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Case
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Reference no. 505-143-1
Subject category: Marketing
Published by: IBS Research Center
Published in: 2005
Length: 14 pages
Data source: Published sources

Abstract

Starbucks has been growing from strength to strength in the last two decades at an average annual rate of 20%. At the heart of Starbucks? success is a unique business model based on: (1) its products; (2) in-store experience; (3) service; (4) human resource policy; and (5) its domestic expansion strategy. In March 2005, Starbucks pushed its long term growth target from 25,000 stores to 30,000 stores while sustaining the 20% annual revenue growth over the next three to five years. According to James Donald, Chief Executive Officer of Starbucks, half of the 30,000 new stores would be overseas. To meet its ambitious growth targets, Starbucks has to cope with the predictable challenges of becoming a mature company in the US. Its famed human resource policy is proving a drain on its resources. Abroad, Starbucks is still far from successful. As 2005 gets underway, Donald and founder, Howard Schultz realise that they have to chalk out a fresh international strategy and reinvent their domestic strategy to sustain growth.
Location:
Industry:
Other setting(s):
1990-2005

About

Abstract

Starbucks has been growing from strength to strength in the last two decades at an average annual rate of 20%. At the heart of Starbucks? success is a unique business model based on: (1) its products; (2) in-store experience; (3) service; (4) human resource policy; and (5) its domestic expansion strategy. In March 2005, Starbucks pushed its long term growth target from 25,000 stores to 30,000 stores while sustaining the 20% annual revenue growth over the next three to five years. According to James Donald, Chief Executive Officer of Starbucks, half of the 30,000 new stores would be overseas. To meet its ambitious growth targets, Starbucks has to cope with the predictable challenges of becoming a mature company in the US. Its famed human resource policy is proving a drain on its resources. Abroad, Starbucks is still far from successful. As 2005 gets underway, Donald and founder, Howard Schultz realise that they have to chalk out a fresh international strategy and reinvent their domestic strategy to sustain growth.

Settings

Location:
Industry:
Other setting(s):
1990-2005

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