• Presented By Nimra Nasar

70’s
• 1971- Starbucks
opens first store
in Seattle’s Pike
Place Market.`
80’s
• 1982-Howard Schultz joins
Starbucks as director of retail
operations and marketing.
Starbucks begins providing
coffee to fine restaurants and
espresso bars
• 1983-Developed coffeehouse
in Seattle based on Cafes in
Italy.
• 1984- First Starbucks café late
served
• 1987- expanded to 17 stores
90’s
• 1995- Beginning of the
Frappes- total stores 677
• 1997- Starbucks
Foundation starts
• 1998- Tazo tea company is
aquired
• 1999- China, Kuwait,
Lebanon and South Korea
History

2000’s
2000- Howard Schultz transitions
to chairman and chief global
strategist
2001- Introduces the Starbucks
Card, an innovative stored‐value
card for customers to use and
reload.
2002- Starts selling Fairtrade
certified coffee in the countries
where Starbucks does business.
2002- Establishes Starbucks
Coffee Trading Company (SCTC)


2000’s cont.
2003- Seattle’s Best Coffee and
Torrefazione Italia coffee brands
are aquired
2004- 8,569 Stores
2005- Orin Smith retires as
Starbucks president and chief
executive officer. Jim Donald
promoted to president and chief
executive officer
2008- Eliminates all artificial
trans fat and makes 2 percent
milk the new standard for
espresso beverages in all U.S.
stores
Present Day
2010- Expands digital
offerings for customers with
free unlimited Wi‐Fi,
Starbucks Digital Network in
U.S. stores
16,858 Stores
2012- Becomes the world’s
largest buyer of Fair Trade
coffee

Mission Statement
1990 – October 2008
• Establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our
uncompromising principles as we grow.
Ethics
Starbucks™ Shared Planet™ is committed to doing business
responsibly. A better way to help each other and the planet.

