure for the company-operated retail stores. Using a strong differentiation strategy, Starbucks has created a strategy designed to transform a $.50 commodity into a $4 experience.

Starbucks mission is ‘To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time.’

This report provides an analysis of the strategies used by Starbucks to restructure the management team with the expressed purpose of developing a plan to ensure economic growth in the global market. The plan incorporates the three strategic stances governing principles of Starbucks: creating the third place experience, building a human connection, and providing a quality everyday experience for customers.

Within the marketing and business plans, the following strategies were used including:

• Horizontal Integration: acquisitions of Seattle’s Best, Torrefazione Italia and Teavana

• Market Penetration: product placement outside of retail stores

• Market Development: educating the consumer about specialty coffee and drinks

• Value Chain Development: the human connection gained by business ecosystem maintenance.

Discussion

As Starbucks continues to expand quickly into vast markets, the management must ensure to maintain the quality of the products throughout the world. The Starbucks franchises in Seattle and New York must uphold the same standards or Starbucks jeopardizes their excellent reputation. In addition, Starbucks must maintain a product of high standard for the price. If not, consumers would be less likely to pay the premium price, thus, resulting in a significant loss of market share.

Statement of Problem

Given the recognition and reputation of Starbucks, competitive threat is moderate. Areas of...