E_Group2 - STARBUCKS Submitted by Group2 Alok Kumar...

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STARBUCKS Submitted by: Group2 Alok Kumar Singh(244) Dhruv Bhatia(257) Febin Koyan(259) Gagandeep Singh(260) Swapna Pandharpatte(273)
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Agenda Industry Analysis SWOT Porter Five Forces Positions for above average return Financial Health – Starbucks Growth Drivers – Starbucks Resources Capabilities Core competencies
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Threat of New Entrants: Low Capex requires initial cost of property and also setting up of outlet for sale. Can be difficult where already many players are vying for market share. Mapping : Porter Five Forces The bargaining Power of Customers: LOW Product is differentiated. High income level and population living in urban areas going for specialty coffee More knowledgeable customers didn’t want to go back to average quality brew Trend of healthier lifestyle made specialty coffee a good alternative for alcohol
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Mapping : Porter Five Forces The threat of substitute products: Low Specialty coffee industry growing steadily at 15% annually in 1994 Consumption of non specialty coffee beverages was declining relative to specialty coffee Jockeying among current contestants: Low Many competitors in retail specialty coffee mkt (3485)
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The bargaining power of suppliers: Low Suppliers not concentrated, various suppliers available in pacific rim, East Africa, Latin America Fortunes of supplier tied with the specialty coffee industry . So reasonable pricing is done by the The product supplied by suppliers is not differentiated and the switching costs are low as Starbucks has wide array of suppliers From the above analysis, it industry (Specialty coffee) is highly attractive
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Positions giving Above Average returns Usage of high quality Arabica beans makes the coffee better
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