Founded in 1971 and acquired in 1987 by CEO Howard Schultz Starbucks was an American success story. In forty years it was from a single-site coffee roaster in Seattle, Washington to a multibillion-dollar global company that operates more than 17,000 retail cafes in fifty countries and sells coffee beans, instant coffee, tea and ready-to-drink beverages in tens of thousands of food and mass merchandise stores. However, moving into new contexts such as Starbucks market as part of its … Read more »

Founded in 1971 and acquired in 1987 by CEO Howard Schultz Starbucks was an American success story. In forty years it was from a single-site coffee roaster in Seattle, Washington to a multibillion-dollar global company that operates more than 17,000 retail cafes in fifty countries and sells coffee beans, instant coffee, tea and ready-to-drink beverages in tens of thousands of food and mass merchandise stores. But as Starbucks moved into new contexts market as part of its aggressive growth strategy, the assets and activities of central importance to their competitive advantage in its retail were changed or weakened coffee shops, making it more vulnerable to competitive threats from both higher and lower quality entrants. The company had to make decisions about the vertical integration in connection with the expansion in consumer goods.
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from
Craig Garthwaite,
Meghan Busse,
Jennifer Brown,
Greg Merkley
Source: Kellogg School of Management
20 pages.
Release Date: 13 July 2012. Prod #: KEL665-PDF-ENG
Starbucks: A Story of Growth HBR case solution