THUONGMAI UNIVERSITY

FACULITY OF ECONOMICS AND INTERNATIONAL BUSINESS

GROUP DISCUSSION
ENGLISH FOR BUSSINESS 1

THEME: STARBUCKS’S STRATEGIES

SUPERVISOR: Pham Thi Phuong Lien M. A

GROUP: 4

Hanoi, 03/2025
 THANK YOU
In the course of carrying out this topic about Starbucks’s strategies, we have received some
inspiring ideas and some vital help from many people to achieve the results as of today.
First of all, we would like to express our deepest gratitude to our lecturer, Pham Thi Phuong
Lien M.A, who has shared her experience in analyzing all sides of the topic to us. We gave
it our best shot; however, our research topic still contains some inevitable shortcomings.
Therefore, we would love to receive your guidance.
Thank you very much!
GROUP 4 - Class 242_ENTH3311_29.

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 TABLE OF CONTENTS
PART 1. INTRODUCTION ....................................................................................4

PART 2. BODY ........................................................................................................6

2.1 Marketing Strategies ......................................................................................6

2.1.1 Enhance Customers' Experience ..............................................................6

2.1.2 Product Innovation:...................................................................................6

2.1.3 Loyalty Programs:......................................................................................8

2.2 International Strategy ....................................................................................9

2.2.1 Multi - domestic strategy ...........................................................................9

2.2.2 Cultural sensitivity and customization ......................................................9

2.3 Sustainable strategies ...................................................................................10

2.3.1 Ethical and Sustainable Coffee Sourcing...............................................10

2.3.2 Environmental Protection and Waste Reduction ...................................10

2.3.3 Corporate Social Responsibility ..............................................................11

2.4 SWOT ANALYSIS .......................................................................................12

2.4.1 Strengths...................................................................................................12

2.4.2 Weakness ..................................................................................................15

2.4.3 Opportunities ............................................................................................17

2.4.4 Threats ......................................................................................................18

PART 3. CONCLUSION.......................................................................................20

REFERENCES .......................................................................................................21

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PART 1. INTRODUCTION
History of brand
Starbucks was founded in 1972 in Seattle, Washington by business partners Jerry
Baldwin, Zev Siegl and Gordon Bowker. It started out as a single store high-quality coffee
beans and equipment retailer, which made its standing in the city for the first 10 years. In
1982, Howard Schulz would join the company and following his trip to Milan, sought to
bring the Italian coffeehouse experience to the United States. However, this led to a fallout
in Schulz and the founders’ relationship, prompting Schulz to leave and start his own
company, Il Giorna.
It was an instant hit, allowing Schulz the chance of a lifetime to purchase Starbucks,
merging it with his own company and began its rapid expansion. Under Schulz’s vision,
Starbucks shifted its focus towards establishing itself as a third position between “home”
and “work” – a place where people can gather over high-quality coffee.
The 1980s and 1990s marked a rapid series of expansion. The company expands
beyond Seattle opening locations in Vancouver and Chicago. By 1996, Starbucks would
open its first overseas locations in Japan. This was followed by Europe in 1998 and China
in 1999.
In 2008, due to the ongoing financial crisis, Howard Schulz returns as the CEO,
leading a major effort in restructuring the brand’s identity, focusing on customer
experience, such as introducing a customer loyalty program and mobile ordering and
improving its menu, including first debuts of seasonal offerings such as the Pumpkin Spice
Latte. In the next year, Starbucks continues its effort to diversify its menu. It has also
successfully developed a mobile app which includes mobile ordering, loyalty program,
digital payment. The company has also established its presence on social media, creating
its Twitter account and debuting the Starbucks Facebook page.
As of 2024, Starbucks possesses 40,199 locations globally, holding the position of
the world’s largest coffeehouse chain whose logo has become a familiar sight to many.
Vision & Mission
Starbucks’s mission is “To be the premier purveyor of the finest coffee in the world,
inspiring and nurturing the human spirit – one person, one cup and one neighborhood at a
time.” This mission emphasizes Starbucks’ role in building places where people can gather
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and facilitate connections to each other. This also applies to its employees, where the
company culture promotes openness and warm interaction between the workers. Not
limited to the personnel factor, the locations were also deliberately designed to invoke the
sense of warmth and coziness, which combined with the baristas writing customers’ first
name on their drink, helps nurture warm relations amongst the baristas and customers.
Starbucks’s vision is “to establish Starbucks as the premier purveyor of the finest
coffee in the world while maintaining our uncompromising principles while we grow.”
This vision reflects Starbucks’ long-term goal to ensure that even while the company
expands globally, it remains committed to environmental sustainability and positive social
impact. This can be shown through the company’s initiatives like the Coffee and Farmer
Equity (C.A.F.E) Practices, which helps support local communities and reduce its carbon
footprint.
The mission and vision together form the cornerstone of Starbucks’ brand identity:
customer-centric approach, its goal of creating a third place between “home” and “work”
and dedication to its principles.

