Corporate Strategy Case Study

Starbucks' Music (Mis?)Adventure

OR

Abstract:
During the 1990s, due to customer demand, Starbucks started selling compilation CDs of the music that it played in its stores. By the turn of the 21st century, Starbucks acquired a CD catalogue company, launched an FM music channel, opened music media bars in 45 of its stores in Seattle and Austin and successfully released and marketed new albums of established as well as aspiring artists. However, Starbucks faced stiff competition from music and non-music retailers who offered on-line music at lower prices and user-friendly technology.

Pedagogical Objectives:

• To understand the strategies adopted by Starbucks to foray into music retailing
• To discuss the challenges that it might face in a highly competitive industry in transition

Keywords : US coffee retail market; US music industry; Global expansion of Starbucks; Competitive advantage of Starbucks; Product lines of Starbucks; Starbucks' brand extension; Music record labels; Corporate Strategies Case Study; Breakeven of revenues at media bars; Third place experience at Starbucks; Starbucks' customers; Starbucks Hear Music coffee houses; Starbucks Hear Music media bars; Antigone Rising; Genius Loves Company