Starbucks 1996 Case Study

Starbucks 1996 Case Background: By 1996, Howard Schultz, Chairman and CEO of Starbucks mess had firmly established a leadership position in the specialty coffee bean industry. By the end of fiscal 1996 Starbucks assiduous more than 20,000 people and encompassed over 1,000 retail locations in 32 market places throughout North America as well as two new stores in Tokyo, Japan. With such rapid suppuration and an ongoing evaluation of new opportunities within domestic and international retail markets, new specialty sales partners, penetration into the grocery store channel, and the future potential of their mail order stemma- Starbucks was in a position to attempt developing its brand beyond universe the preferred outlet for purchasing coffee to becoming a preferred consumer brand. Key Questions: 1) Is Starbucks growing in the best elbow room possible? 2) Is Starbucks overextending in its quest for growth? Analysis: The coffee industry was highly fragmented with few dominant players.

Competitively, Starbucks had a clear stronghold on all facets: Sourcing (diversified portfolio of high type exporters/close relationships with those exporters) Packaging (unique vacuum sealed package, ensuring a higher(prenominal) degree of freshness than competition) Supply Chain Operations (best back breaker rates in the industry/ SCO serving four business units in order to eliminate redundancy and maximize efficiency) retail Sales (primary growth vehicle/adoption of brand consequence/experience by customer) Employees / Baristas (overall, most highly trained and conditioned in the industry) Merchandising (only carrying the highest quality coffee-making equipment and accessories) Disciplined Real-Estate approach (tremendous tractability and innovative store clustering concept maximizing market share in given areas and building regional reputation) fortissimo Sales (partnerships existed with many different companies providing Starbucks with revenue growth... If you want to bring in a full essay, order it on our website: Ordercustompaper.com

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