星巴克案例分析.docx

星巴克案例分析.docx

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星巴克案例分析

--星巴克案例分析

星巴克案例分析

营销1101班

小组成员：

马志萍蒋雯卢玉楠李雪清常利蓉

联系方式：

tufeyingxiao1101@

2014年10月22日

firmcharacteristics

intheaspectofcash,Starbucksisnearlyfreeofdebt,itfuelsexpansionwithinternalcashflow.Intheaspectofplace,thefirm’s12,000locationsintheunitedStatesaremostlyinbig cities,affluentsuburbandshoppingmalls.

promotion

Starbucksissosmartthatitpromotesitselfbyrelyingonmystiqueandword-of-mouth.Therefore,itcansavemuchmoneyonadvertising.Asthecasementions,Starbucksspendsonly1percentofrevenuesonadvertising.

Sourceofdata:

theauthorstosortout

Chart2themainuncontrollableelements

Uncontrollableelements

Example

politicalforces

the arcane regulations and generous labor benefits In France,

Starbucks should follow them and meet the labor’s needs.Only by

doing this can Starbucks gain the popularity and enhance its sales in France.

culturalforces

Frenchseemtobereadyforsweeter taste.And in Italy, the coffeebarsprovidescoffeeaswellasfood.Itisakindoffoodculture.InJapan,Starbuckshassuccessfullydevelopedabroadermenuforitsstores.ButMcDonald’salsoisattackingtheJapanesemarketwiththeintroductionofitsMcCafe’coffeeshops.

Uncontrollableelements

Example

theleveloftechnology

Starbuckscontinuestotryotherfundamentalstorechanges.Itannouncedexpansionofahigh-speedwirelessInternetservicetoabout1,200StarbuckslocationsinNorthAmericaandEurope.

Sourceofdata:

theauthorstosortout

2.Whatthemajorsourcesofriskfacingthecompanyisanddiscussespotentialsolutions.

Chart3theriskandsolution

Risk

Solution

Globalexpansion

Fullyselectofstrategyandwayofexpansion;Clearthedevelopmentdirectionafterthecompany’sexpansion.

Predictablechallenges

Effortstoimprovethebrandvalue;Createtheuniqueconsumptionatmosphere.

Staff’squality

Improvethestaff’sallowance;Beequippedwithtalent;Restrictionofcontract.

Culturalchallenges

Culturalintegration;Cross-culturaltraining;Buildasharedvision.

Sourceofdata:

theauthorstosortout

2.1Globalexpansion

GlobalexpansionposeshugerisksforStarbucks.Foronething,itmakeslessmoneyoneachoverseasstorebecausemostofthemareoperatedwithlocalpartners.Whilethatmakesiteasiertostartuponforeignturf,itreducesthecompany'sshareoftheprofitstoonly20percentto50percent.

Thesolutionstothisproblemare:

fullyselectofstrategyandwayofexpansion;Clearthedevelopmentdirectionafterthecompany’sexpansion.

2.2Predictablechallenges

StarbucksmustcopewithsomepredictablechallengesofbecomingamaturecompanyintheUnitedStates.Notonlyaretheactivistsamongthemturnedoffbythepowerandimageofthewell-knownbrand,butmanyotherssaythatStarbucks'latte-sippingsophisticatesandpiped-inKennyGmusicarearealturnoff.Theydon'tfeelwantedinaplacethatsellsdesignercoffeeat$3acup.

Thesolutionstothisproblemare:

Effortstoimprovethebrandvalue;createtheuniqueconsumptionatmosphere.

2.3Staff’squality

Asitexpands,Starbucksfacesanotherbigrisk:

thatofbecomingafarlessspecialplaceforitsemployees.Foracompanymodeledaroundenthusiasticservice,thatcouldhavedirectconsequencesforbothimageandsales.Itsperksarenolongerenoughtokeepalltheworkershappy.Starbucks'paydoesn'tcomeclosetomatchingtheworkloaditrequires,complainsomestaff.

Thesolutionstothisproblemare:

Improvethestaff’sallowance;beequippedwithtalent;Restrictionofcontract.

2.4Culturalchallenges

AsStarbucksspreadsout,Schultzwillhavetobeincreasinglysensitivetothoseculturalchallenges.Now,Starbucksiswakinguptothegrandechallengesfacedbyanycorporationbentonbecomingaglobalpowerhouse.

Thesolutionstothisproblemare:

Culturalintegration;Cross-culturaltraining;Buildasharedvision.

3.CritiqueStarbucks'overallcorporatestrategy

Starbucks'overallbusinessstrategyisprimarilytoCentralizedexpansionstrategy.Starbucksnotonlyexpandinginthelocalmarket,butalsoincooperationwithlocalmanufacturersinoverseasmarkettoexpand.

