Starbucks: Back to Basics?
ICMR HOME | Case Studies CollectionOR
To download Starbucks: Back to Basics? case study
(Case Code: BSTR307) click on the button below, and select the case from the list of available cases:
Buy With PayPal
» Business Strategy Case Studies
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
This case won the first prize in the John Molson Case Writing Competition 2008, organized by the John Molson School of Business, Concordia University, Montreal, Canada.
||For delivery in electronic format: Rs.
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges
Food and Beverage
Starbucks is a major specialty coffee retailer, with presence
in over 40 countries around the world. The financial crisis in the United States
and the consequent global economic problems, together with rapid expansion in
the number of its outlets created serious problems for the giant coffee
retailer. With the economy showing signs of a recession, more and more customers
started to cut down on consumption of expensive coffee. In addition, the rapid
growth in the 2000s had diluted the 'Starbucks Experience' and the company's
customers were complaining of falling service quality levels. Moreover,
cannibalization of sales as new stores were opened too close to existing outlets
also became a serious issue for the company.
The case discusses the possible reasons for the significant
drop in traffic and profits at Starbucks in 2008 and the transformational
initiatives that Howard Schultz, the founder CEO of the company, implemented to
revive the Starbucks brand and bring back customers to its stores.
» Understand the efforts needed to transform a commodity like coffee into an
» Recognize the role of leadership in turnaround management.
» Analyze the strategies undertaken to bring about a transformation in an
» Recognize the need for retention of customers in the face of economic
» Understand the perils of rapid expansion.
Globalization, Entry and expansion strategies, Competition,
Turnaround Strategy, Cannibalization, Gourmet coffee industry, The Starbucks
experience, Transformational Agenda, Retail Management, Strategic Management,
Managing in hard times, Luxury brands and recessions
Starbucks: Back to Basics?
- Next Page>>