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

1.IdentifythecontrollableanduncontrollableelementsthatStarbuckshasencounteredinenteringglobalmarkets.

WhentheStarbucksencounteredinenteringglobalmarkets,thecontrollableelementsincludedtheproduct,theprice,thefirmcharacteristicsandthepromotion.whilethemainuncontrollableelementsitfacedincludedthepoliticalforces,theculturalforces,thecompetitiveforcesandtheleveloftechnology.

Themaincontrollableanuncontrollableelementsareasfollows:

Chart1themaincontrollableelements

Controllableelements

Example

product

Schultzthoughtthatoffering8dollarssandwiches,desserts,andCDsinhisstoresandsellingpackagedcoffeeinsupermarketswould

significantlyboostsalesinthelate1990s.

price

InItaliancoffeeischeaperthanU.S.javaand,sayItalianpurists,muchbetter.Americanspayabout$1.50foranespresso.

firmcharacteristics

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

promotion

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

Sourceofdata:

theauthorstosortout

Chart2themainuncontrollableelements

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.