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PART 2. BODY
2.1 Marketing Strategies
2.1.1 Enhance Customers' Experience
Starbucks has consistently focused on enhancing the customer experience as a core
component of its marketing strategy. One of the most significant ways it achieves this is
through the creation of a welcoming, comfortable, and cozy atmosphere. Starbucks cafes
are not just coffee shops; they are spaces where customers can relax, socialize, or work in
a tranquil environment. The interior design plays a significant role in this, with warm
lighting, comfortable seating, and the signature cozy ambiance that invites people to linger.
This design philosophy has been carefully crafted to make customers feel at home,
allowing them to unwind and enjoy their drinks without feeling rushed.
In addition to the physical space, Starbucks has also focused on providing
personalized service to its customers. The brand has developed a strong connection with
its clientele by training baristas to interact with customers in a friendly and engaging
manner. Employees are encouraged to remember regular customers' names and their
preferred drinks, creating a personalized touch that sets Starbucks apart from other coffee
chains. This level of service ensures that customers feel valued, and it creates an emotional
bond that fosters loyalty.
Personalization doesn't stop at customer interactions but extends to the beverages
themselves. Starbucks has long embraced customization, allowing customers to tailor their
drinks to their precise preferences. Whether it's adjusting the level of sweetness, choosing
from a variety of milk options, or adding unique flavors, customers can create their perfect
beverage. This attention to detail makes the Starbucks experience feel unique to each
individual.
By combining a warm and welcoming atmosphere with personalized service,
Starbucks has cultivated a loyal customer base that feels emotionally connected to the
brand. This experience is not just about coffee; it's about creating a place where people feel
comfortable, valued, and at ease, which encourages repeat visits and a sense of belonging.
2.1.2 Product Innovation:
Product innovation has been a driving force behind Starbucks' success in
maintaining customer interest and staying relevant in a competitive market. Starbucks is
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known for frequently introducing new products, both seasonally and on a more regular
basis, to keep its offerings fresh and exciting. The company’s ability to innovate has played
a crucial role in attracting both new customers and retaining existing ones, as consumers
are always eager to try the latest drinks or menu items.
Seasonal product launches are a key element of Starbucks' marketing strategy. For
instance, the introduction of the Pumpkin Spice Latte in the fall has become an iconic event
in the coffee world, with customers eagerly anticipating its return each year. This seasonal
approach not only drives sales during specific times of the year but also creates a sense of
exclusivity around these products. Limited-time offerings create a sense of urgency,
motivating customers to visit Starbucks more frequently to experience these unique flavors
before they disappear. In addition to the Pumpkin Spice Latte, other seasonal favorites,
such as the Peppermint Mocha for the winter holidays, contribute to the brand's reputation
for offering innovative, holiday-themed drinks.
Starbucks also taps into emerging food and beverage trends through product
innovation. For example, the company has expanded its menu to include plant-based milk
options like oat milk, almond milk, and coconut milk, catering to the growing demand for
dairy-free alternatives. This move appeals not only to vegans and lactose-intolerant
customers but also to health-conscious individuals who are looking for more sustainable,
plant-based options. By continuously adapting to changing consumer preferences,
Starbucks maintains its reputation as an industry leader in product innovation.
Moreover, Starbucks frequently tests new products in select markets before a
nationwide rollout, ensuring that it can gauge customer response and refine its offerings.
This approach allows the brand to experiment with different flavors, ingredients, and
formats to see what resonates with its customers. Once successful products are identified,
they are often expanded to a wider audience, further strengthening the brand's position in
the market.
In short, product innovation is a key pillar of Starbucks' marketing strategy. By
continually introducing new, exciting products and keeping up with trends, Starbucks
ensures that customers remain engaged and excited about what the brand has to offer,
creating a sense of anticipation and loyalty.

