STARBU

Porters
Threat of New Entry
After the oil, the Coffee is the second Industry of the most trated commodity. If we added the low price, the probability is high to see another competitor entering in the same business. The coffee drink, it is not the only factor of competition, the supply chain, and other company can improve the supply chain operation. The employees is another factor that another company can establish a competition, preparing to the personal professionally in coffee knowledge. Fast food can be a potential competitor, like McDonalds

Supplier Power

Supplier Power
Direct Relationship with Exporters,has avoid the The best coffe as purchase from Starbucks the close relationship with the exporters and the low concentration of the whole distribution chain of coffee from the producer to the exporter, has helped the power of porductores not be able to leave Strabucks a submissive position before them, unlike has steeled them. In addition, producers lack the knowledge, money and experience. The price of coffee is directly relationed with the amount of production, quality at any given time

Threat of Substitution The gourmet coffee, has sustitues as brevarage very similar and other are different. The basic and after this, we found others quiete diffrent,

VR
Valuable * Baristas, the presence of trained personnel to interact with customers concerning features of the coffee. * Hirinm talented people, we are committed to applying the highest standars of quality. * Supply chain Operation eliminating redundancy and maximimizing efficiency. serving to retail stores, specialty sales and whosale channels, mail order and the grocery channel.

Rare * Close Relationships with its exp *The rol of Howard Schultz it is a unique. Inspiring the people by h character causing the necessary e in the rest of the people, to give 1 in what they do. * Regular and direct contact betw senior executives and staff conta customers,due to the provide a d

interact with customers concerning features of the coffee. * Hirinm talented people, we are committed to applying the highest standars of quality. * Supply chain Operation eliminating redundancy and maximimizing efficiency. serving to retail stores, specialty sales and whosale channels, mail order and the grocery channel.

*The rol of Howard Schultz it is a unique. Inspiring the people by h character causing the necessary e in the rest of the people, to give 1 in what they do. * Regular and direct contact betw senior executives and staff conta customers,due to the provide a d source of information collected fr any person about any subject.

BAR
TO ENTRY * Supply-side economies of scale Variety of coffee buyers demand Several participants in the final delivery to the buyer of coffee

* Customer Switching Cost Consumers power to change the application to change their preferences and habits Variety in the coffe types that new consumers are demanding. * Capital requirements The cost to trainee to exporter and quality control to ensure quality investment

* Incumbency advantages independent of size Wide competition of substitute products effort of people in the development of knowledge of the coffee and the reversal of t appropriate places to search local Uncertain price of coffee because the harvest depends on several factors. * Restrictive goverments policy Regulations on sales of coffee in producing countries.

STARBUCKS CASE
Porters Five Force
Competitive Rivalry A different strategy can be developed for growing, like a varietals, flavored coffee and snack items, just like Second Cup and Timothys. Thinking in gourmet coffee, thi has several competitors of various kinds, but the nearest, is part of the same species, specialty coffee originating from basic coffee companies in the crocery chain. Alliance with antoher food service companies, is other base for the competition.

Threat of New Entry

Competitive Rivalry

Buyer Power

Threat of Substitution

Buyer Power They have been the main reason for the increasing growing the coffee consumption, due to they have changed their habits of life and affect coffee consumption increased, as more knowledge of the coffee acquired and socially has become the lifestyle away from home. They have been replacing the alcohol. Once a consumer learned to appreciate a high-quality in coffee, he or she did not go back to his or her favorite average quality.

Threat of Substitution offee, has sustitues as brevarage, some of them are d other are different. The basic Coffe is the closer we found others quiete diffrent, like milk or alcohol.

VRINE
Inimitatable/non-substitutable * Clear Vision from his CEO Howard S. the commitment for the highest standards of quality in everything they do. * The Brand image is almost inimitable, and it has turned into a desired equity for other companis like supermarkets, that receive hihg incomes for Starbucks products. Exploitable (competitive advantage) * Develop strategies foccus to other markets, such as dealers, like echelon resaturants and retail outlets catering to the day time trade. * Explote the marketing taking advantage of the nataional presence, that will allow to define the brand image.

