(16 pages of text)
Starbucks is faced with the issue of how it should leverage its core competencies against various opportunities for growth, including introducing its coffee in McDonald’s, pursuing further expansion of its retail operations, and leveraging the brand into other product areas. The case is written so that students need to first identify where Starbucks competencies lie along the value chain, and assess how well those competencies can be leveraged across the various alternatives. It also provides an opportunity for students to assess what is driving growth in this company. Starbucks has a tremendous appetite for cash since all its stores are corporate, and investors are betting that it will be able to continue its phenomenal growth, so it needs to walk a fine line between leveraging its brand to achieve growth while not eroding it in the process. This is an exciting case that quickly captures the attention of students.
- To help students understand the concept of competitive advantage in relation to the value chain.
- To help students understand the importance of prioritizing strategic growth options.
- To teach students how to evaluate successful and unsuccessful growth.
- To develop the link between brand equity, resources and capabilities, and organizational strengths and weaknesses.
Accommodation & Food Services
United States, Large, 1997
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