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 2.1.3 Loyalty Programs:
Loyalty programs have become an essential tool for businesses looking to build
customer retention, and Starbucks' Rewards program stands as one of the most successful
examples of this strategy. The Starbucks Rewards program is designed to reward repeat
customers with benefits that encourage them to return to the brand on a regular basis. The
program offers a combination of rewards, including free drinks, discounts, birthday treats,
and exclusive offers, all of which are designed to increase customer satisfaction and
loyalty.
One of the standout features of the Starbucks Rewards program is its point-based
system. Customers earn "Stars" for every purchase they make, with the number of Stars
varying based on the amount spent. Accumulating a certain number of Stars unlocks
rewards, such as a free drink or food item. This system is simple and intuitive, making it
easy for customers to understand the value of their purchases and encouraging them to
return frequently to reach the next reward level.
Additionally, the Starbucks Rewards program has a digital component that allows
customers to track their Stars, receive personalized offers, and even order ahead through
the Starbucks app. The app plays a critical role in enhancing the customer experience, as it
makes it easier for loyal patrons to order their favorite drinks without waiting in line. By
integrating technology into the loyalty program, Starbucks not only makes the process
more convenient but also gathers valuable data on customer preferences, enabling the brand
to tailor its offerings and marketing messages.
Another key benefit of the Starbucks Rewards program is its ability to foster a sense
of exclusivity among members. Rewards members often receive early access to new
products, special promotions, and personalized deals. This sense of being part of an
exclusive group helps strengthen the emotional connection between customers and the
brand, making them feel more valued and appreciated.
The program also drives repeat business by creating a sense of urgency. Since Stars
have an expiration date, customers are motivated to use their rewards before they lose them.
This encourages them to make more frequent visits, thereby increasing their overall spend.
Additionally, the program’s integration with Starbucks' mobile app further enhances
convenience, leading to more impulse purchases.

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 Starbucks Rewards is a successful loyalty program because it effectively aligns with
the company’s overall marketing strategy of building long-term relationships with
customers. By rewarding frequent customers with personalized offers and creating an easy-
to-use digital experience, Starbucks encourages repeated visits and fosters deeper customer
loyalty. The program not only boosts sales but also enhances the overall customer
experience, making it a crucial element in Starbucks' marketing strategy.
2.2 International Strategy
2.2.1 Multi - domestic strategy
The framework that best describes Starbucks' internationalization approach is the
multi-domestic strategy. As per this strategy, companies focus on individual foreign
markets, treating each market as a separately competitive arena. It emphasizes low
integration and high responsiveness.
For Starbucks, this has meant tailoring its products, marketing campaigns, store
designs and operations to suit the unique preferences and customs of each local market.
While maintaining consistency in quality, branding and customer experience core, it
delegates decision-making powers to local franchisees. This allows them to adapt menus,
aesthetic elements and promotional activities to match the local customer psyche.
2.2.2 Cultural sensitivity and customization
Upon entering new markets, Starbucks conducts extensive research to gain cultural
insights before store operations even begin. The brand meticulously analyzes local coffee
drinking habits, social norms, and economic conditions to understand nuanced preferences.
This data-driven approach informs strategic decisions on store layouts, menu
customization, and marketing tactics tailored to the host country.
For example, in Japan, Starbucks offers matcha-infused beverages and traditional
Japanese decor derived from research revealing local tea-drinking traditions.
In China, Starbucks embraces the "ganbei" culture by creating a welcoming
environment for social gatherings aligned with drinking customs. Regional preferences are
also respected through customized food items—China sees xiaolongbao dumplings while
India indulges in masala chai lattes.

