The second case study is Starbucks after Schultz: How to Sustain a Competitive A
The second case study is Starbucks after Schultz: How to Sustain a Competitive Advantage on p. 470.
The chapters to focus on are Ch. 4 (Internal Analysis) and Ch. 6 (Differentiation, Cost Leadership, and Blue Ocean Strategy).
Some questions to help guide your analysis:
What was Starbucks’ competitive advantage that led to its initial success?
What were its core competencies? Its valuable resources and capabilities? How dynamic were its capabilities? What differentiated it from the competition? What value did it provide its customers?
What changes did it make that led to its difficulties in the late 2000s? What was the cause of the difficulties?
How did its focus on cost control take away from their differentiation?
What was happening to Starbucks’ brand in the marketplace?
What changes did Schultz make upon returning? How did these changes restore growth to the company?
Which of Schultz’s changes do you agree and disagree with? Why?
What is Starbucks’ current status? Do some research on the company.
What is Starbucks’ current competition? What is the competition doing to compete with Starbucks (and each other)? Consider Porter’s Five Forces in assessing all of the competitive forces impacting Starbucks.
If you were consulting for Starbucks, what recommendations would you make to the management going forward.