Define a plan to add more value to starbucks company? make a case study to this company to make benefits tocustomers, organization, and sponsors? 5 pages usereferences

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Define a plan to add more value to starbucks company? make a case study to this company to make benefits tocustomers, organization, and sponsors?
5 pages

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Answered Same DayDec 22, 2021

Answer To: Define a plan to add more value to starbucks company? make a case study to this company to make...

David answered on Dec 22 2021
119 Votes
Starbucks – Overview
Starbucks Corporation is one of the leading handcrafted coffee and tea company which
roasts, markets and owns coffee retail operations in more than 60 countries across the globe.
Incorporated in 1985, the Company operates in four segments namely: America, Europe,
EMEA (Middl
e East and Africa) and CAP (China/Asia Pacific).
Besides the flagship brand, its portfolio also includes leading brands such as Seattle’s Best
Coffee, Tazo Tea, Starbucks Refreshers beverages, La Boulange bakery brand, Starbucks
VIA Ready Brew and the Verismo System by Starbucks. Starbucks through its own and
licensed stores sells a range of products that includes decaffeinated coffee beverages, iced
shaken refreshment beverages, Italian-style espresso beverages, whole bean and ground
coffees, variety of other coffees, juices, bottled water and fresh food items. One of the several
reasons that has marked the success of Starbucks is the projection of the brand as a distinct
venue for socialization between home and work.
Since recession, global beverage industry has growth at much smaller pace, and people have
increasingly become much cautious while spending on premium foods and beverages.
Starbucks is regarded as a premium coffee chain, that provides a unique experience to its
customers. Though Starbucks have been very successful over the last decade, it might face
difficulties in growing at the similar pace in the years to come. In order to continue its growth
trajectory upwards, Starbucks has to expand its operations beyond international boundaries
and increase its product portfolio. Following strategic initiative could possibly help Starbucks
in gaining market share, besides increase in its top and bottom line growth:
 Geographic Expansion
 Increase product portfolio
 Reward program to counter the segmentation approach used by its peers
 Focused marketing and promotional activities
 Continuous product improvement
Geographic Expansion
As of September 2012, Starbucks operated ~18,066 stores globally, which included both
Company-operated stores and licensed stores. Starbucks has more than 70% of its stores
located in the United States of America with majority of them being the Company-operated
stores. This clearly shows that Starbucks has larger exposure to the US market. However
continuous expansion in United States will lead to the cannibalization of existing locations,
thus resulting in lower same store sales. Thus it is very much important that Starbucks should
focus on expanding into international locations which have predominantly large number of
coffee drinking population, along with higher disposable income (because Starbucks
commands premium for its coffee). Very recently, Starbucks has launched its outlets in India
and Japan. Such international expansion could definitely helps Starbucks in gaining access to
the global market share.
Increase Product Portfolio
Though Starbucks started initially as a coffee...
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