Competition
McDonalds Dunkin Donuts
Second Cup
New World
Coffee
Caribou Coffee
SWOT ANALYSIS
STRENGTHS
Brand Name
Recognition
Quality Products
Well Developed
Corporate Strategy
Location
Distribution
Manufacturing
competencies
WEAKNESSES
Narrow Product Line
Complicated Products
OPPORTUNITIES
Expand into foreign
markets
Widen product range
Diversify into new
growth businesses
Apply brand name
capital in new areas
THREATS
Change in consumer
tastes
Regulations
Increase in domestic
competition
Changes in
economic factors
Downturn in
economy
INTERNAL ANALYSIS
Internal Strategic Forces Weights Rating Weighted Score Comments
S1- Brand Identity 20% 4 0.8 S1. The company consistently maintains its brand,
even without heavy marketing.
S2- Quality 10% 3 0.3 S2. They search for quality beans worldwide.
S3- Variety 10% 3 0.3 S3. They offer drink variety and customization
S4. Locations 10% 5 0.5 S4. Location are everywhere as one of the
company’s main goals
S5- Convenience 20% 4 0.8 S5. The new products drive through windows ,
instore locations convenience is important
S6- Store ambiance 5% 3 0.15 S6. Ambiance was a foundation of the Starbucks’
brand and continuous in its locations.
S7- Ethics 5% 3 0.15 S7. By using fair trade ingredients they are leader
in ethics.
Internal Strategic Forces Weights Rating Weighted Score Comments
W1- Overexposure 10% 4 0.025 W1. Starbucks’ goal to have 30,000 locations
stalled in the recent recession. By becoming over
exposed their risk losing the unique quality they
were founded on.
W2- Too many Products 5% 4 0.125 W2. By constantly adding products, some products
have lost value, Seattles’ Best for example, and
they are risky endeavors.
W3- Risky investment in more
locations
5% 4 0.125 W3. Expanding locations in the US, is a high risk
and costly investment in comparison to
international expansions.
TOTAL SCORE 1.00 3.05
EXTERNAL ANALYSIS
OPPORTUNITEIS
Internal Strategic
Forces
Weights Rating Weighted Score Comments
O1- Customization 10% 4 0.4 O1. Starbucks’ introduce a completely custom
Frappacinou in Canada.
O2- Intl Market 15% 5 0.75 O2. Increasing efforts internationally, to
increase stability
O3- ON the GO Lifestyle 20% 5 1 O3. Via Instant coffee and other products to
be in groceries and convenience stores
O4. Partnerships 10% 3 0.3 O4. Partnering with more locations including
Pepsi
THREATS
Internal Strategic Forces Weights Rating Weighted Score Comments
T1- Direct Competition 15% 3 0.45 T1. Direct competition from Peets and Coffee
Beans increasing. Lack of Marketing.
T2- Cheaper
Alternatives
15% 2 0.3 T2. Cheaper alternatives from McDonalds and
Dunkin Donuts.
T3- Recession 15% 4 0.6 T3. Recession has affected customers’
willingness to send greater risk in investments.
TOTAL SCORE 1.00 3.8
Michael Porter’s 5 forces
Rivalry Among Competing Firm
There is intense competition in the coffee market
amongst established coffee shops that are
fighting to get customers. There are local coffee
shops offering specials to lure potential
customers in. Restaurants are opening earlier
and closing later to accommodate customers on
the go. With the 85% North American customers
taking their coffee to go, convenience is a major
factor.
Potential of new competitors
There is a great deal of risk of entry by potential
competitors due to the low start up costs.
McDonalds is able to add specialty coffee to their
existing services to tap into the specialty coffee
market. There is potential f $125,000 per year in
revenue to be made by each store if they are
able to successfully enter the specialty coffee
market.
Potential Development of Substitute Products
Water is a substitute which is healthy
for us and it is free. The option to buy
bottled water is also inexpensive
compared to coffee. With the focus on
healthier living, water is the ultimate
choice.
Bargaining power of suppliers
There is more bargaining power for
suppliers of technological innovations such
as automated coffee machines, latte and
espresso machines, etc. because there are
not as many suppliers for such equipment
as there are for coffee beans.
Bargaining power of Consumers
Customers did not really have
bargaining power when it came to
premium coffee such as Starbucks. The
sheer scale of Starbucks’ business
reduces the bargaining power of any
single group of buyers.
Porters’ Forces
VALUE CHAIN
Product
Development
Bean and
Ingredient
Selection
Product
Distribution
Store Front
Take Home
Products
New Value Chain
Product
Development
International
Development
Bean and
Ingredient
Selection
Product
Distribution
Online
Storefront
Customization
Storefront
Mobile Apps
Facility
Take home
Products
Mission Statement
October 2008 - Present



Need to expand Internationally instead of
opening outlets in US
Action Plan &
Recommendations
• Product Development & Market Development
• Rewards Programs ( introducing loyalty cards )
• Rent out meeting space with more official facilities
available.
• CD burning
• Continually Improve Quality of Coffee.
• Increase marketing
• Sales promotions
• Increase connection with Customers
• Promote healthy products


Starbucks’ Billboards
• In 2008, Starbucks had put up a
number of billboards in Seattle

STARBUCKS’ ADVERTISMENTS
• On May 3
rd
, 2009 Starbucks had launched a long term, multi channel
campaign. It’s goal was to emphasize the unique experience,
exceptional coffee, and the brand’s quality value
Another Ad
Campaign
• Another ad campaign for
Starbucks was for the
Frappuccino beverage.
Starbucks had launched two
campaigns at the same time
in 2010
• Via Instant Coffee
• Frappuccino drinks
Frappuccino campaign had
emphasized
Customization for the drink

Oh, wait.
“Starbucks is testing letting its customers
pour their own coffee at some stores.
Customers can pay before or after getting
their own drip coffee from a brewer near
the condiment bar, the company said on
its new customer-feedback website.”

Q & A ??
Thank You 