분야
doc2. External Analysis
A. Porter's 5 Forces Model
B. Macro Environment
3. Internal Analysis
A. Value Chain
B. BCG Matrix
4. Starbucks in the Beginning (before 1999 ~ 2000)
5. Starbucks Nowadays (after 2000~)
6. Suggestion
At that time, all fields of coffee market, Market share was about instant coffee 58%, coffee mix 24%, can coffee 13%, take-out coffee and brewed coffee 5%. And many customers were accustomed to tastes of vending machine coffee. So it was difficult to change their tastes.
Those tastes stated to change after appearance of American coffee. And in late 1990’s, as in vogue of espresso Coffee market started to various. Because of changes in life style, income level improvement and culture westernization, the number of people enjoying espresso was increasing.
Starbucks forecasted that increasing demand of luxurious coffee. Especially, Brand loyalty was important to Korean so Starbucks’ strong brand power is advantage to sale coffee in Korea market.
Industry Life Cycle
In 1990’s the position of Industry life cycle is embryonic step. Embryonic step is new products release, high investment. Starbucks invested R&D and development various coffee. So this was attractive to people. Starbucks targeted most of women in twenties and thirties.
Business Level Strategy – Value Creation Frontier
In the beginning of Starbucks in Korea Starbucks is differentiation strategy so located that as you can see left graph.
Starbucks Korea found Korean customer’s preferences that drinking coffee at café in long time. So they made stores bigger than other coffee shops.
The early success in Korean market
5 years have been past since Starbucks entered Korea market. Turnover had been increased from 6billion to 550billion by last year.
In 2008, Coffee sold about 1345 hundred billion. And Starbucks have increased store over 50.
Business Level Strategy Existing
Starbucks doggedly keep high quality of coffee. So they make an invest getting high quality coffee beans. They are definitely not Cost Leadership. And Starbucks targets not entire people but 20;s and 30’s women specially upper classes people. That is Market Segmentation is not high and they are not differentiation. Their business level strategy is focus. But Starbucks construct their own loyalty and various coffees. In that, their business level strategy is exactly focused differentiation.
