OLIVAREZ COLLEGE

Dr. A. Santos Avenue, Sucat Road,

Paranaque

Submitted by: Julie Ann G. Bautista

BSBA- MM II
Governance

Prof. Jon Mina

Subject: Good

CASE WRITING
Conclusion:
The key issue facing this firm was its attempts at massive expansion and creating
new value innovation. The need to expand could cause the company to become
overexposed and risk its ability to change. New players in the field such McDonalds
pose a new potential threat competition through it is unclear if they share the same
market.

Above are Porters 6 Forces and their level of threat of Starbucks. The bargaining
power of suppliers is high because of the natural resources needed to create their
ingredients and Starbucks believes in finding fair trade high quality beans, often
from their other countries. These specifications limit the number of suppliers. The

threat of new entrants is medium in that the coffee market is changing. However
Starbucks is the household name. Industry competitors is one on the rise because
McDonalds creating McCafe line.
I.

TIME CONTEXT 2009

II.

POINT OF VIEW MARKETING ANALYST

III.

OBJECTIVE:
SHORT TERM- To increase the market share for 6 months and promote the
products and increase the physical location.
LONG TERM- To have store expansion and growth strategies for each of its
segments. Its entry to into the tea industry and its initiatives to boost
consumer relations. The company plans to take the following steps to
ensure growth in the upcoming fiscal years.

IV.

SWOT
Internal
Strengths- Convenient: locations are everywhere as one of the companys
main goals.
Weaknesses- Overexposure: Starbucks goal to have 30,000 locations
stalled in the recent recessions. By becoming overexposed they risk losing
unique quality they were founded.
External
Opportunities- On the go lifestyle: Via instant coffee and other products to
be in groceries and convenience stores.
Threats- Cheaper Alternatives: Cheaper alternatives from McDonalds and
Dunkin Donuts.

V.

ACA
ACA 1 : I will conduct more days for training to my staff.
Advantage: The higher the training the higher the knowledge and create
perfect coffee for the satisfaction of the customer.
Disadvantage: The higher the training the higher of the cost in the
company.
ACA2: I will keep the good ambience in the store.
Advantage: Giving a good satisfaction of ambience is the customers
wants and choose Starbucks.

Disadvantage: Some of the people might choose to stay because of the

good ambience whether their beverage are finish.
VI.

RECOMMENDATION:
Exceed the expectations of your customers.
What separates Starbucks from its competition is the relationship it has
with its customers. In Starbucks own research, the experience between
the customer and the barista is the largest reason why customers keep
coming back. The experience is more important than the actual drink.
Make time for coffee education including coffee seminars
including customers.
There isnt enough time for coffee education and most customers never
experience a tasting inside a store. One way to spread enthusiasm for the
whole bean coffee wall is to share that love of coffee with customers. A
person knows a subject matter well when they can teach it to others: it
would be fun to create a customer coffee master program! (I would
volunteer to be the first customer coffee master!)

VII.

PLAN OF ACTION:
There are alternative actions Starbucks can take to secure its competitive
advantage it has upheld for so long. The one item that truly separates the
two is the reputation. Starbucks has in the coffee industry unlike
McDonalds. The rest is similar which shows a threat to Starbucks
becoming part of red ocean. My suggestion would be create more
customization by allowing users to create new flavors and drinks and
beyond the options they have now. This would incorporate with the other
creation of online user experience.