Starbucks A Strategic Analysis

4939 words - 20 pages

Starbucks a Strategic Analysis
Past Decisions and Future Options
1

Contents
Introduction ......................................................................................................................... 4
Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7
Industry Rivalry ............................................................................................................................ 8
Potential for new entrants ........................................................................................................ 10
Substitute Products ...view middle of the document...

............ 25
The Catalog ................................................................................................................................ 26
The 1990s .................................................................................................................................. 26
Employee Satisfaction ............................................................................................................... 27
Maintaining quality of Arabica beans........................................................................................ 29
The Third Place .......................................................................................................................... 32
Five Factors in Starbucks’ Success ................................................................................... 33
Michael Porter’s 5 Forces Model (Present) ...................................................................... 34
Industry Rivalry .......................................................................................................................... 34
Potential for New Entrants ........................................................................................................ 39
Substitute Products ................................................................................................................... 41
Supplier Bargaining Power ........................................................................................................ 42
Bargaining Power of Buyers ...................................................................................................... 44
Summary: Five Forces Analysis as of 2007 ..................................................................... 46
The Specialty Coffee Industry Life Cycle: ....................................................................... 47
An Evolutionary Process................................................................................................... 47
Specialty Coffee Growth Rate ................................................................................................... 48
Target Consumer Segment ........................................................................................................ 50
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Strategic Adaptation Strategies................................................................................................. 52
Starbucks’ Corporate Capabilities .................................................................................... 55
Competitive Advantage in a Mature Industry................................................................... 57
Market Signaling ............................................................................................................... 61
Summary of Analysis ........................................................................................................ 66
Recommendations for Future Action...

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