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 By thoughtfully integrating localized flavors, Starbucks seamlessly blends into
diverse coffee cultures while maintaining the consistent quality expected of the premium
brand. This cultural sensitivity enables the establishment of an authentic local presence,
resonating deeply with consumers and expediting market penetration. International success
is founded upon such adaptive strategies embracing rather than confronting local identities.
2.3 Sustainable strategies
In addition to marketing strategies and International Strategies, sustainable
strategies play a crucial role in Starbucks’ successful development. The company not only
focuses on profitability but also prioritizes social responsibility and environmental
protection. Starbucks' sustainability strategy is centered around three main aspects:
sustainable coffee sourcing, environmental protection, and social responsibility.
2.3.1 Ethical and Sustainable Coffee Sourcing
Starbucks adopts a sustainable approach to coffee sourcing. Starbucks launched its
Coffee and Farmer Equity (C.A.F.E.) Practices program in 2004 to ensure that coffee is
produced ethically, transparently, and in an environmentally friendly manner. The
program is based on four key criteria: product quality, economic accountability, social
responsibility, and environmental protection. This approach reduces environmental impact
by limiting the use of chemicals, protecting water resources and preserving biodiversity.
Additionally, it ensures better working conditions for coffee farmers and laborers by
guaranteeing fair wages, providing a safe working environment, and granting access to
essential resources such as education and healthcare. Currently, over 99% of Starbucks'
coffee is sourced through this program, contributing to a sustainable coffee supply chain
that benefits farmers, consumers, and the environment. By maintaining long-term
partnerships with coffee-growing communities, Starbucks promotes economic
sustainability within the industry.
2.3.2 Environmental Protection and Waste Reduction
Starbucks is implementing a comprehensive strategy to minimize environmental
impact through innovative beverage packaging solutions. The coffee chain's environmental
footprint is being optimized through two primary pillars: developing recyclable packaging
solutions and fostering a culture of reusable container usage within their customer
community. The company has eliminated plastic straws and replaced them with recyclable

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lids. Customers who choose to stay in-store can also request their beverages to be served
in ceramic cups, a solution that not only promotes environmental friendliness but also
enhances the overall beverage consumption experience.
Notably, each paper cup saved contributes not merely to waste reduction but directly
to forest resource conservation. Research indicates that paper cup production demands
significant wood-based resources; therefore, reducing paper cup usage has a positive
impact on deforestation prevention. To promote this trend, Starbucks has launched various
innovative incentive programs, such as discounts for customers bringing personal cups and
organizing campaigns to raise awareness about the environmental impact of single-use
plastic waste.
In addition, Starbucks has acknowledged that a significant portion of its in-store
waste, including used coffee grounds, is often discarded in landfills or water sources,
contributing to soil and water pollution. To address this issue, Starbucks encourages
customers to repurpose coffee grounds, which serve as a rich source of organic matter,
enhancing soil fertility and promoting plant growth. Used coffee grounds contain high
levels of organic nitrogen, phosphorus, and potassium, making them excellent natural
fertilizers. When properly composted, these grounds can enhance soil structure, improve
water retention, and promote beneficial microbial activity.
Furthermore, coffee waste holds potential in sustainable material production.
Researchers have explored using coffee grounds in bioplastics manufacturing, providing
an eco-friendly alternative to petroleum-based plastics. Additionally, coffee waste can be
applied in the cosmetics and personal care industry. When incorporated into skincare
products, coffee grounds act as a natural exfoliant, removing dead skin cells and improving
skin texture.
2.3.3 Corporate Social Responsibility
Beyond environmental initiatives, Starbucks also focuses on social responsibility.
The company provides employee benefits such as healthcare coverage, scholarship
programs, and career development opportunities. Starbucks actively supports local
communities through various social impact programs, investing in youth employment
initiatives, collaborating with nonprofit organizations to combat hunger and homelessness,
and funding small businesses in underprivileged areas. Furthermore, Starbucks is dedicated
to fostering an inclusive work environment, ensuring equality regardless of gender,
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ethnicity, or religion. The company continuously strives to close the gender pay gap,
implement anti-discrimination policies, and create safe spaces where employees can voice
their concerns. Through these efforts, Starbucks reinforces its commitment to social
responsibility and sustainable business practices.
This integration of environmental and social responsibility marks a strategic shift in
corporate governance. It reflects the growing awareness of consumers and the increasing
market demand for sustainability. Starbucks' success in implementing these initiatives
demonstrates that corporate responsibility and business performance can be
complementary objectives, establishing a model for sustainable business practices in the
contemporary market landscape. By balancing profitability with social and environmental
commitments, Starbucks exemplifies how modern corporations can create value while
addressing broader societal challenges, setting industry standards for responsible business
practices.
2.4 SWOT ANALYSIS
2.4.1 Strengths
a) Strong Brand Recognition
Strong brand recognition is undeniably a key strength for Starbucks, serving as the
backbone of its successful business model. The company has cultivated a solid reputation
over the years for exceptional quality and unparalleled customer service excellence, which
has positioned Starbucks as one of the most recognizable and revered coffee brands
globally. This formidable brand recognition not only fosters deep customer loyalty but also
empowers Starbucks to stand out distinctly from its competitors in a saturated market.
The strength of Starbucks’ brand identity allows it to command higher prices for its
premium products, as loyal customers are more than willing to pay a premium for the
quality they have come to expect and the esteemed reputation that comes with it. The
perception of Starbucks as a purveyor of high-quality coffee is further enhanced by its
commitment to ethically sourced ingredients and artisanal brewing methods, ensuring that
each cup of coffee embodies a consistent standard of excellence. As a result, customers
often perceive Starbucks not just as a place to grab a quick coffee but as an experience that
reflects a sophisticated lifestyle.

