Starbucks Presentation Notes

Introduction

• Presenters:
  • Nabila
  • Nadine
  • Alia
  • Satrio
  • Juwan

Industry Analysis

1. Threat of New Entrants

• Low Barriers to Entry:
  • Many coffee shops can open with low investment & operational costs.
  • Growing specialty coffee market attracts new competitors.
• Franchise Opportunities:
  • Potential for companies to grow through franchising.
  • New brands can replicate Starbucks model.
• Digital Platforms:
  • New coffee brands can establish an online presence easily.

2. Bargaining Power of Suppliers

• Limited Suppliers:
  • Few high-quality coffee bean suppliers increase dependency.
• Commodity Price Fluctuations:
  • Volatile prices impact profit margins.
• Sustainability Constraints:
  • Suppliers may demand higher prices for sustainably sourced beans.
• Quality Control Issues:
  • Changes in supplier quality can affect brand reputation.
• Supplier Consolidation:
  • Mergers may reduce competition and increase prices.

3. Bargaining Power of Buyers

• Wide Range of Alternatives:
  • Many coffee shops offer various choices, empowering consumers.
• Loyalty Programs:
  • Can enhance retention but highlight ease of switching.
• Health Trends:
  • Shift towards healthier options may reduce traditional coffee demand.
• Social Media Influence:
  • Amplifies negative experiences affecting consumer loyalty.

4. Threat of Substitute Products

• Alternative Beverages:
  • Increased popularity of tea, energy drinks, cold brew, etc.
• Homemade Coffee:
  • Rise in home brewing due to quality equipment.
• Ready-to-drink Options:
  • Bottled coffees & cold brews available in stores.
• Dietary Trends:
  • Trends like veganism can shift preferences away from coffee.

5. Industry Rivalry

• Intense Competition:
  • Major players include Dunkin’, local cafes, etc.
• Brand Loyalty Challenges:
  • Competitors can lure loyal customers with better offerings.
• Innovative Product Offerings:
  • Rival brands introduce new products regularly.
• Global Expansion:
  • International competitors expanding into new markets.

Primary Activities

1. Inbound Logistics:
   • Sourcing high-quality coffee beans, strong supplier relationships focused on sustainability.
2. Operations:
   • Efficient operations with skilled baristas, consistent training programs.
3. Outbound Logistics:
   • Direct consumer delivery through apps, efficient inventory management.
4. Marketing and Sales:
   • Strong brand identity, loyalty programs, effective social media use.
5. Service:
   • Exceptional customer service, personalized experiences.

Support Activities

1. Infrastructure:
   • Strong corporate governance, strategic planning, investment in technology.
2. Human Resource Management:
   • Focus on employee training, benefits, satisfaction, diversity, and inclusion.
3. Technology Development:
   • Innovative mobile apps, digital payment systems, sustainable practices.
4. Procurement:
   • Ethical sourcing policies, investments in sustainability initiatives.