1. STARBUCKS COFFEE
Antoine Marion
Bayou Julie
Hazet Charles
Héberlé Camille
Helson Yohann
“We aren’t in the coffee business, serving people. We are in
the people business, serving coffee”, Howard Schultz (2004)

2. Problem Statement
Starbucks Global Quest in
2006:
Is the best yet to come?

3. Summary
1. Starbucks’ overview
2. Business model
3. Internal and external analysis
4. Recommendations

4. Starbucks’ overview
Founded in 1971
Largest coffeehouse company in the world
20,366 stores in 61 countries
1

5. Business model
High quality products
Customer’s experience Customer
willingness to pay:
Added value in stores
High attendance location HIGH
Take away culture
HIGH MARGIN PRODUCTS
2

6. INTERNAL &
EXTERNAL ANALYSIS
3

7. Pestel
Opportunities Threats
Political • International government trade
regulation & tariffs
• Foreign politic
Economic • F&B demand • Crisis
• International market • Competition
• Rents and wage rates
• Exchange rate and taxation
Social • Health consciouness
• Cultural differences
Technological • Self serving machines • Competitor’s distribution lines
• Bio technologies /
agricultural development
Environmental • CSR
Legal • Environmental regulations
• F&B industry regulation
MAIN FACTOR: EXTERNAL & SUSTAINABLE TRADE 4

8. Porter
COMPETITIVE RIVALRY SUBSTITUTES
- Intercept customers - Snacks
- Price competition Substitute - Soft drinks
products
- Independents
-
CUSTOMERS
Competitive - Price sensitive
Suppliers Customers
rivalry
++ ++ (financial crisis)
+++ - Loyalty
SUPPLIERS
- Volatility of prices
- Export quotas New
entrants NEW ENTRANTS
+++ - Low barriers
- Social media
HIGH COMPETITIVE / ATTRACTIVE MARKET 5

9. SWOT
Strengths Weaknesses
• Loyalty • Communication
• Image • Expensive products
Opportunities
Quality products Customers’ awareness
• International market
• Fair Trade
Threats
Orientation of customers’
• Competition Quality experience
choice
• Customer’s purchasing
power
OPPORTUNITIES FOR INTERNATIONAL EXPANSION 6

10. Mapping
Price
+
+
Brand image
PREMIUM PRODUCTS 7

11. Key success factors
Management
 Brand management
 Geographic coverage
 Sustainable management
of employees
Quality
 Quality control
 Good coffee knowledge
8

12. Strategy (until 2006)
Corporate Several
1 market
Strategy products
Diversification
 by acquisition
 by joint venture
 by partnership
Rapid Store expansion + focus on location
9

13. CSR Strategy
« We've always believed that businesses can - and
should - have a positive impact on the communities
they serve. »
• Fair Trade
• A « great place to work »
• Conservation International partnership (1998)
• The starbucks foundation (1997)
10

14. Financial analysis
Net Margin Income (%)
9
8
7
6
5
Healthy
4
3
2
1
situation
0
2000 2001 2002 2003 2004 2005
2005 How to
$3 million in long-term debt continue in
$1,8 billion in net investment
$193 million long term liabilities this way?
11

15. OUR
RECOMMENDATIONS
12

16. Two Alternative strategies
World expansion Customers’ Experience
• Continue domestic • Improve stores’
expansion atmosphere
• Worldwide expansion: • Enhance « Third
Huge opportunities in place » concept
BRIC
13

17. Decision grid
Critical Issue Weight World customer’s
expansion experience
Brand and 0.4 4 10
reputation
Competitive 0.3 6 9
advantage
Financial impact 0.2 4 6
Ease of setting 0.1 3 5
up
TOTAL 1 4,5 8,4
FOCUS ON CUSTOMER’S EXPERIENCE
14

18. Customer’s experience
Strategy
• Continuity of innovation in the coffee business
• Customer Relationship Management
• Adaptation to local markets
• Collector products
CHALLENGE THE STATUS QUO
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19. With this strategy…
…THE BEST YET TO COME!
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20. Thank you for your attention!
Any questions?