Caso Starbuks

Starbucks a Strategic Analysis Past Decisions and Future Options

4/17/2008 Brown University Economics Department Ryan C. Larson 08’

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Contents Introduction ......................................................................................................................... 4 Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7 Industry Rivalry ............................................................................................................................ 8

Potential for new entrants ........................................................................................................ 10

Substitute Products ................................................................................................................... 12

Bargaining Power of Buyers ...................................................................................................... 13

Bargaining Power of Suppliers................................................................................................... 14 Summary: The Five Market Forces in Specialty Coffee in 1987 ..................................... 15 Specialty Coffee Industry Attractiveness.......................................................................... 16 Starbucks’ Original Generic Strategy ............................................................................... 19 Starbucks’ Success Factors ............................................................................................... 22 First-mover advantage .............................................................................................................. 22

Expansion East ........................................................................................................................... 23

California Expansion .................................................................................................................. 25

The Catalog ................................................................................................................................ 26

The 1990s .................................................................................................................................. 26

Employee Satisfaction ............................................................................................................... 27

Maintaining quality of Arabica beans ........................................................................................ 29

The Third Place .......................................................................................................................... 32 Five Factors in Starbucks’ Success ................................................................................... 33 Michael Porter’s 5 Forces Model (Present) ...................................................................... 34 Industry Rivalry .......................................................................................................................... 34

Potential for New Entrants ........................................................................................................ 39

Substitute Products ................................................................................................................... 41

Supplier Bargaining Power ........................................................................................................ 42

Bargaining Power of Buyers ...................................................................................................... 44 Summary: Five Forces Analysis as of 2007 ..................................................................... 46 The Specialty Coffee Industry Life Cycle: ....................................................................... 47 An Evolutionary Process................................................................................................... 47 Specialty Coffee Growth Rate ................................................................................................... 48

Target Consumer Segment ........................................................................................................ 50

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Strategic Adaptation Strategies ................................................................................................. 52 Starbucks’ Corporate Capabilities .................................................................................... 55 Competitive Advantage in a Mature Industry ................................................................... 57 Market Signaling ............................................................................................................... 61 Summary of Analysis ........................................................................................................ 66 Recommendations for Future Action ................................................................................ 68 Increase International Expansion .............................................................................................. 69

Rewards Program ...................................................................................................................... 70

Rent Out Meeting Space and Install Free Wireless Internet ..................................................... 71

CD Burning ................................................................................................................................. 72

Increase Connection with Customer ......................................................................................... 72

Continually Improve the Coffee ................................................................................................ 74

Becoming More Environmentally Friendly ................................................................................ 74

Exhibit 1 ................................................................................................................................. 76

Exhibit

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