COMPANY OVERVIEW

• Roaster, marketer and retailer of coffee.

• Has millions of customers everyday and more than 30000 retail stores in 80 markets.
• Stores are a neighborhood gathering places for meeting friends and family.
• Offer a variety of products including more than 30 blends of coffee.
STARBUCKS MISSION STATEMENT

“To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.”
 CHARACTERISTICS OF MISSION
STATEMENT

• Broad in scope
• Precise
• Clear
• Revealing social responsibility of the company
• Indicative of how objectives are achieved
• Inclusive of major components of strategy.
DUNKIN’ DONUTS MISSION STATEMENT

“To be the leading provider of the wide range delicious beverages & baked
product around the kingdom in a convenient, relaxed, friendly environment,
that insures the highest level of quality product and best value for money.  
          We provide our guest, the elegant service and unforgettable
experience to meet their expectations in every single visit.​ ”
 CAFÉ COFFEE DAY MISSION

“To be the best Cafe chain by offering a world

class coffee experience at affordable prices.”
 STARBUCKS VISION STATEMENT

“To establish Starbucks as the premier

purveyor of the finest coffee in the world while
maintaining our uncompromising principles
while we grow.”
 CHARACTERISTICS OF VISION

• Organizational charter of values

• Ultimate source of priorities, plans and goals.
• A puller into the future.
• It should not be:
 An advertising slogan
 A plan from the top
 A history of top past
 DUNKIN DONUTS VISION

“To be always the desired place for great coffee

beverages and delicious complementary donuts &
bakery products to enjoy with family and
friends.”
 CCD VISION STATEMENT

“To be the only office for dialogue over a cup of

coffee.”
SWOT ANALYSIS
 STRENGTH
• Strong Brand Image
• Strong Financial Performance
• Global Presence and supply chain
• Positive Employee Treatment (listed as one of
the Fortune’s Top 100 places to work for)
OPPORTUNITY
• Expansion in developing markets
• Expansion of ready-to-drink coffee products
in the U.S. market.
WEAKNESS
• Generalized standards for most products
• High price points
•Huge dependence upon U.S. Market
THREAT
• Economic conditions in the U.S. And
international markets
• Trade-war between U.S. And China
• Rising Coffee Beans prices
• Intense competition in each of it’s channels
and markets
CONCENTRATION

STRATEGIES
 ANSOFF’S MATRIX
EXISTING PRODUCTS NEW
MARKET PENETRATION PRODUCT DEVELOPMENT
EXISTING
MARKETS

MARKET DEVELOPMENT DIVERSIFICATION

PRODUCT- TRADITIONAL
MARKET
NEW MARKET - BANGLADESH
NEW
MARKET PENETRATION

• EXPAND SALES OF EXISTING

PRODUCT IN EXISTING
MARKET
• DEEP KNOWLEDGE
• MORE PRODUCTS TO EXISTING
CUSTOMERS
• ACHIEVE NEW CUSTOMERS
• EXAMPLE : WHITE CUP
CONTEST
PRODUCT DEVELOPMENT

• INTRODUCING NEW
PRODUCTS INTO EXISTING
MARKETS
• INTRODUCING PRODUCTS
LIKE SODA STARBUCKS,
READY TO BREW COFFEE,
STEAK, EGGS
• NEW PRODUCTS TO LAUNCH –
LUNCH MEAL, ORGANIC SOUP,
SANDWICH
MARKET DEVELOPMENT

• EXISTING PRODUCT INTO NEW

MARKET
• ORIGINAL TARGET MARKET –
AMERICAN PEOPLE
• NEW TARGET MARKET –
BANGLADESH, CERTAIN CITIES
OF CHINA
• TAPPING UNTAPPED
GEOGRAPHICAL AREAS IN ASIA
AND AFRICA
BACKWARD INTEGRATION
 BACKWARD INTEGRATION
• Backward integration is a form of vertical integration in which a company expands its role to
fulfill tasks formerly completed by businesses up the supply chain. 
• In backward integration company becomes its own supplier.
STARBUCKS ACQUIRES COFFEE FARM
  HACIENDA ALSACIA

• About 45 minutes from the Costa Rican capital of San Jose sits a nearly 600-acre coffee farm
called Hacienda Alsacia.
• Acquired by Starbucks in 2013, but producing coffee for more than 70 years.
• At the farm, Starbucks researches and develops hybrid Arabica coffee trees that are bred to be
resistant to diseases like the coffee rust fungus to ensure quality of coffee.
 REASONS FOR STARBUCKS DOING
BACKWARD INTEGRATION

• Testing and preventing coffee rust

• Coffee is a highly volatile commodity
• Purpose of research and development
• Rising production cost
• Ethical sourcing
 OUTCOME
• Starbucks was successful in developing hybrid trees resistant to coffee rust.
• It has achieved its commitment of 99% ethical sourcing
• Starbucks will provide 2 million of these tree seedlings to farmers in Guatemala, which has been
significantly impacted by coffee leaf rust.
COOPERATION STRATEGY
 A TIMELINE OF STARBUCKS’ ALLIANCES
Starbucks partnered with Barnes
and Noble to set up in-store
cafés.
Starbucks agreed to help the
NAACP fund programs and
activities that support social and
economic equality.
Delta started selling
Starbucks coffee on cross-
country flights. And by
2015 they started selling it
on all their flights.
1993
Starbucks joined Kraft (and
1998 later Acosta) to get their
packaged goods to grocery
store shelves.
2006
Through an alliance with
2007 Apple, Starbucks customers
were able to access each
location’s music playlist
2013 through wi-fi and download
music from iTunes store.
 STARBUCKS AND TATA
The JV was named Tata Starbucks Limited.
What Tata brought in for Starbucks:-
 Tata is one of the companies in India that had
good retail experience.
 Tata’s reputation, customer loyalty and
perception.
 Their well-established distribution channel.
 STARBUCKS AND ALIBABA

 What Alibaba brought in for Starbucks:-

 A fully immersive digital experience.
 Developing a broader customer base through
Alibaba’s retail website.
 Alibaba helps makes coffee available in not
just the traditional physical means but also
through virtual stores.