Internal Assessment

Internal Assessment Case study on “Starbucks”

Presented By: Hafiz Azeem Ud Din ShaikhMBAE- 1535107

Company Background

• Established in 1971 in Seattle Washington USA.

• Integration in Product Line.Coffee on United Airlines flightsOnline franchise. Bean and ground coffee to

supermarketsCoffee ice creamSelling CDs in Starbucks retail stores

Sketch of the Study• Global Expensions of the Brand.

First International Outlet in Italy.

• Rapid Grwth Era (1992- 1997)16,706 stores in 50 countries (Dec’

2009)

• Core Competency…High quality coffeeAccessible locations Affordable prices

Strike by Compettiors !!

• New Growth Strategymore revenue with lower costsclosed 900 storeseliminated 34,000 jobs

• Strategy, focus on low risk areas.

Foreign stores as a joint venture(share risk and costs)

Cont..• Retail Outlets.Approx. 131% increase (2003-2008)Approx. 47.31% increase (2009-2014)

• Horizontal DiversificationCups, Chocolates, blender and etc..

• Starbucks Mobile ApplicationsApp for Android App for iphone

I & E Assessments• Boston Matrix.(External)

• Porter’s Generic Competitive strategy (External)

• SWOT Analysis (Internal & External)

Internal Factor Analysis Summary (IFAS)

External Factor Analysis Summary (EFAS)

Grounds of the Factors

• Brand IdentityCoffee… what brand ??

• QualityZagat’s (“burgundy

bible”)online survey’ June 8, 2009

6,100 participantsDunkin’ Donuts, McDonald’s

Peet’s Coffee & Tea &The Coffee Bean & Tea Leaf

250,000 cups of coffee yearlySurvey

Cont..• Variety

French RoastItalian RoastHouse BlendBreakfast BlendEspresso Roast Espresso Verismo PodsStarbucks- Ready Brew Italian RoastFontana™ White Chocolate Sauce Ready Brew Colombia

• Locations21,366 stores in more than 65

Countries

Cont..• Convenience

Online storesAndroid & iphone apps.

• Store Ambience

• Ethics

Zagat’s Survey

Weaknesses• Overexposure

More retails (physical) outlets will cost more!!

• Too many products..Diversified products line

• Risky investment..Risky to invest in U.S12802 -56.2%

Thank You

Apps for Android

App for iphone

Store AmbienceStore Ambience

Number of Outlets