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SaMa

 Just Started!!


SaMa is Hindi word for Time! Just so you know. I just created this by using initial two letters of my First Name and Last Name.


-- Sandeep Manocha

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15 - Starbucks International Strategy

Starbucks mostly wants to own its own stores for best experience and it has done that successfully in US. Although drinking coffee in bar was not famous when Starbucks was started in 1970's. Howard Schultz inspired from this idea in Italy, started serving brewed coffee in US. He was an American Businessman and understood the economics, work, and local cultures of US, so was likely aware of the risks and opportunities of the time. He made Starbucks a success story in US and now we can find Starbucks stores in almost all the major and even small US cities.  But replicating same success would not that be easy. It would need lot of capital, cultural experiences, macro and micro economic indicators, and specifically language and accent. Some of these things can be replicated using the local hires, but creating a success at the level Starbucks would want to would not be easy without local partnerships and alliances. Starbucks heavily relied on license model for half of its stores and als...
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3 - Mr. Porter Coffee Please

1. Threat of Entry             a. Economies of Scale: Starbucks currently have 5 roasting facilities and opening a new one in China, which will be biggest so far and will serve approx. 6000 Starbucks in China itself. At this scale, it is very hard for any new entrant to compete with Starbucks on cost. https://u.osu.edu/commoditychaincoffee/manufacturing-page/ https://stories.starbucks.com/stories/2020/starbucks-announces-new-roasting-facility-in-china-extending-its-global-roasting-network/             b. Product Differentiation: Starbucks not only buys best coffee beans out there but also help them grow. They always use Arabic Coffee beans, which are considered best in quality for dark roasting and never mixed them any other type to cut down the cost and increase profit. “Starbucks Arabica beans are different from regular Arabica beans. At every step, we go to grea...
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13 - Starbucks Strategic Alliances

Starbucks has strategic alliances with many companies to expand into different markets, segments, and improve brand value. Most of its alliances are Nonequity Alliances. It has alliances with consumer product companies such as  Kraft Food, PepsiCo, and Nestle. They help Starbucks in different packaged and take-home products. From these alliances Starbucks gets the Economies of Scale, which would be harder to achieve if it would be doing these operations in its own. Apart from that, Starbucks has alliances with Target Stores, United Airlines, and Barnes & Noble for offering Starbucks brand coffee in the stores and on airplane. This helps Starbucks to be perceived as high-end brand. It has alliances with under the Seattle Coffee Co. with Subway, Burger King, and AMC to offer low cost coffee and compete with McDonalds & Dunkin without affecting the its main top of line expensive Starbucks brand. Starbucks has some international alliances to capture the markets such as it has a...
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