Professional Documents
Culture Documents
MUZNA REHMAN
BEENISH HAYAT
RABIA FATIMA
LAILA FAREED
AMNA TAYAB
ERUM ASIF
CONCENTRATION
DIVERSIFICATION
• Related Diversification
Food items
Coffee Beans
Coffee flavored ice-cream
Ready to drink beverages
Coffee related accessories and
equipment
• UNRELATED DIVERSIFICATION
Starbucks has started a pre-paid card service and has also opened a hear
music café.
They also have to respect the culture and the heritage of the countries they go in.
What competitive advantage(s) do you think
Starbucks has? What will it have to do to
maintain that (those) competitive
advantage(s)?
Valued Employees
Employees are highly valued Starbucks
It has lowest level of employee attrition
Finest Coffee
Starbucks has started a Café life that never existed.
Strong Brand Management
Starbucks has been very powerful in brand
management.
Quality Control
The company’s growth is governed by
whether the quality is maintained.
Steps to maintain Competitive Advantage
STRENGTHS
Joint Ventures.
Quality Control.
Customer responsive culture and aura inside
Starbucks.
Finest Coffee.
Wide Geographic Coverage.
Strong Brand Management.
Product diversification.
Established logo, developed brand, copyrights,
trademarks, website and patents.
Company operated retail stores, International stores.
High visibility locations to attract customers.
Valued and motivated employees, good work
environment.
Good relationships with suppliers.
Industry market leader.
Globalized.
Widespread and consistent.
Knowledge based.
Strong Board.
Strong financial foundation.
WEAKNESSES
Size.
Lack of internal focus (too much
focus
on expansion).
Cross functional management.
Product pricing (Products are
expensive as compared to its
competitors).
OPPORTUNITIES
Expansion into retail operations.
Technological advances.
New distribution channels (There would
be new ways in delivering the products).
New products.
Distribution agreements.
Brand extension.
Emerging international markets.
Continued domestic expansion/domination
of segment.
THREATS
Competition (restaurants, street carts,
supermarkets, other coffee shops, other caffeine
based products).
US market saturation.
Coffee price volatility in developing countries.
Negative publicity from poorly treated farmers in
supplying countries.
Consumer trends toward more healthy ways and
away from caffeine.
Fragile state of worldwide production of specialty
coffees.
Corporate behemoth image.
Cultural and Political issues in foreign countries.
QUERIES
SESSION