Starbucks story is about value innovation. Offering buyers fundamentally new and superior value in traditional businesses through innovative ideas and knowledge. The Company ’s retail goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and related products and by providing superior customer service, thereby building a high degree of customer loyalty. Starbucks strategy is directed towards increase of Starbucks’s market share in existing markets and new markets worldwide to support the Starbucks brand through the introduction of new products and the development of new distribution channels.Starbucks strategic expansion till now was achieved via its joint ventures with Pepsi and Dreyer's, its move to sell coffee in supermarkets, the possibility of marketing fruit-juice drinks and candy under the Starbucks label, and world wide web presence represented an ongoing drive on Schultz's part to continually reinvent the way Starbucks did business.Starbucks' expansion carries inherent risks. Many brands cannot do both retail and packaged goods. Too many extensions can erode a brand's identity. Wall Streeters say Starbucks should move onto supermarket shelves under a dual-brand strategy, but Mr. Schultz says that will not happen because the brand might suffer. In addition to fluctuating coffee prices, management believes that in the future, the Company's results of operations and earnings could be significantly impacted by other factors such as increased competition within the specialty coffee industry, the Company's ability to find optimal store locations at favorable lease rates, the increased costs associated with opening and operating retail stores in new markets, the Company's continued ability to hire, train and retain qualified personnel, and the Company's ability to obtain adequate capital to finance its planned expansion. Potential financial problems a...