Chart3theadvantageanddisadvantageofstrategy

Advantage

Disadvantage

Economiesofscale

Lowerprofitmargin

Dominationofmarket

Culturalconflict

Thedecreaseofthequalityofproductsandservices

Worseningcompetitiverelationship

Sourceofdata:

theauthorstosortout

3.1advantages

3.1.1Economiesofscale

RapidexpansioninaparticularareamakesStarbuckscoffeeshoptogether,thoughsaleswillinfluenceeachother,butitwillincreasetheoverallrevenue,expandmarketshare.DuetothelargesizeofStarbucks,thescaleeffectmakesdeliveryandmanagementcostslower.

3.1.2Dominationofmarket

Byfocusingonsomestores,Starbuckscanspeeduptocontrolthelocalmarket.Starbuckstakefulluseofthestrategyof"predatoryrealestate",payingarentabovethewholemarkettogethisopponentoutofthecoffeemarket.Theywouldratheridletheshopsthangivecompetitor’sopportunitytoenterthemarket.

3.2disadvantages

3.2.1Lowerprofitmargin

Asforthelocalexpansion,mostoftheoverseasstoresmustcooperatewithlocalpartners.Sorelativetodomesticshop,theprofitmarginofeachshopwillbelower.evengiveupa20%-50%oftheprofits.However,everynewbranchwillaffecttheexistingstoresales,soastolowertheoverallprofitmargins.Thus,whilechainStarbucksinglobalhasmorethanoneplayer,butitsshareofprofitisonlyasmallpartatthetopofthepyramid.

3.2.2Culturalconflict

Thecultureofeachcountryisdifferent;Starbucksinevitablyencounteredculturalconflictintheprocessofoverseasexpansion.Forexample,althoughFrenchprefersweetcoffeetasteofStarbucks,butFrenchregulationisstrictandthewelfareofworkersishigh,inthisway,Starbucks'profitwillbeshockedtoalargedegree.InEurope'scoffeeculture,firstly,Italiancoffeeshops'profitnotonlydeprivefromsellingcoffee,butalsosellingfood,butStarbucksdobadinthisaspect.Secondly,ItaliancoffeeismuchcheaperthanAmericancoffeeandthosewholiketodrinkblackcoffeepreferItaliancoffee.Facingthecompetitivedisadvantageproducedbyculturalconflict,it'sahugechallengeforStarbuckstoexpandoverseas.

3.2.3Thedecreaseofthequalityofproductsandservices

Firstly,onceemployee’sadvantageisoneoftheadvantageswhichStarbucksproudof,butwiththeincreaseoftheStarbucksstoresacrossthecountry,thebranchmanagersandemployees'moraleproblemismoreandmoreserious.Foracompanybasedonrichenthusiasm,bothforitsimageorsales,itcanhavebadeffects.Employeesofdissatisfactioncanaffectqualityofservice,andfarfromtheimagethatStarbucksemployeesproducecappuccinohappily,whichyouwanttodeliveredtocustomers.

Secondly,expansionmeanscompaniescashflowisinsufficient,whichmakestheenterpriseproductqualitygraduallydecline,declineinqualityisreflectedintheuseofrawmaterialsandproductspackingandsoonvariousaspects.

3.2.4Worseningcompetitiverelationship

Thestrategyof"predatoryproperty"Starbucksadoptedmakesneighborhoodactivistsandlocalenterprisesmoreandmoredisgust.What’smore,customerfeelannoyedbecausetheirchooseleewaydecrease.

4.Starbucks’strategytoimproveprofitabilityinJapan

4.1Expandtheoverallmarket

Starbuckscanmakemoreconvenienceforconsumerstogetproductsbyincreasingproductsaleschannels,therebyincreasingconsumersusetoexpandthemarketasawhole.Suchasthroughgrocerystoresorotherretailoutletstosellcannedcoffee.becauseStarbuckscoffeewithotherready-to-drinkbeveragesinJapan'smarketshareisstillsmall.

4.2costleadershipstrategy

Japan'seconomyrightnowisweak,thusonthebasisofusingthepriceadvantage,competitorsinprovidingsimilarservicesgraduallyerodedthemarketshareofStarbucks.Therefore,Starbucksshouldtrytolowertheproductcosttocreatetheadvantageandthenretakethemarketbyprovidingpricelowerthancompetitors.

4.3Productdifferentiationstrategy

Japanwasasuccesswhentheyfirstopenednewstores.Newshopsattractedlargecrowds,buttheeffectworeoffasthemarketbecamesaturated.Gradually,competitorsimitateStarbucksproductandservice.

Starbucksneedtoresearchtheircustomersandmarkettofindoutthesuddenchange.Bybeingmoreawareoftheircustomersandtheirlikesanddislikes.Theywillbeabletofindoutwhatadjustmentsareneededtobecomemoresuccessful.CombinedwithJapaneseculture,suchasthecheeryblossomStarbuckscanrodbackthemarketandfindthenewprofitgrowthpoint.