Starbucks Case Study Essay

1437 Words Sep 9th, 2008 6 Pages
This is a proposal based on the case study “Starbucks – going global fast” (Cateora and Graham, 2007), further research has been undertaken and analysis and recommendation will be based on these sources of information.

Critique and analysis
Being a multinational company expanding at a speed that leads thoughts towards badly imaged global corporation like McDonalds are these days not considered a strength. McDonalds might have conquered the world and made profit of people’s bad habits of eating junk, but this has backtracked on them resulting in extremely bad image and word-of-mouth meaning declining sales and profits. They have now tried to reposition, but without much success.
Starbucks should learn from McDonalds and
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Image and perception
This aspect is the biggest source of risk threatening Starbucks right now. This risk is not to be found in the uncontrollable environment, but in the controllable.
Without consumers there is no future for Starbucks, it is therefore essential to understand them and meet there wants by tracking trends and continually improving the image of Starbucks. The way Starbucks is growing right now there is a big risk that they will be perceived to be a big global company wanting nothing but profit.
In relation to the image it is important to understand the product life cycle and the international extension of this as well as the diffusion of innovations and how a product, an idea or a trend is adopted through society. (Rogers, 2003)

1. Lack of innovations
In relation to the first point, there is a lack of being truly innovative and thereby doing what Starbucks was perceived at when they first entered the market in the 1980’s.
Being true to there previous strategy of being innovative in all aspects; human resources, concept, product, marketing etc.
What is happening currently is that several me too’ers are adapting and benchmarking the concept of Starbucks. This means that Starbucks only competitive advantage is that the fact that they back in the 1980’s where first movers. And

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