2. Brief History
• Started in 1971 – Seattle, Washington
• Founder: Jerry Baldwin
• The idea of creating a café community
environment was inspired from Italy and
implemented by the CEO Howard Schultz.
3. • Expansion across United States and
international markets Japan and Singapore.
- In Flight offering– United Airlines
- Premium Tea: Tazo Tea Company
- Online purchasing of coffee
- Distributing whole bean and ground coffee to
supermarkets
- Premium coffee ice cream with Dreyer’s
4. Current Status
• 23,768 stores (as of November 2016) in more 50
countries.
“Our mission is to inspire and nurture the human
spirit – one person, one cup, and one
neighborhood at a time”
• Core Competencies: High quality coffee and
products at accessible locations and affordable
prices
• World’s largest buyer of Fair Trade CertifiedTM
coffee.
5. • Realized the sales slippage before competitors
during the recession and acted upon it.
• New Growth Strategy – More Revenue with
lower costs.
• Shut down 900 stores and relieved 34,000
jobs.
• Revamped the brand.
• Share value increased from $4 to $24 post
revamping
13. Four Action Framework
Create Raise Reduce Eliminate
-
Customization
- Online User
Experience
- Locations
- Variety
14. Conclusion
• Overall Starbucks has maintained a competitive
advantage with its quality, bistro-style coffee
choices to the masses.
• Need to focus on its core competencies and avoid
spreading themselves to thin.
• Create new value innovation by enhancing the
customer experience through online content to
stay ahead of competitors.
• Enhance the connections to their loyal customers
rather than developing new products.