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 Moreover, strong brand recognition simplifies Starbucks' entry into new markets,
both domestically and internationally. When entering a new region, the company can
leverage its well-established brand reputation to attract a broader customer base that
inherently trusts the quality and values associated with the Starbucks name. This trust
reduces the barriers typically associated with penetrating unfamiliar markets, thereby
accelerating the company’s expansion efforts. Consequently, the ability to tap into diverse
customer demographics around the world further enhances the brand’s recognition and
reach.
In addition, the benefits of strong brand recognition extend beyond pricing power
and market entry; they play a crucial role in driving sales and supporting the company’s
overall growth strategy. With customers loyal to the Starbucks brand, repeat purchases are
enhanced, leading to consistent revenue streams. Furthermore, brand recognition enables
Starbucks to engage in effective marketing campaigns that resonate with its audience,
helping to create emotional connections that can translate into increased customer retention
and advocacy.
Starbucks also enjoys the leverage of its brand recognition to introduce new
products and initiatives, allowing the company to remain innovative within the competitive
coffee landscape. When customers already trust and recognize the brand, they are more
inclined to try new offerings, such as seasonal drinks or food items, which contributes to
overall sales growth. This adaptability makes Starbucks a dynamic player in the coffee
industry, as it can pivot and cater to evolving consumer preferences while maintaining the
loyalty of its core customers.
b) Unwavering Commitment to Quality and Standardization
At the heart of Starbucks’ success is its commitment to sourcing high-quality coffee
beans. The company carefully selects beans from renowned coffee-growing regions such
as Colombia, Ethiopia, and Brazil—areas known for their rich coffee heritage. Starbucks
enforces rigorous quality standards, ensuring that only the best beans make their way into
its supply chain. Additionally, the company works closely with farmers through its Coffee
and Farmer Equity (C.A.F.E.) Practices, a program designed to promote ethical sourcing,
environmental sustainability, and fair wages. By investing in sustainable farming and direct
trade, Starbucks not only secures a reliable supply of premium coffee but also strengthens
its relationship with local communities.

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 Beyond the beans themselves, Starbucks ensures that the entire customer experience
is carefully standardized. Every Starbucks store worldwide is designed to create a familiar
and inviting atmosphere, complete with signature elements like the rich aroma of freshly
brewed coffee, warm lighting, and comfortable seating. This consistency allows customers
to enjoy the same Starbucks experience whether they are in New York, Tokyo, or London.
Moreover, Starbucks standardizes its drink-making process to maintain quality. Baristas
follow precise recipes and use state-of-the-art equipment to ensure that every espresso shot,
latte, or cappuccino meets the company’s exacting standards. This approach minimizes
variations in taste, guaranteeing that customers receive a consistently excellent product
every time they visit.
Maintaining quality at a global scale requires a sophisticated and efficient supply
chain. Starbucks has developed an extensive logistics network that ensures coffee beans,
dairy, syrups, and other ingredients reach stores in optimal condition. The company invests
in advanced technology to track inventory, monitor bean quality, and streamline
distribution. By using data analytics, Starbucks can anticipate supply chain disruptions and
adjust accordingly, preventing inconsistencies in product availability and quality.
Furthermore, Starbucks enforces stringent quality control measures at every stage of
production. From sourcing and roasting to packaging and delivery, each step undergoes
rigorous testing to uphold the brand’s standards. This meticulous approach allows
Starbucks to maintain its reputation as a premium coffee provider while ensuring customer
satisfaction.
Starbucks recognizes that quality and standardization go beyond products—they are
also about people. The company invests heavily in training its employees, referred to as
“partners,” to ensure they have the skills and knowledge needed to deliver exceptional
service. Baristas undergo extensive training in coffee preparation, customer service, and
brand values, transforming them into coffee artisans who can educate customers about
different brews and flavors. Additionally, Starbucks encourages continuous learning and
improvement. Employees receive ongoing training and opportunities for career growth,
fostering a culture of excellence and engagement. This emphasis on employee development
not only enhances service quality but also strengthens customer loyalty by creating a more
personalized and knowledgeable interaction with every visit.

