Question

2. What sorts of expansions seem most likely to benefit Starbucks in the future? Which seem riskiest?

Answer 1

The sorts of expansions seem most likely to benefit Starbucks in the future

Starbuck (NASDAQ: SBUX) is expanding aggressively, especially in China, but the company has been grappling with slowing comparable sales growth at its existing stores. Based on its 2017 fiscal year results, the company has revised its comparable sales growth numbers to the range of 3% to 5%. While this is higher than what competitors such as Dunkin’ Brands are likely to achieve, it is much lower than the 8% comparable sales growth Starbucks achieved in Q1 2016. With existing restaurants reaching a slowing growth phase, a significant portion of the company’s growth is likely to come from adding new restaurants. According to our estimates, nearly $13 billion of Starbucks’ valuation is likely to come from store expansion.

Every business needs to carry out a successful marketing strategy in order to be noticed by consumers and to forge brand identity. Throughout this section, Starbucks' marketing strategy will be described using the core marketing strategy concept, identifying the positioning and marketing mix, and analyzing the environment in which it operates. Strategic marketing will further be used in complement with tools such as the An off and BCG Matrix

Riskiest

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