Case Analysis Notes

Starbucks current strategy is to continue it’s focus on growth, aggressively grow in all targeted markets, leverage the brand into new product categories and channels, continue operations improvement, grow through innovation, develop and maintain leadership talent, and maintain its values, culture and guiding principles.

In creating and building a brand, Starbucks worked to identify elements (target customers, target needs (what do the consumers need?), target value proposition (why STARBUCKS versus other products?), target message, mix/media/spend, and to make sure all of the elements were aligned.

(N America)Opportunities- Enormous core growth potential continues to remain. Plenty of room left in N America to continue driving new store growth. Has flexible and innovative store design. Originally a neighborhood store opened in 1988, relocated to a drive through in April 2001, drive thrus are a growth opportunity in new and existing markets. Higher average revenues per company-operated store. Continuous product innovation, increasing throughput and customer satisfaction (starbucks card). Ready-to-drink business expansion (ie Starbucks Doubleshot). Supermarket growth opportunity driven by consumer conversion and new products. Opportunities in foodservice and branded consumer products. Leveraging the brand (additional products-at home house blend, ice cream, chilled drinks).

(International) continued rapid retail expansion, over 15,000+ stores outside n America. Capture first mover advantage, win in the UK, continue Japan success, develop other channels, enhance global infrastructure.

Growth strategy- set the bar high, own the coffeehouse experience, drive preemptive market entry, pursue aggressive infill strategy, continuously improve operations, leverage the brand into related product categories and channels of distribution, continuously innovate, develop and retain leadership talent.

Financial goals- grow revenue by atleast 20% per year, margin improvement, target 20-25% year over year EPS growth.

Vision- be known