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 While Starbucks is known for its standardization, the company also understands that
maintaining quality requires continuous improvement. Starbucks constantly innovates by
introducing new products, refining recipes, and incorporating customer feedback. Whether
it’s expanding plant-based menu options, improving sustainability practices, or enhancing
mobile ordering services, Starbucks adapts to changing consumer preferences while
maintaining its core commitment to quality. One example of this adaptability is the
introduction of Starbucks Reserve Roasteries, which offer a more artisanal coffee
experience while still adhering to the brand’s high standards. By blending tradition with
innovation, Starbucks continues to set itself apart in the competitive coffee industry.
Starbucks’ unwavering commitment to quality and standardization is the backbone
of its success. Through meticulous sourcing, consistent customer experience, advanced
supply chain management, employee training, and continuous innovation, Starbucks
ensures that every cup of coffee meets its high standards. This dedication has not only
established Starbucks as a global coffee leader but has also fostered strong customer loyalty
and trust. As the company continues to grow and evolve, its focus on quality and
standardization will remain central to its mission, ensuring that Starbucks remains a symbol
of excellence in the coffee industry.
2.4.2 Weakness
a) High Prices Compared to Some Competitors
Starbucks is widely recognized for its commitment to high-quality products and
exceptional customer service, which has helped establish its premium brand image.
However, this focus on quality often translates into higher prices compared to competitors,
creating a nuanced dynamic in the coffee market. While many customers are willing to pay
a premium for the distinctive flavors and personalized experience that Starbucks offers,
these elevated prices can simultaneously be viewed as a potential weakness, particularly in
a landscape where numerous competitors provide similar products at more affordable rates.
The pricing strategy adopted by Starbucks may indeed be justified by the quality of
its offerings and the overall customer experience, but it also poses challenges in attracting
price-sensitive consumers. In an era where many coffee drinkers are increasingly budget-
conscious, particularly younger demographics or those in economically constrained
regions, the higher price point can act as a barrier. Competitors who operate with lower

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price structures can easily sway these customers, making it difficult for Starbucks to
capture a significant share of this market segment.
The perception of value can vary drastically across different markets, especially in
areas with lower disposable incomes. In such contexts, the premium associated with
Starbucks products may not resonate as strongly, making it challenging for the brand to
justify its pricing. The risk here is twofold: the potential loss of customers to budget-
friendly alternatives and the challenge of maintaining a strong market presence in regions
where consumer spending patterns lean towards affordability.
In addition, the higher prices may provoke criticism from socially conscious
consumers who emphasize ethical consumption. These individuals often seek value not
only in product quality but also in fairness of pricing relative to sourcing practices. If
customers perceive that the premium charged by Starbucks is not directly tied to quality or
ethical practices, it could lead to discontent and a decline in brand loyalty.
Starbucks needs to leverage its strengths to mitigate these vulnerabilities. By clearly
communicating the value proposition associated with its pricing—highlighting ethical
sourcing, exceptional customer service, and unique product offerings—the brand can
cultivate a more profound understanding among consumers about what they are paying for.
Engaging in effective marketing campaigns that resonate with consumers' values may also
help reinforce loyalty, even among those who initially view the prices as prohibitive.
b) Major dependence on a single product line (coffee)
One of Starbucks' key challenges is its heavy reliance on coffee as its primary
product. While the company has successfully built a global brand around high-quality
coffee, this dependence poses risks, particularly in an industry subject to fluctuating coffee
bean prices, supply chain disruptions, and changing consumer preferences.
Despite offering an expanded menu that includes tea, food items, and seasonal
beverages, coffee remains its dominant revenue driver. This reliance makes Starbucks
vulnerable to market shifts, such as the growing preference for alternative drinks like
energy drinks, plant-based beverages, or functional wellness drinks. Additionally, climate
change and geopolitical issues affecting coffee-growing regions could disrupt the supply
chain, impacting both costs and availability.

