Topic > nce.6. The retail system is the anchor of Starbucks' brand building strategy, this can “catapult” Starbucks beyond its roots (according to a report by Merril-Lynch).7. Grocery store sales are not essential to survival, but are necessary to remain a major player (Orin Smith, p15).8. Supermarket merchandising will move customers from low-priced coffee categories to higher-priced specialty coffee brands (p13).9. “Starbucks executed its strategy almost to perfection (quote from an investment firm, p19).10. Starbucks plans to have 2,000 retail stores by 2000. My Opinions – My opinions are included in the “Issues Analysis” section of the document. Assumptions –1. Coffee sales in specialty stores will increase from 19% to 54% by 1999 (see Facts #8).2. Starbucks estimates 17% growth by 1999 (p5).3. Starbucks expects a lower cash investment to open future stores (see Exhibit 4).4. Starbucks plans to increase the number of stores in the Asia-Pacific region from 13 to 100 by 1999 (e.g... 5).
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