Rare Close Relationships with its exporters. The rol of Howard Schultz it is almost nique. Inspiring the people by his haracter causing the necessary energy the rest of the people, to give 110% what they do. Regular and direct contact between enior executives and staff contact with ustomers,due to the provide a direct

The rol of Howard Schultz it is almost nique. Inspiring the people by his haracter causing the necessary energy the rest of the people, to give 110% what they do. Regular and direct contact between enior executives and staff contact with ustomers,due to the provide a direct ource of information collected from ny person about any subject.

the commitment for the highest standards of quality in everything they do. * The Brand image is almost inimitable, and it has turned into a desired equity for other companis like supermarkets, that receive hihg incomes for Starbucks products. * The packaging which one was able to ensure freshness of coffe, after roasting and air cooling.

as dealers, like echelon resaturants and retail outlets catering to the day time trade. * Explote the marketing taking advantage of the nataional presence, that will allow to define the brand image.

BARRIERS
TO EXIT * Engagement with other institutions to cover the monetary difference when they meet the minimum sales. * Presence in Supermarkets

r of coffee

nge their preferences and habits. emanding.

o ensure quality investment

the coffee and the reversal of the

nds on several factors.

tive advantage) to other markets, such turants and retail ime trade. ing advantage of the l allow to define the

turants and retail ime trade. ing advantage of the l allow to define the

ce when they meet the

APPL

Porters
Threat of New Entry
* There was no economy of scale because there was no mass production. * High selling prices * Demand by consumer for new and advanced technology has made to reduce price. * Some companies specialize in software or hardware, which led to her mastery of both design and control the market massifying the prduct, Microsft example in developing its operating system software specifically.

Supplier Power

Supplier Power * The supply chain is vital to the success of sales and cost reduction and segmentation in 5 servings of buyers helped focus the efficient delivery. * Is seen in the constant creation of new devices and Steve Jobs takes the idea of a technological breakthrough products without equal, as we noted in IPad, being the product that Job went to be the source of extinction of the netbook.

Threat of Substitution * At the begining in 1980s other devices serve other equipment, calculators, typewriters, but PC technology have become more versatile and nearly disappear other products such as typew * Other PC products until 1997 aprox due to M signed a contract to develop core products. * Since early 2000s, the consumer electronic p more competitive because, the divice are more versatil, such us Cell Phone development.

Competitive Ana

Broad (i.e., industry wide) Broad low leadership

Narrow (i.e., particular segment only)

Focused cost leadership

The company began focusing on a group of people as fairly s Computer, over the years and new product development an amassed diverse teams and their target markets, without los differentiation, both hardware and software, which took a b teams, leading to a more massive target market. The price has been falling on their computers, but not to the Dell, IBM, etc.. The Apple Market is maintained due to the lo leading edge of technology.

Dell, IBM, etc.. The Apple Market is maintained due to the lo leading edge of technology.

APPLE CASE
Porters Five Force
Competitive Rivalry * Technology and application development by IBM on 1980s. * Capacity at reduced prices. * Logistic and distribution chain. * having the control over the Hardware and Software, give to the company better perfomance in the incomes (in cellphone, there

Threat of New Entry

Competitive Rivalry

Buyer Power

Threat of Substitution

Buyer Power * Preferences by low price. * The perceived buyer power in creating the iPad, which is positioned between iPhone and Laptops. Consumers make purchase desicion about the technology and the price of miso, elements that come together on the iPad. (More Than 45,000 units sold on the first week)

Threat of Substitution ng in 1980s other devices served as substitutes for nt, calculators, typewriters, but with the advance of have become more versatile and portable, making it ar other products such as typewriters. ducts until 1997 aprox due to Microsoft and Apple ct to develop core products. 000s, the consumer electronic product has became ive because, the divice are more flexible and s Cell Phone development.

Competitive Analysis Grid

Broad low-cost leadership

Broad differentiation

Focused cost leadership

Focused differentiation

Low-cost

Differentiation Strategic advantage

on a group of people as fairly small market with its product primarily Apple d new product development and improvement of Apple Computer, Apple has heir target markets, without losing its main feature in the strategy based on re and software, which took a big step in the incorporation of Miscrosoft their ssive target market. their computers, but not to the degree to convert as trademarks massive HP, rket is maintained due to the loyalty of its user with the company and the

rket is maintained due to the loyalty of its user with the company and the