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 2.4.3 Opportunities
a) Partnerships and collaborations with other companies or brands
Starbucks has a unique opportunity to enhance its market presence and customer
engagement through strategic partnerships and collaborations with companies across
various industries. By leveraging the resources, expertise, and brand equity of its partners,
Starbucks can access new markets, customer segments, and distribution channels. This
approach not only broadens its reach but also enriches the customer experience, making it
more dynamic and appealing.
Starbucks' successful partnerships is its collaboration with Spotify. This alliance
allows Starbucks to tap into the music streaming service's extensive user base, creating a
unique experience for customers who can enjoy curated playlists while visiting Starbucks
locations. Such partnerships enable Starbucks to reach new audiences and foster a deeper
connection with its customers, enhancing brand loyalty and engagement. By aligning itself
with well-known brands in the music, technology, and fashion sectors, Starbucks can create
innovative experiences that resonate with diverse consumer demographics.
Moreover, partnerships can serve as a catalyst for innovation within Starbucks.
Collaborating with startups and companies that are developing cutting-edge products or
technologies can provide Starbucks with fresh ideas and solutions that enhance its
offerings. For instance, partnerships with tech companies can lead to advancements in
mobile ordering, payment systems, and customer loyalty programs, streamlining
operations and improving the overall customer experience. By embracing innovation
through collaboration, Starbucks can stay ahead of industry trends and adapt to changing
consumer preferences.
b) Adopt Price Differentiation
Adopting price differentiation presents a significant opportunity for Starbucks to
enhance its market competitiveness while better meeting the diverse needs and preferences
of its customer base. By implementing a tiered pricing strategy, Starbucks can introduce
various product options that cater to different consumer segments, such as premium and
regular offerings. This approach not only allows the company to appeal to a broader
audience but also aligns its pricing with the perceived value of its products and services,
ultimately driving customer satisfaction and loyalty.

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 By offering premium coffee blends or specialty beverages at a higher price point,
Starbucks can attract customers who are willing to pay more for a unique and high-quality
experience. Simultaneously, introducing regular options at a lower price can appeal to
budget-conscious consumers, such as students or seniors, who may be deterred by the
brand's traditionally higher prices. By providing discounts or loyalty rewards to these
specific customer segments, Starbucks can foster a sense of inclusivity and accessibility,
encouraging repeat visits and increasing overall sales.
Moreover, price differentiation can enhance Starbucks' ability to compete
effectively in a crowded market. As competition intensifies within the coffee industry,
having a flexible pricing strategy allows Starbucks to respond to market dynamics and
consumer trends more effectively. By adjusting prices based on demand, seasonality, or
promotional events, Starbucks can optimize its revenue streams while maintaining its
premium brand image. This strategic approach not only boosts profitability but also
positions Starbucks as a more adaptable and customer-centric brand in the eyes of
consumers.
2.4.4 Threats
a) Intense competition in the coffee industry
Starbucks operates in a highly competitive coffee industry, where it faces challenges
from both large coffee chains and independent coffee shops. These competitors offer
similar products and experiences, making it difficult for Starbucks to maintain its unique
market position. As a result, the company must continuously differentiate itself through
branding, customer experience, and product innovation to retain its market share.
Moreover, intense competition can directly impact Starbucks’ profitability and
customer traffic. When rivals introduce new offerings, competitive pricing, or unique
customer experiences, Starbucks may be forced to respond with costly marketing
campaigns, discounts, or product adjustments. This constant pressure to innovate and adapt
can strain the company's financial resources and operational efficiency.
Additionally, as more independent coffee shops gain popularity, consumer
preferences may shift toward local or specialty coffee brands. These smaller competitors
often provide personalized services and unique flavors that appeal to niche markets, posing
a long-term threat to Starbucks’ dominance. To stay competitive, Starbucks must carefully

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balance expansion, innovation, and customer engagement while managing the risks
associated with an evolving market landscape.
b) Changes in consumer preferences or trends
Starbucks faces significant challenges as consumer preferences and market trends
continue to evolve. A growing demand for healthier and more sustainable products may
reduce interest in certain Starbucks offerings, forcing the company to adjust its menu and
ingredient sourcing. Consumers today are more conscious of what they consume,
preferring organic, plant-based, and ethically sourced products. If Starbucks fails to keep
up with these expectations, it risks losing customers to competitors that better align with
these values.
Additionally, the rise of independent coffee roasters and specialty cafés poses a
threat to Starbucks' market dominance. Many consumers, particularly in urban areas with
strong craft coffee cultures, are shifting towards local brands that offer unique flavors and
personalized experiences. These small-batch coffee houses cater to niche preferences and
emphasize transparency in sourcing, appealing to socially and environmentally conscious
customers. This trend forces Starbucks to continuously innovate while maintaining its
brand identity and mass-market appeal.
Another major challenge is the shift in consumer behavior toward digital
convenience. The increasing preference for mobile ordering, delivery services, and
contactless payment means Starbucks must invest heavily in technology to keep pace with
customer expectations. While Starbucks has made significant progress with its mobile app
and loyalty program, the rapidly evolving digital landscape requires constant updates and
improvements. Failure to adapt to these changes could result in declining customer
engagement and loss of market share to tech-savvy competitors offering seamless digital
experiences.

