Starbucks Driving Growth Through New Dining Occasions Case Solution

2. Company Overview

The American brand Starbucks Corporation is a coffeehouse chain and a coffee company. The headquarter of Starbucks is in Seattle, Washington, and has established operations in over thirty thousand locations all over the world. The company distinguishes itself by quality, taste, and consumer experience from all the other quick-service restaurants running within the United States of America. The company has committed to increasing growth to its product ranges by making an effort to target consumer throughout the other parts of the day other than just being their premium choice for morning coffee and breakfast.

3. Case Study Analysis

According to the case study, the company announced its strategy for growth in a five-year growth plan that was inclusive of increasing the operating income and revenues twice the amount that was reached in the year 2014. In addition to this, operating over thirty thousand stores all over the world by the year 2019. With the purpose of achieving this goal, the company devised seven strategies for growth, which are inclusive of being the employer of choice, become a leader in coffee, growing the portfolio of the store, creating new occasions, brand growth in consumer packages goods, building a Teavana as well as extending the digital engagements.

The major strategy was to identify the company’s revenues outside of its morning menu. In addition to this, in 2014, 46% of the total income was generated. This is far more than the 15 percent income from other fast food restaurants in the morning. Worse, the competition in the morning was more difficult with McDonald's, Subway, Panera Bread, and Taco Bell competing hard for morning coffee and breakfast menu. The company has made menu diversification through adding mid-afternoon, sunset menu, lunch and evening drinks, and snacks in order to increase sales within the other parts of the day other than the morning. Although, it is identified that some of the newly added products within the company’s menu are similar to the existent products that are already offered by Starbucks in the morning occasions.

4. SWOT Analysis

Strengths

Starbucks has major strengths that can be used to take to its competitive advantage. The strong brand image of the company is one great factor for driving sales as it comes alongside the faith of the consumers that the company offers quality products alongside premium taste that is difficult to find in other quick service restaurants. The extensive global supply chain of the company is considered to be another strength of the company; having a global outreach of the products puts the company in a strong spot. In addition to this, the company uses diversification strategies similar to the acquisition of La Boulage as well as Teavana. This diversification decreased the impact of industry and market risks.