Starbucks Case

Essay by iulica_iulica28University, Master'sA, March 2009

download word file, 29 pages 2.3

Starbucks Case Study [pic]


First Starbucks was a Private Company, from its inception in 1971, to it's initial public offering in 1992. We believe that there since the beginning, Starbucks strategy has been one of growth. They have demonstrated all dimensions of a growth strategy: Internationalization in expanding into new countries and the global market. It has shown concentration in being creative and relying on it's core competency of making high quality coffee and coffee equipment to develop new products and markets. Horizontal Integration has been evident in the many strategic acquisitions, partnerships, and joint ventures. Vertical Integration has been another key success factor as Starbucks Corporation has integrated backwards in opening coffee roasting plants, and forwards in controlling the distribution of it's many products. This growth has taken it from a single store in Pikes Place Market in Seattle, to a worldwide company with sales of over $2.1

Billion and operations in almost thirty countries, in just 21 short years.

Time line

■1971 - First Starbucks coffee shop opens in Seattle's Pike Place Market - coffee bean roasting company

■1985 - Howard Schultz becomes CEO and founds Il Giornale Coffee Company - espresso beverages using Starbucks coffee beans

■1987 - Changes name to Starbucks Corporation

■1992 - IPO under the trading symbol "SBUX"

■1995 - Starbucks Coffee International opens in Japan

■1996 - Begins selling bottled Frappuccino drinks

■1999 - Acquires Tazo Tea company and Hear Music company

■2003 - Acquires Seattle's Best Coffee

■2005 - Introduces Starbucks Coffee Liqueur; Acquires Ethos Water

[pic][pic] Analysis



■Place (Location)


Products (in store)

■Starbucks sells brewed coffees, espresso beverages, cold blended beverages, food items, teas, branded coffee drinks, a line of ice...