GROUP 3

ASMANEE

YAMAREEMONG G1116942

MUANPRAE NARARAK
WANHASUN
NATEE

SUDEN
WAIYASIL

NURFITTREE
KORN

G1118270
G1118923
G1120449

MAHA

G1128372

KLABKASEM

G1214771

Contents

History of Starbucks
Mission and Vision
SPEELTD Analysis
Starbucks Stores
Porters 5 Forces
Starbucks life cycle
SWOT analysis
Marketing Mix
Channel expansion
In cases:

Starbucks policy
sources of competitive advantage
keeping its market share
the attractive and unattractive features

Conclusion & Recommendation

History of Starbucks

Starbuckss Mission
and Vision Statement

Mission Statement:

The mission of Starbucks is to establish

Starbucks
as thepremier purveyor of the finest coffee
in the world while maintaining our
uncompromising principles while we grow

The principles of how we

live that every day
Our Coffee : It has always been, and will always
be, about quality.
Our Partners : We always treat each other with
respect and dignity. And we hold each other to
that standard.
Our Customers : When we are fully engaged,
we connect with, laugh with, and uplift the lives
of our customers.
Our Stores : Its about enjoyment at the speed
of life.
Our Neighborhood : We can be a force for
positive action
Our Shareholders : We are fully accountable to
get each of these elements right so that

Vision:
To inspire and nurture the human spirit
one person, one cup and one
neighborhood at a time

SPEELTD Analysis
Analyzing in macro-environment can use
SPEELT analysis method to analyze the overall
business environment.

Social

Normally, European
and American were
preferred to drink
coffee. An observation
reveal that American
drink coffee
approximately 1.8 cups
per day.

Political

Government policies may not have much

effect on the industry except the governm
ent encourage farmers to plant more coffee
. It would makes the coffee business have l
ower cost.

Economic

Due to economical recession. Especially in

financial crisis in America, this decreased c
onsumption index of American and people
around the world. As a result, it make peopl
e drank coffee less.

Environment
Environment
problems around
the world such as
Global warming
make coffee beans
producing
decreased because
the weather are not
properly to plant.

Legal

In some place, cafe do not allow to open

more over 12 AM. Therefore, they have to
apply permit. this make people have more
time to drink coffee, especially in Los Angel
is, America.

Technology

In present day, life cycle to produce products

are shorter. Hence, business have to develop t
heir products every time to serve customers n
eeds and to be leader in their competitiveness
.

Demographic

Aged: based on
observations, it
found that trend to
consume coffee of
old people have
increased
continuously.
Region: America
and Europe have
consumed coffee
more than Asian.

Starbucks Stores

-In 2009, Starbucks had store around the world 16,635

branches.
-The majority is in America and followed by Europe
and Asia respectively.
-64% of Starbucks stores were in USA and the rest
were in Canada, South Korea, Mexico, Japan, Taiwan, P
hilippines, Germany, Thailand, Turkey, Malaysia, Hong

 Since 2007 to 2009, Starbucks earned

revenue approximately 2,264 million dollars p
er quarter. The growing rate 0.25% per quarte
r. Mainly, their revenue got from sales bevera
ge by Starbucks administration.
They earned
revenue from
licensing and
copyright just
about 200300 million
US dollars
and from
food(except
beverage)onl
y about 3%.

 Starbucks had expenses per quarter about

2,316 million US dollars and gained 0.9% per qu
arter. It can differentiate as follow:

Cost of sales and Occupancy costs 45.94%

Store operating expenses 37.40%
Other operating expenses 2.59%
Depreciation and amortization expenses 5.85%
General and administrative expenses 5.88%
Restructuring charges 2.35%

As a result, average Earning before interest and

tax since 2007 to 2009 were amount 148 million U
S dollars per quarter and growing rate -5.8% per
quarter because the company lost -51 million US
$ in third quarter and -22 million in fourth quarter
US$ in 2008 and 2009 respectively.

Porters 5 Forces
Suppliers
Buyers
Substitutes

Industry
competitors

New
entrances

The bargaining power of suppliers is high

New entrants is medium in that the coffee market is
changing
Industry competitors is on the rise because of McDonalds
creating the McCafe line
Substitutes is low, because coffee is always going to be a
desired drink and pastime of choice.
The bargaining power of buyers is low

Starbucks Lifecycle

The growth became slow

Closing non- profitable locations
Focusing efforts on international
expansion

SWOT analysis
Strength

Starbuck have a good relationship with

supplier.
Starbucks focus on quality of ingredients.
Building of value added to the product.
Starbucks use chain store instead of
franchise strategy to control quality standar
d.
The quality of services staff and
atmosphere inside Starbucks is friendly.

