Arenas:

a. Product categories: Starbucks offers range of products which includes specialty

coffee, both flavored and non-flavored, and specialty sales. Sale of specialty coffee in
the stores will be the main focus. The main focus of providing would be through their
own stores and slowly expanding into the wholesale and retail channel.
b. Geographic Areas: It will be looking to expand to 2000 stores by the year 2000 by
expanding into major cities of US and Canada along with international expansion into
the Pacific Rim region.
c. Core Technology: The core technology for the firm would remain to be their
proprietary roasting curves.
d. Value creation: They can be involved in multiple stages in the value chain including
sourcing, processing, which includes the roasting and blending process, distribution,
sales and customer relationship.

Vehicles:

a. Expansion through organic growth seems to be the most obvious option for Starbucks
as this would give them full control on the quality of the coffee thus maintaining the
Starbucks coffee experience.
b. They can look for joint ventures especially while expanding internationally in the
Pacific Rim area because the domestic partners can improve functional ability of the
firm and give them more vital market information.

Differentiator:

a. Experience: The firm is a premium, high quality and consistent speciality coffee
company. It has always focused on giving a long lasting coffee experience to the
customers.
b. Quality: The quality of the coffee (in terms of consistency, proprietary curves &
blends & emphasis on freshness through restricted shelf lives) is top notch.
c. Supplier Relationships: Superior relationship with suppliers will continue to enable
them to source high quality coffee beans and meet growing requirements.
Staging:

a. Store Growth: It is planning on opening new stores as rapidly as possible. Current

penetration is low in the existing markets, and there is significant scope for
international expansion. The key is to expand internationally with caution, because
possibility of failure is higher. The first few stores shall serve as a test of the market,
and if the coffee gains acceptance, then it can expand more aggressively.

Economic Logic:

a. High Pricing: It should continue to sell high quality products at a premium to the
market, as previously.
b. Economies of scale: Continued growth in terms of volume will help lower
procurement and processing costs.

Arenas Staging
a. Specialty coffee industry Expanding into
b. Asia Pacific Market a. Top 50 US Market
c. Top 50 US Market b. Pacific-Rim
c. Canada
Vehicles With sustainable plans
a. Company-owned stores
b. Doppio Economic Logic
c. Frappuccino a. Profits through Franchise model
b. Replication advantage
Differentiators (Internal)
a. High Quality Service
 b. Strong Supplier Relationship
c. Experienced Senior Management
d. Roasting Curves

Arena: Starbucks is a retail outlet operating in the speciality coffee segment in USA and Canada.
Recently, it has opened its outlets in Tokyo, Japan.

Vehicles: It entered into a joint venture with pepsico to launcj Frappucino, a bottled drink to serve a
segemnt of its huge customer base.Starbucks is not a promoter of franchises and is a firm believer in
expansion via own retail stores. Also, the organisation has a committed leader and a dedicated team
of employees.

Differentiator: The company is seen to be selling gourmet coffee and is believed to be high on
quality of product and service. It is also seen as an innovator as it launched the first bottled coffe
drink and developed new roasting techniques for coffee beans to enhance the taste of liquid coffee.
Also, it sells accessories at the store.It aims at quality service and provide a memorable experience
to the customer.

Staging: The organisation is very aggressive with plans to own 2000 stores by the year 2000. It aims
at opening 30-40 stores per month in potential locations. Also, it has started operations in
unchartered waters by opening carts in railway stations etc. It wants to take first mover advantage
by advancing to Asia Pacific and the rest of the world.

Economic logic: It charges premium prices beacuse it offers speciality coffee. But people throng the
stores due to its quality customer service. Also, by way of unique taste and products it is always at
an advantage and is a profit making firm.

Arena:Starbucks is contemplating expansion and a move towards Asia pacific is on the cards. Also, it
has to weigh its option of supplying coffee through grocery stores.

Vehicles: It will have to enhance its relationship with the exporters as they sometimes tend to get
anxious while getting into an agreement with Starbucks on quality and delivery.

Differentiator: Beacuse its easy to emulate the service process, Starbucks will have to enhance its
service techniques at every point of time to differentiate itself from the rest.

Staging: It will have to decide whether to make inroads into the flavoured coffee segment and tie
ups with food providers like Mcdonalds.

Economic Logic: Starbucks will have to decide upon the economic potential before expansion and
weigh whether its agreement withMcD will not have an adverse impact on the image of the
company as a speciality coffee provider.