Starbucks Strategic Analysis

Starbucks

Executive Summary

This case study analyzes Starbucks’ growth, internationalization and performance between 1993 and 2009. The company had enjoyed tremendous growth over the previous two decades. We will analyze Starbucks’ position and its strategies, analyze potential alternatives and recommend one, including a related implementation plan.

Gordon Bowker, Jerry Baldwin, and Zev Siegl started their very first Starbuck in Seattle in 1971. By 2015, Starbucks had achieved a global reach of over 21,000 store s in over 65 countries.

The main competition of Starbucks is McDonalds and Dunkin Donuts, however, these two competitors for the most part are targeting different coffee markets. While Starbucks targets premium to middle income segments, McDonalds and Dunkin Donuts has mainly targeted the middle to lower income segments, although McDonalds has expanded into the premium segment as well now. Each of these competing companies are expanding internationally and have a large presence in North America.

The main issue with Starbucks was its international growth at the cost of its domestic market share to McDonalds. Starbucks has relied on its brand and target market in the past to further its growth and market share in the past. The Starbucks brand is known all over the world, and countries are becoming more and more developed. It’s these two strengths that Starbucks should focus on to retain and expand its market as these two strengths have always been quite distinguishable from its competitors and will continue to be if they are kept after properly.

Original Vision and Mission Statements

Vision Statement

“Establish Starbucks as the premier provider of the finest coffee in the world while maintaining our uncompromising principles while we grow.”(Starbucks)

Mission Statement

“To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”(Starbucks)

Starbucks’ Strategy to Meet Its Mission

To accomplish its mission,...