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PART 3. CONCLUSION
In conclusion, Starbucks has effectively implemented a range of strategies that have
contributed to its dominant position in the global coffeehouse market. By leveraging its
strengths, such as a strong brand image, innovative product offerings, and a customer-
centric experience, the company has managed to build a loyal consumer base and achieve
significant market growth. Additionally, Starbucks' focus on sustainability and digital
integration showcases its adaptability and commitment to long-term success.
Through the SWOT analysis, it is clear that while Starbucks faces challenges,
including intense competition, fluctuating raw material prices, it has a well-established
framework for addressing these obstacles. The company’s ability to capitalize on its
strengths, address weaknesses, exploit opportunities, and mitigate threats has ensured its
resilience and continued success. Moving forward, Starbucks must continue to adapt to
market changes and consumer preferences, maintaining its innovative edge and reinforcing
its commitment to sustainability to secure its place as a global leader in the coffee industry.

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 REFERENCES
(2025) Starbucks Coffee Company. Available at: https://www.starbucks.com/
Our Starbucks mission. (2025). Available at: https://about.starbucks.com/stories/2025/our-
starbucks-mission/
Starbucks Coffee Company Timeline. Available at:
https://stories.starbucks.com/uploads/2019/01/AboutUs-Company-Timeline-1.6.21-
FINAL.pdf
Peter Westberg. (2024). The Starbucks Story: From Beans to Billions. Available at:
https://quartr.com/insights/company-research/the-starbucks-story-from-beans-to-billions
Breonna Bergstrom. (2022). Starbucks Marketing Strategy: Create A Remarkable Brand.
Available at: https://coschedule.com/marketing-strategy/marketing-strategy-
examples/starbucks-marketing-strategy
Daniel Pereira. (2024). Starbucks Marketing Strategy. Available at:
https://businessmodelanalyst.com/starbucks-marketing-strategy/
TRÁCH NHIỆM BẢO VỆ MÔI TRƯỜNG CỦA STARBUCKS. Available at:
https://thegarden.com.vn/starbucks-moi-truong/
Daniel Pereira. (2024). Starbucks SWOT Analysis. Available at:
https://businessmodelanalyst.com/starbucks-swot-analysis/
Hitesh Bhasin. (2024). Starbucks SWOT Analysis. Available at:
https://www.marketing91.com/swot-analysis-starbucks/
Starbucks SWOT Analysis. Available at: https://thestrategystory.com/blog/starbucks-
swot-analysis/
A Comprehensive SWOT Analysis of Starbucks: Understanding Strengths, Weaknesses,
Opportunities, and Threats. (2024). Available at: https://www.girolino.com/a-
comprehensive-swot-analysis-of-starbucks-understanding-strengths-weaknesses-
opportunities-and-threats/#harnessing-technology-for-personalization-and-efficiency
Starbucks International Strategy - A Case Study for Global Success. (2024). Available at:
https://www.thestrategyinstitute.org/insights/starbucks-international-strategy-a-case-
study-for-global-success

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 BẢNG ĐÁNH GIÁ THÀNH VIÊN
Họ và tên MSV Công việc Điểm Ghi chú
Nguyễn Thị Ngọc Linh 23D300068 Làm nội dung 2.2 A NHÓM
Làm PPT TRƯỞNG
Lê Anh Luân 23D300070 Làm nội dung B+ THÀNH
Introduction VIÊN
Lê Thị Diệu Linh 23D300117 Làm nội dung 2.3 B+ THÀNH
VIÊN
Tăng Thành Long 23D300022 Làm nội dung B+ THÀNH
Strength+weakness VIÊN
Lê Thị Loan 23D300069 Làm nội dung A THÀNH
Oppotunity+threat VIÊN
Làm Ppt
Nguyễn Thị Khánh Linh 23D300020 Làm nội dung 2.1 A THÀNH
Tổng hợp Word VIÊN

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