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Starbucks Coffee Company Transformation And Renewal

Solution Id Length Case Author Case Publisher
2218 365 Words (3 Pages) Nancy F. Koehn, Kelly McNamara, Nora N. Khan, Elizabeth Legris Harvard Business School : 314-068
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Starbuck was performing appropriately from the perspective of business and financial growth. At one end, the business expansion was taking place, and on the other hand, they were extending the range of different types of products offered to their diverse customer segment. 

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Despite this, Schultz could ascertain that the long-run growth prospects are limited owing to the internal and external business dynamics. Some issues included the tightening competition in the coffee and beverage market. A number of retail beverage brands have ventured into the industry. Some were catering to the lower-end market, and others to the high-end ones. Furthermore, Starbucks’ image as a brand that developed an emotional connection with the consumers was also eroding. Although the brand did well in terms of making its various business processes effective and cost-effective, the brand was losing its connection with its main target audience. This improved the profitability of the retail chain in the shorter run, but compromised the long-run revenue stream of the company. This was a major obstacle for the company.

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