SWOT analysis
Weakness

A cup of coffee Starbucks is quite high.

The new flavors of Starbucks are dominated,
so it may have imitated by competitor.
Expansion to other countries requires high
investment.

SWOT analysis
Opportunity

The trends of fresh coffee market have been

more popular.
The advantage in science and technology of
coffee cultivation.

Threat

Drinks market have many different type of

product.
Health care have become more popular with
consumer.
Coffee beans quite have fluctuation in the price.

Marketing Mix
Product
The finest coffee beans
selected from around the
world.
Starbuck add local
beverage product.
A symbol of cup of
Starbuck itself.
Bottled coffee or canned
coffee for sale in
Price
supermarket.

Price of product is the same price as the standard

for coffee shops of Starbucks around the world.

Marketing Mix
Place

Starbucks distribute their product through

Starbucks branches around the world.
For bottled coffee, Starbucks sell their
products in supermarket.
Starbucks have location in the communities in
the major cities in country and abroad.

Marketing Mix

Promotion

Starbucks offer coffee to clients for event to

attract customer during festival.
Starbucks provide smart card to make it
easy and faster to customer to used service
in starbursts store.
Client may have collect point to take gift
from Starbucks
Starbucks started a community website.

Channel Expansion

Popularize the coffee culture

Increase distribution outlets and stores
Conduct the campaign in different
occasions
Targeting new market
in other
country
current
market
when the
already mature
Continuous product
development by
joining with other
brands in the market

How can Starbucks have a slowgrowth policy and yet be one of

the fastest growing company?

 Strict policy of slow-growth

Starbucks owned every coffee stores that
currently open
Starbucks chose to dominate the current
market before moving to a new market
Howard Schultz perception that trying to
keep the success not happens too fast

The slow-growth strategy build a solid

business foundation that needed in:
The resources
Tangible
Intangible
The value chain management
Inbound logistics
Outbound logistics

 Marketing and sales

Sensory branding success can make the customer

experience in all 5 dimensions

The service

Excellent service from the staff

The different store formats in different locations

Structure within the organization

5 practical theories known as Global mind-set

1.
2.
3.
4.
5.

Make it your own

Everything matters
Surprise and Delight
Embrace resistance
Leave your mark

What are Starbucks sources of

competitive advantage and are t
hey sustainable?

Brand Starbucks
Location, Design and Atmosphere
Added Value
Quality of Products and Services

How will Starbucks keep its market

share,
given the rapid entry of new compe
titors?
Maintaining community connection
The passionate partners with sincere
service.
Coffee Expertise
Innovation products
Promotion of Starbucks

What are the attractive and

unattractive features of the specia
lty coffee/ coffee house industry?
Attractive features

The market of coffee's consumer have

increased. Hence, many investors are intere
sted in coffee business.
There are many variety of target market
such as student, working people, old people
, etc.
Trend and value, many people around the
world have passion toward to drink coffee. I
t make investor interested to invest in coffe
e industry.

 Entrepreneur can set high price because

customers more focus on brand and favor
than prices of coffee.
There are various kind of coffee beans such
as Arabica, Robusta, Espresso, etc.
Entrepreneurs have much power to bargain
or deal with the coffee beans producer

Unattractive features

Due to trend of health conscious of

consumers, possibly they will shift to health
y drinks.
Difficult to acquire coffee beans with good
quality regularly.
There are many substitute products such
as tea, green tea, milk, juices, etc.
There are many brands in the market.
Therefore, new entrepreneur have to compe
te a lot with older brands in the markets.

Conclusion &
Recommendation
Starbucks has maintained a competitive advantage

since creating its original blue ocean of bringing qual

ity, bistro-style coffee choices to the masses.
Currently, it will need to focus on its core
competencies and avoid spreading themselves to thi
n.
To avoid competitors such as McDonalds and other
coffee chains, they will need to create new value inn
ovation by enhancing the customer experience by in
vesting in online content and interactivity.
Rather than creating more new products, we think
their strength lies in their brand and by enhancing th
e connection to their loyal customers, they will separ
ate themselves from McDonalds and others.

Q&A

THANK
YOU