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case study chapter 9 starbucks

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Administrative Studies
ADMS 1000
Len Karakowsky

Case Study Chapter 9 1 Starbucks targets Quebecs cafe culturePorters five forces model is an attempt which basically evaluates the attractiveness of an industry It also provides managers with the idea of how the industry is doing Porters five forces model is a static which assumes all the firms goes through the forces in the same wayy For example in a star bucks case studyTim hortons one of the cheapest coffee shop as compare to star bucks Tim uses number one model of five forces its switching costs Tim uses threat of new entrants Tim Hortons doesnt need to worry about new industries comingsince their prices are so low that customers are going to stay with them y Bargaining power of buyers for star buckslot of coffee varieties very unique y Threat of substitutesstar bucks doesnt need to worry about being taken by other coffee industries because others dont have as much varieties as they havey Barraging power of suppliers There arent lot of coffee shop and coffee is not a rare resource sonumber of suppliers is larger than retailers star bucks loses on that area Because for example in the case lot of coffee beans are produced in Brazilso if the coffee beans producers stop supplying beans to star bucks then it is going to affect themThis is since if no coffee beansthen how will star bucks produce different flavour of coffee for their customers2 VRIOVRIO stands for Valuable how valuable is your product Rare how rare is your product Imitate is your product
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