Case Analysis Week 6 Outline And Grading Guide ✓ Solved

Case Analysis Week 6 Outline and Grading Guide

Choose a case from the following list: Case 07 - World Wrestling Entertainment, Case 09 - Fresh Direct, Case 11 - Kickstarter, Case 14 - Pixar, Case 16 - Heineken, Case 17 - Ford, Case 19 - Johnson & Johnson, Case 23 - Starbucks, Case 30 - eBay.

COMPANY NAME, WEBSITE, and INDUSTRY: State the company name, website address, and industry.

BACKGROUND and HISTORY: Briefly describe the company, its primary business, and key players. If the company is currently in business, list the current CEO, total sales, and profit or loss for the last year. Identify key events or phases in the company’s history and describe its performance in the industry. Use the company’s website and financial search engines for data, ensuring to use APA citations throughout the paper.

ANALYSIS VIA PORTER’S FIVE FORCES MODEL: Analyze the competitive environment by listing the threat of new entrants, bargaining power of buyers, bargaining power of suppliers, the threat of substitute products/services, and the intensity of rivalry among competitors. Summarize key points in a figure.

GENERIC STRATEGY USED: Discuss how the company creates and sustains a competitive advantage. Identify the generic strategy undertaken by the company and whether it was successful. Comment on the applicability of the strategy across companies and its relation to the industry life cycle.

SPECIFIC STRATEGY(S): Choose two specific strategies from the list: Related Diversification, Achieving Competitive Advantage, Entry Mode, Entrepreneurial Strategy, Creating Ambidextrous Organization Designs, Leadership, and apply them in detail to the organization.

MANAGERIAL IMPLICATIONS: Discuss the practical managerial implications for this company based on your learnings.

REFERENCES: Complete the paper using the above sections and insert a separate reference page in accordance with APA guidelines.

FORMAT: Use a title page; Font: Times New Roman, 12 point; Include your name in the upper left-hand corner; Each section should be headed as described; Indent paragraphs; Insert page numbers; Paper length should be two double-spaced pages excluding the title page, references, or illustrations/tables; Use APA citations; Include a separate reference page.

Paper For Above Instructions

Case Analysis of Starbucks Corporation

COMPANY NAME, WEBSITE, and INDUSTRY

Starbucks Corporation, www.starbucks.com, Beverage Industry.

BACKGROUND and HISTORY

Starbucks Corporation is the world’s leading specialty coffee retailer, known for its premium coffee offerings and unique customer experience. Founded in 1971 in Seattle, Washington, Starbucks initially began as a retailer of high-quality coffee beans and equipment. Howard Schultz, who joined the company in 1982, played a crucial role in transforming Starbucks into a coffeehouse concept characterized by its unique customer service and ambiance (Schultz & Gordon, 2011). Today, Starbucks operates over 30,000 locations worldwide, serving millions of customers daily.

The current CEO is Howard Schultz, with total sales reported at approximately $29 billion in the last fiscal year and a profit of around $4.2 billion (Starbucks, 2022). Key phases in the company’s history include its rapid expansion in the 1990s and early 2000s, the introduction of the Starbucks Rewards program, and adapting to market changes on the health-conscious consumer trend.

Historically, Starbucks has consistently led the coffee industry, emphasizing a premium product and superior customer experience while expanding its market share globally (Thompson et al., 2022).

ANALYSIS VIA PORTER’S FIVE FORCES MODEL

Analyzing Starbucks using Porter’s Five Forces reveals the following:

  • Threat of New Entrants: Low. High brand loyalty and established customer base create significant barriers for new competitors.
  • Bargaining Power of Buyers: Moderate. Consumers have various alternatives; however, Starbucks’ unique brand experience mitigates pressure.
  • Bargaining Power of Suppliers: Moderate to high. Starbucks relies on high-quality coffee beans, making it vulnerable to fluctuations in coffee prices.
  • Threat of Substitute Products: High. Many alternatives exist, from other coffee shops to at-home brewing equipment, impacting consumer choice.
  • Intensity of Rivalry Among Competitors: High. Numerous competitors in the specialty coffee market intensify competition for market share.

These analyses should be summarized in a visual figure for better clarity.

GENERIC STRATEGY USED

Starbucks employs a differentiation strategy to create and sustain a competitive advantage (Dess et al., 2016). This strategy is focused on developing a unique retail experience through high-quality products, excellent customer service, and a rich brand narrative. The success of this strategy is evident in its strong market position and customer loyalty. However, the applicability of such a strategy may vary by industry; not all sectors may benefit from differentiation due to differing consumer preferences.

The industry life cycle also plays a critical role; as markets mature, differentiation may become increasingly challenging, necessitating regular innovation to maintain competitiveness (Kotler & Keller, 2016).

SPECIFIC STRATEGY(S)

For detailed analysis, we will examine two specific strategies::

Related Diversification

Starbucks has successfully diversified its offerings beyond traditional coffee. By introducing products such as snack items, teas, and branded merchandise, as well as venturing into music and books through Starbucks Entertainment, the brand has increased its revenue streams and enhanced customer loyalty (Thompson et al., 2022).

Achieving Competitive Advantage

Starbucks has consistently applied a strategy to achieve a competitive advantage through its customer-focused initiatives, such as the Starbucks Rewards program. This program not only enhances customer retention but also builds lasting relationships with customers, ensuring repeat business and fostering brand loyalty.

MANAGERIAL IMPLICATIONS

For managers at Starbucks, understanding these competitive forces and adjusting strategies accordingly is crucial. They must focus on maintaining strong supplier relationships to mitigate risks, continually analyze competitors to stay ahead, and remain innovative in tapping into consumer preferences to ensure sustained growth.

References

  • Dess, G., Lumpkin, G., & Eisner, A. (2016). Strategic Management (8e). Boston: McGraw-Hill Irwin.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Schultz, H., & Gordon, D. J. (2011). Onward: How Starbucks Fought for Its Life without Losing Its Soul. Rodale Books.
  • Starbucks. (2022). Annual Report. Retrieved from https://www.starbucks.com/investor-relations/financial-releases
  • Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland, A. J. (2022). Crafting & Executing Strategy: The Quest for Competitive Advantage (24th ed.). McGraw-Hill Education.
  • Porter, M. E. (2008). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
  • Mintzberg, H., Ahlstrand, B., & Lampel, J. (2009). Strategy Safari: A Guided Tour through the Wilds of Strategic Management. FT Press.
  • David, F. R. (2017). Strategic Management: A Competitive Advantage Approach. Pearson.
  • Barney, J. B., & Hesterly, W. S. (2015). Strategic Management and Competitive Advantage. Pearson.
  • Dyer, J. H., & Singh, H. (1998). The relational view: cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 660-679.

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