1. Starbucks: Strategies to Sustain Competitive Advantage

2. Key Issues Definition of “industry” Pursuit of growth: Suppliers:
Coffee?
Pursuit of growth:
Control of independent vendors, partners, and licensees
Suppliers:
Quality, stable supply
Rivals:
Grocery producers, fragmented houses, foreign

3. Outlook Growth in consumption:
15% per year
per capita rebounding to 2-3 cups/day
Shift in demand for coffee types/channels:
Specialty coffee growing faster than basic
More being sold via specialty stores vs. grocers

4. General Environmental Forces
Social
Political
Technological
Global
Legal
Economic
NET EFFECT?

5. Five Forces Buyers Suppliers Substitutes New entrants Rivalry
NET EFFECT?

6. External Analysis
Opportunities:
Threats:

7. Value Chain of Firm Activities
Firm Infrastructure
Human Resource Management
MARGIN
Technological Development
Procurement
Service
Inbound
Logistics
Outbound
Logistics
Marketing
& Sales
Operations 21

8. Internal Analysis
Strengths:
Weaknesses:

9. Mission and Goals Mission/vision: Goals:
Define industry, values, customers, etc.
Overall strategic approach
Goals:
Financial
Strategic

10. Strategic Recommendations
Do XX
Value chain activity ‘a’
Value chain activity ‘b’
Result: Eliminates vulnerability to SWOT
Do YY
Value chain activity ‘c’
Result: Increases extent of experiential differentiation, buffers against new rivals