# STARBUCKS

❖ INTRODUCTION
Starbucks Corporation, founded in 1971 in Seattle, Washington, is a globally
renowned coffeehouse chain and coffee company. Known for its distinctive green
logo and inviting ambiance, Starbucks has become synonymous with high-quality
coffee and a unique café experience. The company initially focused on providing
premium coffee beans, equipment, and accessories, but it later evolved into a
prominent coffeehouse brand, serving a diverse menu of beverages, snacks, and
pastries. Starbucks has expanded internationally and is celebrated for its
commitment to ethical sourcing, environmental sustainability, and community
engagement.
New Starbucks CEO Laxman Narasimhan, In addition to drinks and food, many
stores carry Starbucks' official merchandise, such as mugs, tumblers, scoops, and
coffee presses. There are also several select "Starbucks Evenings"
 ❖HISTORY OF STARBUCKS
1. Gerald Baldwin, Gordon Bowker, and Ziev Siegl-
opened a small coffee shop in Seattle's Pike Place
Market in 1971.
2. Howard Schultz-Joined the Starbucks marketing
team.
3. Traveled to Italy and became interested in the
espresso bars and tried to bring it to America.
4. Founders sold the company to Shultz.
5. Began to open new stores and had 140 stores by
1992.
6. Decided to take the company public and succeeded
by opening more stores.
7. Shultz continued to take the position as chairman and
chief global strategist and hired CEO Orin Smith.
 ❖COMPETITORS AND FAILURE
• COMPETITORS OF STARBUCKS
➢ Starbucks remains the leading company in the coffee industry with $29.1 billion of annual sales in 2021.
➢ Starbucks operates over 34,000 stores and is embarking on aggressive measures to reduce waste and
product efficiency.
➢ Dunkin' Donuts was acquired by Inspire Brands in 2020 and now has the ability to leverage economies of
scale.
➢ McDonald's now offers 23 different beverage products as part of its McCafé line and generated over $23
billion of company-wide sales in 2021.
➢ Folgers and Maxwell House rival Starbucks with in-home coffee products, though their rivalry is limited
due to a lack of storefronts.
 ❖ FAILURE OF STARBUCKS
• Major dependence on a single product line (coffee) and high prices
compared to some competitors
• Intense competition in the coffee industry and limited international
expansion in some markets
• Potential negative impact of commodity price fluctuations and
dependence on a large number of company-operated stores
• Glitches in the Starbucks app and incomplete integration of the
technology into the chain's day-to-day business
• Lack of work performance culture among the employees and
diminishing company values
 ❖LEADERSHIP
1) In 2015 the campaign namely "Race Together " was started by the
Starbuck in the US.
2) The main motive of the campaign was to encourage conversation race
relations.
3) Starbuck abandoned the campaign but implemented the strategy
focusing on community engagement.
4) Howard Schultz the then CEO played a key role in reevaluating the
approach.
5) The company shifted it focus to plans like the Starbucks college
achievement plan which aimed at providing education opportunities to
its employees.
6) This strategy aimed to make a positive impact and rebuild trust.
 ❖TURNAROUND STRATEGIES USED

1. Usage of social media

2. Loyalty programs

3. Strategic alliances

4. In – store marketing

5. Mobile app

6. Social responsibility
 ❖ CURRENT MARKET POSITION
• Starbucks plans to operate 1,000 stores in India by 2028, opening the equivalent of one new location
every three days for the next four years, as demand for coffee burgeons in the world's fastest-growing
major economy.
• To achieve its target, the company will focus on opening coffee shops in smaller cities and also double its
workforce in the country to 8,600, it said in a statement Tuesday.
• Starbucks currently has 390 stores in India, where it has operated for over 11 years through a 50% joint
venture with Tata Consumer Products, a unit of one of India's best-known conglomerates. Its first location
was Mumbai, where it opened a two-level store furnished with local furniture and decorated with images
of the metropolis.
• Apart from the usual range of lattes and Frappuccinos, Starbucks also offers beverages that it calls
"Indian-inspired," including South Indian filter coffee and masala chai, a blend of sweetened
milky tea and spices.